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Why not leave health care to the market?
Most people believe that you cannot buy and sell health care like other goods and services. They believe that health care is different. This is what is sometimes called a "common-sense" approach to the issue. Look at the first activity in Questions and Activities to develop this idea further.
Economists approach the same question rather differently. They analyse the question of health care and markets from a theoretical perspective. The main theory they use is called market failure.
In this unit we will look at the issue of market failure in general and then look in detail at the problems that health care markets face. After that we will look at the issue of equity again.
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