QUESTION IMAGE
Question
question 1 (1 point) providing free prescription medications for all patients who need them demonstrates horizontal equity vertical equity procedural equity distributional efficiency question 2 (1 point) which statement is not true? marginal analysis and average analysis lead to the similar outcomes. marginal analysis asks what happens if i do something a little more? marginal analysis is used to identify the optimal level of a good or activity. total benefit is maximized where marginal cost equals marginal benefit.
Question 1
- Horizontal equity: Treats people in the same situation (here, patients needing prescription meds) equally, providing free meds to all who need them fits this as they are similarly situated.
- Vertical equity is about different treatment for different needs (e.g., more support for poorer patients), which isn't the case here.
- Procedural equity is about fair processes, not distribution of goods.
- Distributional efficiency is about optimal resource allocation, not equal treatment.
- Marginal analysis focuses on incremental changes (asking "what if I do more"), is used to find optimal levels (where $MC = MB$ for max total benefit).
- Marginal and average analysis differ: marginal looks at the last unit, average at the mean. So "Marginal analysis and average analysis lead to the similar outcomes" is false.
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A. horizontal equity