95 Questions
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
What is the main focus of health economics when addressing the demand for health services?
Influences on healthcare and efficiency of scarce resources
How can emerging new health technologies contribute to the demand for health services exceeding supply?
By making untreatable and risky conditions manageable and treatable
What do economists believe can help solve the problem of demand for health services exceeding supply?
Market analysis and macroeconomic appraisal
Which factor contributes to the increased demand for health services as mentioned in the text?
Changes in consumer demand and attitude
What aspect of health economics can help health systems address questions about efficiency of scarce resources?
Planning, budgeting, regulation mechanisms
In what way can an ageing population contribute to the demand for health services exceeding supply?
By potentially requiring more health services
What is the main focus of allocative efficiency?
Deciding what services to produce
Which concept is associated with productive efficiency?
Optimizing the production process
What is the key difference between allocative efficiency and productive efficiency?
Outcome vs. process
In the context of healthcare, what does productive efficiency focus on?
Optimizing the production process
What does allocative efficiency aim to achieve in resource allocation?
Maximizing health outcomes
What is the primary concern of allocative efficiency in a healthcare context?
Maximizing health outcomes
How does productive efficiency differ from allocative efficiency in terms of scope?
Internal workings of healthcare providers vs. overall health needs of the population
What is the role of the physician in the demand for health care according to the text?
To influence the patient's demand for health care
How can health care be regarded?
As an investment good or service
In the formula C = (A x W) + (B X P), what does A represent?
Amount of time required to produce 1 unit
What is included in the total cost of a healthy day, as mentioned in the text?
The wages or income that would have been earned during the time spent obtaining care
What does the text imply about the patient's demand for health care?
It varies based on individual preferences and interactions with the physician
What factors contribute to the unit cost of producing one healthy day?
Individual's time and purchased inputs
Which aspect of health care does the formula C = (A x W) + (B x P) primarily focus on?
Unit cost to produce one healthy day
What is the role of a perfect agent in the context of medical care?
To prescribe and/or provide medical care that aligns with the patient's fully informed choices
What is the potential divergence of interest between the principal and the agent referred to as?
Supplier-induced demand
What limits the degree to which a physician can sway the patient with incomplete or misinformation?
Information sharing among patients and other providers
In what way does the assumption of perfect information about the patient's health status affect the productivity of medical care?
It distorts the productivity of medical care
What does information sharing among patients, among patients and other providers, or on the Internet limit?
The degree to which a physician can sway the patient with incomplete or misinformation
What does an advisor's role involve in relation to informing patients?
Informing patients of their level of health and potential treatments
Health economics is solely concerned with the allocation of unlimited resources within the health sector.
False
Economics is primarily about studying how society decides what, how, and for whom to produce.
True
In health economics, the study involves the analysis of decision-making by individuals but not by health care providers and governments.
False
The study of health economics does not involve the application of economic theory or models to the analysis of decision-making.
False
In health economics, efficiency in the production & consumption of health services is not a major concern.
False
The formula C = (A x W) + (B x P) mentioned in the text primarily relates to the study of health economics.
False
Health economics focuses on addressing questions about efficiency but does not involve the allocation of resources within the health sector.
False
The main concern of health economics is to fulfill infinite wants of consumers given limited resources.
False
Health economics is only concerned with the production of healthcare services, not the consumption.
False
Health economics emphasizes spending more money to achieve better outcomes.
False
The health care market is similar to other markets and does not experience any market failures.
False
As more resources are allocated to healthcare, there are more resources available for other goods and services in other sectors.
False
The issue of scarcity of resources in the health sector is not a concern for anyone working in the sector.
False
Health expenditure as a percentage of GDP was 10.89% in the year 2020 according to the World Bank.
True
Health economics does not consider the role of government in healthcare markets.
False
The text implies that health economics seeks to distribute healthcare services evenly across the population based on financial factors alone.
False
Scarcity refers to an infinite amount of resources and a finite desire for goods and services.
False
Allocative efficiency aims to achieve the production of outputs to satisfy people's wants.
False
Productive efficiency focuses on the efficient use of resources at the production stage.
True
Opportunity cost refers to the benefits of the next best alternative that is given up when making a choice.
True
Equity in economics refers to the concept of utilizing resources in the most efficient manner.
False
The problem of scarcity refers to a surplus of resources compared to the demand for goods and services.
False
Marginal analysis involves examining the additional benefits and costs from a decision.
True
In healthcare, nurses could replace doctors when appropriate to reduce staff productivity.
False
Technical efficiency aims to maximize the achievement of aims with unlimited resources.
False
Allocative efficiency focuses on producing the pattern of output that matches the pattern of consumer demand.
True
Improving equipment utilization is not a concern for technical efficiency in healthcare.
False
Cost-effective purchasing is not related to optimizing staffing in healthcare.
True
Opportunity cost refers to the benefits of choosing the next best alternative.
True
Meeting a given objective at least cost is an example of allocative efficiency.
False
Streamlining administrative and clinical processes is unrelated to optimizing staff in healthcare.
False
Achieving technical efficiency means maximizing benefits with unlimited resources.
False
Paediatric care and care of elderly patients illustrate opportunity cost in healthcare.
True
Health department expenditure possibilities are not related to productive efficiency in healthcare.
False
What is the main focus of productive efficiency in healthcare?
Optimizing the production process
Which aspect of healthcare does allocative efficiency primarily concern itself with?
Matching the pattern of consumer demand
What is Pareto efficiency in the context of resource distribution?
It ensures that no one individual is worse off
What distinguishes allocative efficiency from productive efficiency?
Focus on health outcomes vs. focus on production process
What is the primary concern of allocative efficiency in a healthcare context?
Maximizing health outcomes
How does allocative efficiency differ from productive efficiency in terms of scope?
Societal vs. process-oriented approaches
What does it mean to achieve allocative efficiency in resource allocation?
Distributing resources to meet population needs effectively
'Equilibrium Price' and 'Quantity Demand' are associated with which concept related to healthcare resource allocation?
'The Market'
What does allocative efficiency aim to achieve in the healthcare context?
Producing the pattern of output that matches consumer demand
What does an increase in the demand for health services contribute to?
Exceeding the supply of health services
What aspect of health economics can help health systems address questions about the efficiency of scarce resources?
Technical efficiency
What is included in the total cost of a healthy day as mentioned in the text?
Cost of treating patients
How can emerging new health technologies contribute to the demand for health services exceeding supply?
By increasing the scope and complexity of healthcare services
What does the formula C = (A x W) + (B x P) mentioned in the text primarily relate to?
Production of healthcare services
In the context of healthcare, what does productive efficiency focus on?
Maximizing benefits with unlimited resources
What is the role of a physician in the demand for health care according to the text?
Affecting patient demand through their clinical practice
What does the text imply about the demand curve for medical care?
It becomes less steep when immediate action is not required and there are substitutes available.
What is the implication of a reduction in consumption of medical care according to the text?
It may lead to a deterioration in health over multiple periods.
How should medical care be viewed according to the text?
As a spectrum of services and goods, rather than just an emergency service.
What relationship does the text mention between the price of medical care and the quantity demanded?
There is an inverse relationship between the out-of-pocket price and the quantity demanded of health care services.
What type of demand does visiting a family physician periodically to monitor one's condition represent according to the text?
Regular Check-Ups - Internal demand
What does 'external demand' for healthcare services refer to?
The demand by other members of society for an individual to consume health care services.
How is price relevant to the demand for healthcare services according to the text?
Price, especially out-of-pocket price, is relevant to the demand for many healthcare services.
What does Dn represent when there is a coinsurance rate according to the text?
The relation between quantity demanded and the out-of-pocket price.
What is the impact of vaccinations on public health and healthcare costs?
Reduce the spread of infectious diseases and protect public health, reducing healthcare costs
What is the social demand for medical care influenced by?
Individual's demand for their own consumption of health care services
How does society determine an individual's consumption of medical care?
Society values individual's use of medical services
What happens to an individual's demand for medical care when the quality of care increases?
Demand shifts outwards, increasing at each price of medical care
What does society's demand for aid in medical care represent?
The difference between individual's initial and shifted demand for medical care
What does an increase in demand for medical care with improved quality of care indicate about the demand curve?
It shifts outwards
What is the role of subsidies or other actions in relation to individual A's demand for medical services?
Increase A's demand to society’s level
What does society value that determines an individual's consumption of medical services?
The individual's use of medical services
What does societies demand for aid represent in relation to an individual’s demand for medical services?
The distance between individual’s initial and shifted demand for medical services.
What does the increased quantity demanded at each price of medical care indicate about the demand curve when the quality of care increases?
It shifts outwards.
Explore the demand for health care and the concept of health care as an investment or consumption good. Learn about the total cost of a healthy day including time involved in obtaining health care.
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