Podcast
Questions and Answers
What is the life expectancy for people in the top third of income distribution?
What is the life expectancy for people in the top third of income distribution?
By how much has infant mortality decreased since 1960?
By how much has infant mortality decreased since 1960?
Which of the following is considered a significant determinant of health?
Which of the following is considered a significant determinant of health?
In 1960, what was the average life expectancy?
In 1960, what was the average life expectancy?
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What percentage of Canadian healthcare expenditures was consumed by hospitals in 2019?
What percentage of Canadian healthcare expenditures was consumed by hospitals in 2019?
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What percentage of total health care spending in Canada is publicly financed?
What percentage of total health care spending in Canada is publicly financed?
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Which of the following statements best describes private spending in Canada's health care system?
Which of the following statements best describes private spending in Canada's health care system?
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What is a key factor that influences system performance in healthcare?
What is a key factor that influences system performance in healthcare?
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What is the primary source of healthcare funding in Canada?
What is the primary source of healthcare funding in Canada?
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How does Canada rank in terms of healthcare expenditures financed by public sources among OECD countries?
How does Canada rank in terms of healthcare expenditures financed by public sources among OECD countries?
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What impact does higher public funding have on access to healthcare services?
What impact does higher public funding have on access to healthcare services?
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What does healthcare funding enable organizations to do?
What does healthcare funding enable organizations to do?
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What might exacerbate disparities in access to healthcare services?
What might exacerbate disparities in access to healthcare services?
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What is the primary impact of health care on individuals' utility?
What is the primary impact of health care on individuals' utility?
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Which of the following best defines 'health' in an economic context?
Which of the following best defines 'health' in an economic context?
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How do financing arrangements influence health care?
How do financing arrangements influence health care?
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What role do incentives play in marginal analysis?
What role do incentives play in marginal analysis?
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What does health care financing primarily encompass?
What does health care financing primarily encompass?
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Which of the following statements about barriers to incentives is accurate?
Which of the following statements about barriers to incentives is accurate?
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What aspect of health status is NOT commonly categorized in surveys?
What aspect of health status is NOT commonly categorized in surveys?
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Which of the following does NOT directly affect the burden of payment in healthcare?
Which of the following does NOT directly affect the burden of payment in healthcare?
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What should be the decision when the marginal benefit is greater than the marginal cost?
What should be the decision when the marginal benefit is greater than the marginal cost?
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Which of the following best describes the purpose of economic models?
Which of the following best describes the purpose of economic models?
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In the context of trade-offs in decision-making, what typically influences consumer choices?
In the context of trade-offs in decision-making, what typically influences consumer choices?
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Which of the following statements about the limitations of economic models is true?
Which of the following statements about the limitations of economic models is true?
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What role do incentives play in economic decision-making?
What role do incentives play in economic decision-making?
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What kind of trade-offs do individuals often face when making choices?
What kind of trade-offs do individuals often face when making choices?
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What is a characteristic of the ‘Grossman’ model of health capital?
What is a characteristic of the ‘Grossman’ model of health capital?
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Which of the following actions is recommended when considering whether to purchase a brand-name or generic drug?
Which of the following actions is recommended when considering whether to purchase a brand-name or generic drug?
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What is the definition of opportunity cost?
What is the definition of opportunity cost?
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Which of the following best illustrates the concept of opportunity cost?
Which of the following best illustrates the concept of opportunity cost?
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What is rational decision making primarily concerned with?
What is rational decision making primarily concerned with?
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Which of the following factors can help explain seemingly irrational behavior?
Which of the following factors can help explain seemingly irrational behavior?
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What is a key consideration in marginal analysis?
What is a key consideration in marginal analysis?
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How do opportunity costs influence public policy decisions?
How do opportunity costs influence public policy decisions?
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What role does utility play in rational decision making?
What role does utility play in rational decision making?
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Why might an individual choose not to access healthcare services even if they are labeled as 'free'?
Why might an individual choose not to access healthcare services even if they are labeled as 'free'?
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What is a primary focus of health care when viewed through the lens of equity?
What is a primary focus of health care when viewed through the lens of equity?
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What is a potential challenge of prioritizing equity in health care?
What is a potential challenge of prioritizing equity in health care?
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How do government subsidies or public provision influence health care access?
How do government subsidies or public provision influence health care access?
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According to the Rand Health Experiment, how does a lower coinsurance rate affect health care utilization?
According to the Rand Health Experiment, how does a lower coinsurance rate affect health care utilization?
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What does coinsurance represent in the context of health care costs?
What does coinsurance represent in the context of health care costs?
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If a person has a 40% coinsurance rate, how much would they pay for a doctor's visit costing $100?
If a person has a 40% coinsurance rate, how much would they pay for a doctor's visit costing $100?
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What effect does an increase in the coinsurance rate generally have on demand for non-essential care?
What effect does an increase in the coinsurance rate generally have on demand for non-essential care?
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What is a common concern about the efficiency of government-run health care systems?
What is a common concern about the efficiency of government-run health care systems?
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Study Notes
Introduction to Health Economics
- Health economics examines resource allocation within and to the health economy.
- It includes health care production and distribution across populations.
- The health sector significantly contributes to the overall economy.
- Improving health is a policy priority, leading to challenges in optimal policy.
- Economic factors play a role in many health issues.
Gross Domestic Product (GDP)
- GDP is the value of an economy's final goods and services.
Inflation
- Inflation is a rise in the prices of goods and services over time.
- This reduces the purchasing power of money.
- Inflation occurs when demand surpasses supply, increases production costs, or a general increase in money circulation in an economy.
Healthcare Expenditures
- Healthcare expenditure totals costs, including hospitals, medications, and insurance.
- This can be private (individual) or public (government).
- Healthcare spending is a significant part of GDP, which highlights its economic importance.
- For example, indicators for Canada demonstrate the proportion of national output allocated to healthcare systems and services, reflecting policy priorities and resource allocation.
Health Care as Share of GDP (2019)
- The graph compares healthcare spending as a proportion of GDP across OECD countries.
- Canada spends approximately 11% of its GDP on healthcare.
- This is higher than the OECD average but below the U.S. spending ratio (over 16%).
- Rising consumption of services, more advanced treatments, and rising health care costs influence spending in Canada.
Factors Contributing to Increased Health Care Spending:
- Increased utilization of health services (e.g., more tests, higher drug purchases).
- Higher-quality health services, which are more expensive.
- Faster price growth in health care, exceeding general inflation.
Key Features of Economic Analysis
- Scarcity of societal resources, requiring efficient allocation.
- Rational decision making: Individuals and groups aim to maximize benefits.
- Marginal analysis: Evaluation based on additional benefits and costs.
- Economic models: Simplified representations to understand behaviours and outcomes.
Scarcity of Resources
- Economic analysis assumes individuals must give up one resource to gain more of another.
Opportunity Cost
- Opportunity cost is the value of the next best alternative that one must sacrifice to choose a certain course of action.
- This includes tangible or intangible factors such as time.
Rational Decision Making
- Rationality is defined as making the best choices given available resources to achieve one’s desired goals.
Marginal Analysis
- Economic analysis often focuses on reasoning at the margin (next unit/decision).
- Decision-makers evaluate incremental costs and benefits.
- The marginal benefit must exceed the marginal cost for a decision to be considered.
Use of Models
- Economic models represent and analyze concepts.
- Models can use descriptive words, graphs, or mathematical equations.
- Models are simplified representations of real-world situations, meant to illustrate behaviours and outcomes.
Incentives
- Economic analysis emphasizes the role of incentives in driving behaviours (e.g., in buyers, sellers, consumers, firms, patients, physicians, hospitals, etc.)
- Incentives influence behaviour and decision-making in economic contexts.
Health vs Health Care
- Health encompasses physical and mental well-being, and is evaluated through the health status of individuals.
- Health care encompasses products and services necessary for maintaining health.
Health Care Delivery
- Key providers include physicians, hospitals, and pharmacies.
- Understanding providers, their services, quality of services, and the context (e.g., urban vs rural, demographic, socio-economic) is important.
Health Care Financing
- Health care financing is the process of raising and allocating revenue for health care services via various sources.
- Public finance (government taxes) and private financing play crucial roles in funding the system and determine who has access.
- The process affects how healthcare is used, how the burden of cost is distributed and influences new treatments' introductions.
Canadian Health Care System
- Health care is predominantly publicly financed and delivered by government.
- Universal coverage ensures equitable access to essential, medically necessary services.
- The Canada Health Act outlines criteria for provincial health insurance plans for receiving federal funding.
- Criteria include comprehensiveness, universality, portability, and accessibility.
Health Status in Canada
- Over time, life expectancy has increased while infant mortality rates have decreased significantly.
- Healthcare outcomes often differ by sex, income, and various other factors.
- Charts show data relating to life expectancy, mortality rates, and health outcomes, both across Canada and in comparison to other OECD nations.
Overall Health Improvements in Canada
- Life expectancy has significantly increased since 1960.
- Infant mortality is substantially decreased compared to rates in earlier years.
Physician (Doctor) Supply in Canada
- Canada has a physician (per 1,000 people) ratio similar to other OECD countries.
Hospital Beds (per 1000 people) in Canada
- Canada's hospital bed availability is lower than that of many other OECD nations.
Wait Times for Elective/Non-Emergency Surgery in Canada (2007)
- The data suggests that there are longer wait times for surgery in Canada as compared to other OECD countries.
Funding by Category in Canada (2019)
- Statistics related to hospital/physician spending and other sectors like pharmaceuticals are highlighted.
Circular Flow in Health Care
- Diagram that maps resource flows between governments, insurers, providers, and patients.
- This visual aids in understanding the dynamic interactions between all the actors.
Example: Do Prices Matter in Healthcare
- Prices influence consumer demand for healthcare, similar to other goods.
- Lower costs for healthcare increase the utilization of services. Higher costs for healthcare decrease the utilization of services.
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Description
Test your knowledge on the Canadian healthcare system, focusing on key statistics and determinants of health. This quiz covers aspects such as life expectancy, infant mortality, and healthcare funding sources in Canada. Understand the implications of public financing on healthcare access and performance.
