Suppose you are contemplating a career as a physician, and you hear the following news from your…

Suppose you are contemplating a career as a physician, and
you hear the following news from your country. Explain whether the following
news is “ good news ”or “ bad news ”for your decision to choose medicine as a
career. Good news means that the event increases your financial incentive to
become a physician, and vice versa for bad news. Discuss each case separately,
and justify your answers. Identify uncertainties that add ambiguity to the
analysis.

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a. The share of gross domestic product spent on health care
has increased substantially over time and is expected to increase in the
future. b. Payment reform will lead to a switch from fee-for-service payments
to a capitation plan. c. The government announces it will build a new medical
school in your state. d. The government announces it will implement national
health insurance that will provide comprehensive benefits to every citizen.

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