Macroeconomics 8th Edition by David Colander

Exercise 5

In the Oregon health care plan for rationing Medicaid expenditures, therapy to slow the progression of AIDS and treatment for brain cancer were covered, while liver transplants and treatment for infectious mononucleosis were not covered.
a.What criteria do you think were used to determine what was covered and what was not covered?
b.Should an economist oppose the Oregon plan because it involves rationing?
c.How does the rationing that occurs in the market differ from the rationing that occurs in the Oregon plan?LO1