Demand for Health Care and Total Cost
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Questions and Answers

What are some of the reasons for the continued demand for health services exceeding supply?

  • Ageing population, emerging new health technologies, and increased people expectations (correct)
  • Decreasing population, outdated health technologies, and decreased people expectations
  • Emerging new health technologies, decreasing government funding, and increased people expectations
  • Ageing population, increasing government funding, and stable people expectations

    • What is the main focus of health economics when addressing the demand for health services?

  • Supply of healthcare and macroeconomic appraisal
  • Influences on healthcare and efficiency of scarce resources (correct)
  • Market analysis and micro-economic appraisal
  • Planning, budgeting, regulation mechanisms

    • How can emerging new health technologies contribute to the demand for health services exceeding supply?

  • By decreasing the need for health services
  • By increasing the supply of healthcare services
  • By making untreatable and risky conditions manageable and treatable (correct)
  • By reducing the ageing population

    • What do economists believe can help solve the problem of demand for health services exceeding supply?

    <p>Market analysis and macroeconomic appraisal (B)</p> Signup and view all the answers

    Which factor contributes to the increased demand for health services as mentioned in the text?

    <p>Changes in consumer demand and attitude (D)</p> Signup and view all the answers

    What aspect of health economics can help health systems address questions about efficiency of scarce resources?

    <p>Planning, budgeting, regulation mechanisms (B)</p> Signup and view all the answers

    In what way can an ageing population contribute to the demand for health services exceeding supply?

    <p>By potentially requiring more health services (B)</p> Signup and view all the answers

    What is the main focus of allocative efficiency?

    <p>Deciding what services to produce (C)</p> Signup and view all the answers

    Which concept is associated with productive efficiency?

    <p>Optimizing the production process (D)</p> Signup and view all the answers

    What is the key difference between allocative efficiency and productive efficiency?

    <p>Outcome vs. process (D)</p> Signup and view all the answers

    In the context of healthcare, what does productive efficiency focus on?

    <p>Optimizing the production process (C)</p> Signup and view all the answers

    What does allocative efficiency aim to achieve in resource allocation?

    <p>Maximizing health outcomes (B)</p> Signup and view all the answers

    What is the primary concern of allocative efficiency in a healthcare context?

    <p>Maximizing health outcomes (B)</p> Signup and view all the answers

    How does productive efficiency differ from allocative efficiency in terms of scope?

    <p>Internal workings of healthcare providers vs. overall health needs of the population (A)</p> Signup and view all the answers

    What is the role of the physician in the demand for health care according to the text?

    <p>To influence the patient's demand for health care (D)</p> Signup and view all the answers

    How can health care be regarded?

    <p>As an investment good or service (A)</p> Signup and view all the answers

    In the formula C = (A x W) + (B X P), what does A represent?

    <p>Amount of time required to produce 1 unit (A)</p> Signup and view all the answers

    What is included in the total cost of a healthy day, as mentioned in the text?

    <p>The wages or income that would have been earned during the time spent obtaining care (A)</p> Signup and view all the answers

    What does the text imply about the patient's demand for health care?

    <p>It varies based on individual preferences and interactions with the physician (A)</p> Signup and view all the answers

    What factors contribute to the unit cost of producing one healthy day?

    <p>Individual's time and purchased inputs (C)</p> Signup and view all the answers

    Which aspect of health care does the formula C = (A x W) + (B x P) primarily focus on?

    <p>Unit cost to produce one healthy day (C)</p> Signup and view all the answers

    What is the role of a perfect agent in the context of medical care?

    <p>To prescribe and/or provide medical care that aligns with the patient's fully informed choices (C)</p> Signup and view all the answers

    What is the potential divergence of interest between the principal and the agent referred to as?

    <p>Supplier-induced demand (D)</p> Signup and view all the answers

    What limits the degree to which a physician can sway the patient with incomplete or misinformation?

    <p>Information sharing among patients and other providers (C)</p> Signup and view all the answers

    In what way does the assumption of perfect information about the patient's health status affect the productivity of medical care?

    <p>It distorts the productivity of medical care (D)</p> Signup and view all the answers

    What does information sharing among patients, among patients and other providers, or on the Internet limit?

    <p>The degree to which a physician can sway the patient with incomplete or misinformation (D)</p> Signup and view all the answers

    What does an advisor's role involve in relation to informing patients?

    <p>Informing patients of their level of health and potential treatments (A)</p> Signup and view all the answers

    Health economics is solely concerned with the allocation of unlimited resources within the health sector.

    <p>False (B)</p> Signup and view all the answers

    Economics is primarily about studying how society decides what, how, and for whom to produce.

    <p>True (A)</p> Signup and view all the answers

    In health economics, the study involves the analysis of decision-making by individuals but not by health care providers and governments.

    <p>False (B)</p> Signup and view all the answers

    The study of health economics does not involve the application of economic theory or models to the analysis of decision-making.

    <p>False (B)</p> Signup and view all the answers

    In health economics, efficiency in the production & consumption of health services is not a major concern.

    <p>False (B)</p> Signup and view all the answers

    The formula C = (A x W) + (B x P) mentioned in the text primarily relates to the study of health economics.

    <p>False (B)</p> Signup and view all the answers

    Health economics focuses on addressing questions about efficiency but does not involve the allocation of resources within the health sector.

    <p>False (B)</p> Signup and view all the answers

    The main concern of health economics is to fulfill infinite wants of consumers given limited resources.

    <p>False (B)</p> Signup and view all the answers

    Health economics is only concerned with the production of healthcare services, not the consumption.

    <p>False (B)</p> Signup and view all the answers

    Health economics emphasizes spending more money to achieve better outcomes.

    <p>False (B)</p> Signup and view all the answers

    The health care market is similar to other markets and does not experience any market failures.

    <p>False (B)</p> Signup and view all the answers

    As more resources are allocated to healthcare, there are more resources available for other goods and services in other sectors.

    <p>False (B)</p> Signup and view all the answers

    The issue of scarcity of resources in the health sector is not a concern for anyone working in the sector.

    <p>False (B)</p> Signup and view all the answers

    Health expenditure as a percentage of GDP was 10.89% in the year 2020 according to the World Bank.

    <p>True (A)</p> Signup and view all the answers

    Health economics does not consider the role of government in healthcare markets.

    <p>False (B)</p> Signup and view all the answers

    The text implies that health economics seeks to distribute healthcare services evenly across the population based on financial factors alone.

    <p>False (B)</p> Signup and view all the answers

    Scarcity refers to an infinite amount of resources and a finite desire for goods and services.

    <p>False (B)</p> Signup and view all the answers

    Allocative efficiency aims to achieve the production of outputs to satisfy people's wants.

    <p>False (B)</p> Signup and view all the answers

    Productive efficiency focuses on the efficient use of resources at the production stage.

    <p>True (A)</p> Signup and view all the answers

    Opportunity cost refers to the benefits of the next best alternative that is given up when making a choice.

    <p>True (A)</p> Signup and view all the answers

    Equity in economics refers to the concept of utilizing resources in the most efficient manner.

    <p>False (B)</p> Signup and view all the answers

    The problem of scarcity refers to a surplus of resources compared to the demand for goods and services.

    <p>False (B)</p> Signup and view all the answers

    Marginal analysis involves examining the additional benefits and costs from a decision.

    <p>True (A)</p> Signup and view all the answers

    In healthcare, nurses could replace doctors when appropriate to reduce staff productivity.

    <p>False (B)</p> Signup and view all the answers

    Technical efficiency aims to maximize the achievement of aims with unlimited resources.

    <p>False (B)</p> Signup and view all the answers

    Allocative efficiency focuses on producing the pattern of output that matches the pattern of consumer demand.

    <p>True (A)</p> Signup and view all the answers

    Improving equipment utilization is not a concern for technical efficiency in healthcare.

    <p>False (B)</p> Signup and view all the answers

    Cost-effective purchasing is not related to optimizing staffing in healthcare.

    <p>True (A)</p> Signup and view all the answers

    Opportunity cost refers to the benefits of choosing the next best alternative.

    <p>True (A)</p> Signup and view all the answers

    Meeting a given objective at least cost is an example of allocative efficiency.

    <p>False (B)</p> Signup and view all the answers

    Streamlining administrative and clinical processes is unrelated to optimizing staff in healthcare.

    <p>False (B)</p> Signup and view all the answers

    Achieving technical efficiency means maximizing benefits with unlimited resources.

    <p>False (B)</p> Signup and view all the answers

    Paediatric care and care of elderly patients illustrate opportunity cost in healthcare.

    <p>True (A)</p> Signup and view all the answers

    Health department expenditure possibilities are not related to productive efficiency in healthcare.

    <p>False (B)</p> Signup and view all the answers

    What is the main focus of productive efficiency in healthcare?

    <p>Optimizing the production process (D)</p> Signup and view all the answers

    Which aspect of healthcare does allocative efficiency primarily concern itself with?

    <p>Matching the pattern of consumer demand (C)</p> Signup and view all the answers

    What is Pareto efficiency in the context of resource distribution?

    <p>It ensures that no one individual is worse off (A)</p> Signup and view all the answers

    What distinguishes allocative efficiency from productive efficiency?

    <p>Focus on health outcomes vs. focus on production process (B)</p> Signup and view all the answers

    What is the primary concern of allocative efficiency in a healthcare context?

    <p>Maximizing health outcomes (A)</p> Signup and view all the answers

    How does allocative efficiency differ from productive efficiency in terms of scope?

    <p>Societal vs. process-oriented approaches (D)</p> Signup and view all the answers

    What does it mean to achieve allocative efficiency in resource allocation?

    <p>Distributing resources to meet population needs effectively (B)</p> Signup and view all the answers

    'Equilibrium Price' and 'Quantity Demand' are associated with which concept related to healthcare resource allocation?

    <p>'The Market' (A)</p> Signup and view all the answers

    What does allocative efficiency aim to achieve in the healthcare context?

    <p>Producing the pattern of output that matches consumer demand (A)</p> Signup and view all the answers

    What does an increase in the demand for health services contribute to?

    <p>Exceeding the supply of health services (B)</p> Signup and view all the answers

    What aspect of health economics can help health systems address questions about the efficiency of scarce resources?

    <p>Technical efficiency (A)</p> Signup and view all the answers

    What is included in the total cost of a healthy day as mentioned in the text?

    <p>Cost of treating patients (A)</p> Signup and view all the answers

    How can emerging new health technologies contribute to the demand for health services exceeding supply?

    <p>By increasing the scope and complexity of healthcare services (C)</p> Signup and view all the answers

    What does the formula C = (A x W) + (B x P) mentioned in the text primarily relate to?

    <p>Production of healthcare services (C)</p> Signup and view all the answers

    In the context of healthcare, what does productive efficiency focus on?

    <p>Maximizing benefits with unlimited resources (C)</p> Signup and view all the answers

    What is the role of a physician in the demand for health care according to the text?

    <p>Affecting patient demand through their clinical practice (D)</p> Signup and view all the answers

    What does the text imply about the demand curve for medical care?

    <p>It becomes less steep when immediate action is not required and there are substitutes available. (A)</p> Signup and view all the answers

    What is the implication of a reduction in consumption of medical care according to the text?

    <p>It may lead to a deterioration in health over multiple periods. (D)</p> Signup and view all the answers

    How should medical care be viewed according to the text?

    <p>As a spectrum of services and goods, rather than just an emergency service. (D)</p> Signup and view all the answers

    What relationship does the text mention between the price of medical care and the quantity demanded?

    <p>There is an inverse relationship between the out-of-pocket price and the quantity demanded of health care services. (A)</p> Signup and view all the answers

    What type of demand does visiting a family physician periodically to monitor one's condition represent according to the text?

    <p>Regular Check-Ups - Internal demand (D)</p> Signup and view all the answers

    What does 'external demand' for healthcare services refer to?

    <p>The demand by other members of society for an individual to consume health care services. (A)</p> Signup and view all the answers

    How is price relevant to the demand for healthcare services according to the text?

    <p>Price, especially out-of-pocket price, is relevant to the demand for many healthcare services. (B)</p> Signup and view all the answers

    What does Dn represent when there is a coinsurance rate according to the text?

    <p>The relation between quantity demanded and the out-of-pocket price. (B)</p> Signup and view all the answers

    What is the impact of vaccinations on public health and healthcare costs?

    <p>Reduce the spread of infectious diseases and protect public health, reducing healthcare costs (C)</p> Signup and view all the answers

    What is the social demand for medical care influenced by?

    <p>Individual's demand for their own consumption of health care services (C)</p> Signup and view all the answers

    How does society determine an individual's consumption of medical care?

    <p>Society values individual's use of medical services (D)</p> Signup and view all the answers

    What happens to an individual's demand for medical care when the quality of care increases?

    <p>Demand shifts outwards, increasing at each price of medical care (A)</p> Signup and view all the answers

    What does society's demand for aid in medical care represent?

    <p>The difference between individual's initial and shifted demand for medical care (A)</p> Signup and view all the answers

    What does an increase in demand for medical care with improved quality of care indicate about the demand curve?

    <p>It shifts outwards (D)</p> Signup and view all the answers

    What is the role of subsidies or other actions in relation to individual A's demand for medical services?

    <p>Increase A's demand to society’s level (B)</p> Signup and view all the answers

    What does society value that determines an individual's consumption of medical services?

    <p>The individual's use of medical services (B)</p> Signup and view all the answers

    What does societies demand for aid represent in relation to an individual’s demand for medical services?

    <p>The distance between individual’s initial and shifted demand for medical services. (A)</p> Signup and view all the answers

    What does the increased quantity demanded at each price of medical care indicate about the demand curve when the quality of care increases?

    <p>It shifts outwards. (A)</p> Signup and view all the answers

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