Economic Theories and Models in Health Care Health, Medicine, Nursing

NUR-621 Economic Theories and Models in Health Care
The purpose of this assignment is to describe economic theories and models in health care. Include your responses in the worksheet listed below and base your responses on evidence. Include references to your textbook and one scholarly article. The four theories/models are listed below. 
Theories/Models
Description/Definition Example Related to Health Care Components
1. Efficiency There are three efficiency theories applicable in healthcare; Pareto efficiency/Pareto, Kaldor–Hicks improvement, and Zero Profit Theorem. Pareto Optimality is a theory in which the initial allocation of goods among individuals changes to make an individual better without making anyone else worse (Barr, 2020). Kaldor-Hicks Efficiency is a theory in which the final outcome is viewed to be more effective if a Pareto optimal outcome is achieved by ensuring sufficient compensation to individuals and ensuring those who were worse do not become worse than they were initially (Sharma, Giri, Haque, & Tetteh, 2018). 
On the other hand, the Zero Profit Theory involves entry into an industry that is competitive, and this continues until all the opportunities available for gaining positive economic gains have been fully exploited or simply reduced to zero (Shalom, Wong, & Zaks, 2020). An example of application of Pareto Optimal is allocating more resources and attention to autistic patients without negatively affecting the other sectors within the healthcare sector. 
An example of a Kaldor-Hicks Efficiency scenario is allocating resources to different areas of healthcare and ensuring that neither of the policies implemented negatively affects the other. 
Zero Profit Theory is applicable in healthcare when new healthcare services are introduced in a region and ensures that it achieves its goals and objectives.  Products
Services
Outcomes on individuals
2. Supply and Demand The law of demand and supply in the market is a model which describes the interaction between the demand and supply of a certain product or service (Carnevale, Smith, & Gulish, 2020). The law generally claims that when supply is low, demand in the market goes up. This also explains why...