Economic Outcomes Assessment Quiz

Questions and Answers

Which of the following best describes opportunity cost?

The cost of resources consumed by a program or treatment

The direct costs associated with a healthcare intervention

The total cost of production in a given time frame

The lost value of alternatives when a resource is used for a specific purpose (correct)

What type of costs remain constant regardless of the level of output in the short run?

Fixed costs (correct)

Variable costs

Incremental costs

Direct costs

What type of costs are incurred as a result of changes in production capacity due to illness?

Direct costs

Incremental costs

Indirect costs (correct)

Fixed costs

Which of the following is considered a direct non-medical cost?

Transportation to healthcare facilities Signup and view all the answers

What distinguishes incremental costs from other types of costs?

They are additional costs to obtain further benefits from an alternative strategy. Signup and view all the answers

Which of the following is NOT a direct medical cost?

Transportation to appointments Signup and view all the answers

What is the relationship between fixed costs and output in the short run?

They remain unchanged regardless of output level. Signup and view all the answers

Which of the following would be classified as a variable cost in a healthcare setting?

Laboratory test fees based on the number of tests ordered Signup and view all the answers

Study Notes

Economic Outcomes Assessment

Economic outcomes assessment evaluates the costs associated with programs or treatments.

Cost Definitions

Fixed Costs:
- Do not vary with output in the short term (around one year).
- Include expenditures such as rent and certain salaries.
Variable Costs:
- Change with the level of output.
- Examples include supplies and service fees.
Incremental Costs:
- Additional expenses incurred to achieve more benefits from alternative strategies.
Opportunity Cost:
- Represents forgone benefits from using resources in a specific way instead of its best alternative.
- Central concept in economics illustrating lost opportunities, crucial for resource allocation.

Direct Costs:
- Resources used in preventing or treating disease.
- Direct Medical Costs:
  - Associated with immediate medical care expenses like hospital stays, medications, and tests.
- Direct Non-Medical Costs:
  - Costs outside of medical care, such as transportation and family care due to illness.
Indirect Costs:
- Costs linked to changes in productivity due to disease or health interventions.
- Morbidity Costs:
  - Result from lost productivity when individuals miss work due to illness.
- Mortality Costs:
  - Financial impact arising from premature death leading to loss of potential labor.
Intangible Costs:
- Represent non-financial effects of illness and medical care, difficult to quantify.
- Include pain and suffering, reflecting qualitative impacts that cannot be assigned a monetary value.

Description

Test your knowledge on economic outcomes assessment, focusing on the various cost definitions such as fixed costs, variable costs, and incremental costs. This quiz will help you understand how these costs impact program evaluations and decision-making processes.