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Class Activity of
the Month
Lesson
Plan
The Rising Cost of Health Care:
Is there an explanation? |
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| Overview |
| In this lesson, students will
explore rising health care costs and the Law of Diminishing
Marginal Utility. Students
will participate in an activity that demonstrates the
Law of Diminishing Marginal Utility,
actively read the May 27, 2005 Economic Letter, and complete
a student handout. |
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| Economic Concepts Covered
in the Lesson Plan |
- Law of Diminishing Marginal Utility
- Opportunity Cost
- Utility
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| Student Objectives |
| Students will be able to: |
- Define opportunity cost, utility,
and the Law of Diminishing Marginal Utility.
- Apply the concept of diminishing
marginal utility to
the health care industry.
- Utilize the concept of trade-offs
and utility to explain the rising cost of health
care.
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| Time |
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| Materials |
1Economic Letters a The Economic Letter uses the term “marginal returns.” For the purposes of this exercise “marginal utility” and “marginal returns” are interchangeable. |
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