International data show a positive correlation between income per person and the health of the population. explain how higher income might cause better health outcomes. explain how better health outcomes might cause higher income. how might the relative importance of your two hypotheses be relevant for public policy?

A) With higher income, people can better afford health facilities. They also have better access to good and nutritious food, clean water and appropriate medicine. Moreover, they are able to afford health insurance. Thus, a higher income is directly related to higher and better health outcome.

b) Better health outcome, in turn, will result in higher income. When people are healthy, they will take lesser days of sick leave, and their productivity will be higher. In good health, people tend to make better and more efficient decisions as well.

c) While formulating public policy, the relative importance of both health outcomes and higher incomes should be kept in mind. Since both are mutually dependent, the government should put forth policies that ensure both higher income for individuals and access to better health facilities. This can be done through subsidized health insurance as well as a better minimum wage policy.

Individuals with higher incomes have better access to Education, clean water, medical care, and good nutrition, and healthier individuals are likely to be more productive than sick ones. To put it simply, people with higher incomes had more opportunities to pursue good quality life compard to the people that born in lower income families.