International data show a positive correlation between incom

International data show a positive correlation between income per person and the health of the population.              

A. explain how higher income might cause better health outcomes.        

B. Explain how better health outcomes might cause higher income

C. How might the relative importance of your two hypotheses be relevant for public policy?

Solution

a)

A higher income may lessen financial stress, at the same time being able to eat the right food and do more healthy activities like proper exercise. You may also be able to buy food supplements.

b)

With a better health, you can be more productive at work, and get more noticed by your boss and get a promotion. You also will have less absences. If you get paid for every bit of work, you can do more, so you earn more.

c)

With these, some public policies may be inclined towards the health of people, like taking care of nature, avoiding air pollution, and limit the number of overtime hours to let the employees rest.That way they will be more productive at work.

Also, there could be set a minimum wage for everyone to support their own health.