Question: Please read case study below and answer the question at the end.. Sidebar 1.4 Why Does the United States Spend More on Medical Care than

Please read case study below and answer the question at the end..

Sidebar 1.4 Why Does the United States Spend More on Medical Care than Other Wealthy Countries Spend? Positive economics has been used answer this question. Spending on a product equals the amount bought times its price, so analysts break down differences in spending into differences in volumes and differences in prices. Analysis shows us that there is little evidence that Americans use more medical care than other wealthy countries, but there is ample evidence that American prices are substantially higher (Docteur, Suppanz, and Woo 2003). For example, compared to patients in other wealthy countries, American patients typically use 27 percent fewer prescriptions but spend 41 percent more, implying that Americans are buying more expensive pharmaceuticals. Similarly, American patients typically have 36 percent fewer physician visits, yet spend 183 percent more (Cylus and Anderson 2007). The price per visit is much higher in the United States. Americans also spend far more on hospital care, even though they are less likely to be admitted and usually have a shorter stay if they are admitted. Some of the difference can be attributed to prices, but higher levels of staffing and equipment in American hospitals are also factors. Sorting out how much of the difference in the cost per hospitalization is attributable to price differences and how much is attributable to higher levels of staffing and equipment would be categorized as positive economics. Sorting out whether higher levels of staffing and equipment are worth the extra cost takes us into the realm of normative economics.

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Why is healthcare so much more expensive in the U.S. compared to other similar developed nations? Must provide 2 examples. You will also need to include at least 1 evidence from peer-reviewed journals to support your argument, in addition to your textbook. Also, you must pick one comparable country to compare the US to.

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