Role of Government in Health and Medical Care

There are many externalities in this case. One type of externality is called the free rider. Free riders are individuals who will receive benefits from an activity without having to pay for it themselves. Society will benefit from the Northwest Veterans’ Home in several ways, and not all members of the society will have to help fund the project. An example of asking more citizens to help pay this cost may be an effort to have the operation of the Northwest Veteran’s Home to be funded by a county sales tax. In that case, anyone who would shop in the county would directly help fund the veteran’s home in the county tax that they pay. Discuss possible externalities and probable ways that the beneficiaries of the externalities may be persuaded to reimburse the state for these important health services delivered to the veterans.

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