In 2006, the United States uses fifteen percent of their gross domestic product on health care system Countries such as, Germany and Canada spent 11 and 15 percent respectively in the same year. This shows that America spends more than other high income countries. The increase in expenditure has contributed to the decrease in the number of infant mortality and improvement in cardiovascular health. However, when this expenditure is compared with that of Germany the scenario depicts productive inefficiency given the inputs bundles of doctors, capital, hospice cot and nurses. This is contributed by financial constrains, cost differentiation across ...
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