Economic TermsThere are several terms that are key to understanding the way healthcare is financed and supported. Economics, Supply and Demand, Microeconomics, Macroeconomics, Elasticity, Inelasticity, and Gross National Product are all words that have their place in fiscal throes of Health Care and its administration. Understanding and applying these terms correctly is important.
EconomicsThe term economics refers to the social sciences that studies production, distribution, and consumption of goods and services relating to an economic system.
Supply and DemandThe term supply refers to the varying amounts of a good is produced will supply at different prices; in general, a higher price yields a greater supply. The terms demand refers to the quantity of a good that is demanded by consumers at any given price. Therefore, the term supply and demand refers to the relation between two factors that determines the price of a commodity.
MicroeconomicsThe term microeconomics refers to the study of the components of a national economy, such as households and consumers.
MacroeconomicsThe term macroeconomics refers to the study of the overall aspect of a national economy, such as income and behavior of prices.
ElasticityIn economics, "elasticity refers to the measure of responsiveness of demand to a price change at a given point or between two given points on a single demand curve" (Jacobs, 1997, p. 55).
InelasticityIn economics, "inelasticity describes the situation in which the supply and demand for a good are unaffected when the price of the good or service changes" (Investopedia, 2008).
Gross Domestic Product (GDP)Gross domestic product refers to the amount of money of all final goods and services produced within defined geographic boundaries (Jacobs, 1997).
Economic and Healthcare Forces of Hospitalist MovementThe field of the hospitalist has seen a sharp increase over the last decade. Due to the increased efficiency, and the development...