Day 4 Session 2

Question 1

What is the problem of allocative efficiency?

Answer 1

What to find the best/optimal combination of outputs that can be achieve the highest level of satisfaction to the society

Question 2

What is the problem of technical efficiency?

Answer 2

Finding the best combination of inputs that can produce the highest level of output

Question 3

What does allocating a product entail?

Answer 3

• both efficiency and equity

Question 4

What is priority setting?

Answer 4

what products should be produced now & later

Question 5

What are the key notions of economics?

Answer 5

• scarcity of the resource and the need for making a choice
• opportunity cost
• benefit/utility to the individual verus the wider society (private vs external benefits)
• making analysis/decisions at the margin (marginal benefit vs costs)

Question 6

What is opportunity cost?

Answer 6

the ‘benefits forgone or sacrifice of the next best alternative of using a specific resource

Question 7

What were the three main strategies involved in tobacco control?

Answer 7

• taxation
• regulation
• subsidization

Question 8

What are the two key aspects that CEA measures?

Answer 8

• intermediate health outcomes (indicators)

- final health outcomes (health status)