Scope of Health Economics Quiz
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Questions and Answers

What distinguishes needs from wants?

  • Needs are associated with clear negative outcomes if deficient, while wants are not. (correct)
  • Wants are subjective and psychological, while needs are objective and physical.
  • Needs require desire to pay for goods and services, while wants do not.
  • Wants are necessary for survival, while needs are optional.
  • What is demand according to the text?

  • The ability and desire to pay for goods and services. (correct)
  • A curve illustrating the relationship between the price of a product and the quantity demanded, all other things being equal.
  • The quantity of a product people are willing to buy at a certain price.
  • The desire and actual effort involved in bridging the gap between optimal health and ill health.
  • What is the relationship described by the demand curve?

  • The positive relationship between price and quantity demanded.
  • The inverse relationship between the price of a product and the quantity demanded. (correct)
  • The relationship between price and consumer preferences.
  • The direct correlation between price and quantity supplied.
  • In health demand, what does demand reflect?

    <p>The utilization of health care services to meet health needs.</p> Signup and view all the answers

    What is reflected by a high demand according to the text?

    <p>Increased supply of wants by the for-profit sector and governments.</p> Signup and view all the answers

    How is the quantity demanded defined?

    <p>The amount of a product people are willing to buy at a certain price.</p> Signup and view all the answers

    What is the basic principle of the law of demand?

    <p>The higher the price, the lower the demand.</p> Signup and view all the answers

    How does the law of supply differ from the law of demand?

    <p>The law of supply shows a positive relationship between price and quantity supplied.</p> Signup and view all the answers

    What is the relationship between supply and demand in a market?

    <p>Supply and demand can be equal.</p> Signup and view all the answers

    What happens when a market is at equilibrium?

    <p>The allocation of goods is at its most efficient and there is no tendency for the market price to change.</p> Signup and view all the answers

    Why do producers supply more at a higher price?

    <p>To increase revenue.</p> Signup and view all the answers

    What is the definition of market equilibrium?

    <p>When quantity supplied and quantity demanded are equal.</p> Signup and view all the answers

    What is the primary focus of health economics?

    <p>Analyzing the production, distribution, and consumption of healthcare goods and services</p> Signup and view all the answers

    What differentiates a 'need' from a 'want' in health economics?

    <p>A 'need' is a physiological or biological requirement, while a 'want' is a non-essential desire.</p> Signup and view all the answers

    Which of the following best describes the role of the public sector in filling societal needs?

    <p>Filling 'needs' by providing essential services such as roads and schools</p> Signup and view all the answers

    Which of the following is not a distinct topic covered within the scope of health economics?

    <p>The creation and distribution of wealth</p> Signup and view all the answers

    Which of the following is a common example of a 'need' in health economics?

    <p>Basic medical services</p> Signup and view all the answers

    What role does Maslow's hierarchy of needs play in health economics?

    <p>Maslow's hierarchy of needs is not relevant to health economics.</p> Signup and view all the answers

    What is the definition of demand in the context of a marketplace?

    <p>The summation at each price of the quantity demanded by each individual</p> Signup and view all the answers

    What occurs in a market when there is an increase in demand?

    <p>The demand curve shifts to the right</p> Signup and view all the answers

    What causes a change in the quantity demanded?

    <p>A change in the price of the good</p> Signup and view all the answers

    Which of the following is not a determinant of demand?

    <p>Market competition</p> Signup and view all the answers

    How does a demand curve account for a change in demand?

    <p>A shift of the demand curve to the right indicates an increase in demand</p> Signup and view all the answers

    What are the three main factors that influence health service utilization?

    <p>population health needs, their ability to pay, and availability of services</p> Signup and view all the answers

    What is the Law of Demand?

    <p>A claim that the quantity demanded of a good falls when the price of the good rises, other things equal</p> Signup and view all the answers

    What does a demand curve show?

    <p>The relationship between the price of a good and the quantity demanded</p> Signup and view all the answers

    What happens to the quantity demanded when the price of a good increases, according to the Law of Demand?

    <p>It decreases</p> Signup and view all the answers

    What is the difference between individual demand and market demand?

    <p>Individual demand is the demand of a single consumer, while market demand is the sum of all individual demands</p> Signup and view all the answers

    What is the shape of the demand curve, according to the Law of Demand?

    <p>Downward sloping</p> Signup and view all the answers

    Study Notes

    Law of Demand

    • States that, if all other factors remain equal, the higher the price of a good, the less people will demand that good
    • The demand relationship curve illustrates the negative relationship between price and quantity demanded

    Law of Supply

    • Demonstrates the quantities that will be sold at a certain price
    • The supply relationship shows an upward slope, meaning that the higher the price, the higher the quantity supplied

    Supply and Demand Relationship

    • When supply and demand are equal, the economy is said to be at equilibrium
    • At equilibrium, the allocation of goods is at its most efficient because the amount of goods being supplied is exactly the same as the amount of goods being demanded

    Equilibrium

    • An equilibrium is the condition that exists when quantity supplied and quantity demanded are equal
    • At equilibrium, there is no tendency for the market price to change
    • Everyone (individuals or countries) is satisfied with the current economic condition

    Needs and Wants

    • Needs are distinguished from wants because a deficiency would cause a clear negative outcome, such as dysfunction or death
    • Needs can be objective and physical (e.g., food) or subjective and psychological (e.g., the need for self-esteem)

    Demand

    • A schedule or curve that shows the various amounts of a product that consumers will buy at each of a series of possible prices during a specific period
    • Refers to the ability and desire to pay for goods and services
    • The quantity demanded is the amount of a product people are willing to buy at a certain price

    Health Demand

    • The desire and actual effort involved in attempting to bridge the gap between optimal health and ill health through the utilization of health care services
    • Reflects the demand of all consumers in the marketplace for a particular good or service

    Changes in Demand

    • An increase in demand means that, at each and every price, more of the good is demanded
    • A change in quantity demanded is not a change in demand; it is a movement along the demand curve
    • A change in demand shifts the demand curve

    Determinants of Demand

    • Changes in consumer income
    • Changes in prices of related goods
    • Changes in consumer expectations
    • Changes in the number or composition of consumers
    • Changes in consumer tastes

    Supply

    • A schedule or curve showing the amounts of a product that firms are willing to make available for sale at each of a series of possible prices during a specific period
    • The amount of a product or service that firms are willing to sell at alternative prices

    Health Economics

    • The scope of health economics involves distinct topics, including:
      • What influences health (other than health care)
      • What is health and what is its value
      • The need for health care
      • The demand for health care
      • The supply of health care
      • Micro-economic evaluation at treatment level
      • Market equilibrium
      • Planning, budgeting, and monitoring mechanisms

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    Description

    Test your understanding of the scope of health economics including topics like factors influencing health, the value of health, demand and supply of health care, micro-economic evaluation, market equilibrium, and planning mechanisms. Learn about the various aspects of health economics in this quiz.

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