Video Cases - Part IV

These questions are based on videos from the Canadian Broadcasting Corporation that accompany the textbook. In addition to whatever in-class use your instructor may have given them, they're available on this website for online viewing. If directed to do so by your instructor, you can answer the questions online and email the results.
     These videos are intended only for students using the 9th Canadian Edition of Microeconomics. To view the video, you'll require a password. Refer to page 42 in your textbook and use the first word appearing in the main text column as both 'username' and 'password.' Use of the word is case-sensitive.
     The free RealPlayer plug-in is required in order to view the videos. If needed, the plug-in can be downloaded from Real.

Social Policy
     Synopsis: Based on Paul Martin's 1999 budget speech, this video addresses the subject of increased government spending on health care during a time when the Federal government has a significant budget surplus. The main theme, as discussed by a small panel of experts, is whether enough of the Federal government's surplus is being devoted to health care and social spending, as opposed to tax cuts and paying down Canada's massive debt. While watching the video, always be aware that the government has to make choices (spending on health care, social programs, paying down the debt, or providing tax cuts) in the face of scarcity (a limited surplus).
     Concepts Addressed in this Case Study: (a) Public goods (b) Private goods (c) Quasi-Public goods (d) Positive externalities (e) Privatization

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View Social Policy

1		Distinguish between the terms (a) Private goods (b) Public goods (c) Quasi-public goods
2		What type of good is health care? Choose from the selection in question number 1, and explain. (It might help to look up the characteristics of a public good)
3		Why does the government invest in health care and hospitals when it could exclude people from using them?
4		In the video, how do the panelists react to Paul Martin's introduction of the Child Tax Credit as a means of easing child poverty? Would it benefit the Canadian economy, and how?
5		In Canada, recently, some provincial governments have explored the possibility of allowing private hospitals to provide health care, for a fee, alongside public hospitals. Discuss some advantages and disadvantages of such privatization, using normative and positive statements in your answer.
6		In terms of public goods provision (like hospitals, schools, etc.), what is the opportunity cost of providing more tax cuts for individual households? Discuss.