Health Economics Flashcards
Externality
Spillover costs/benefits
E.g. one person immunised, others benefit
Technical efficiency
No greater output could be achieved for any given level of resources (input) - no wastage
Allocative efficiency
What to produce and when to satisfy greatest need
Diminishing marginal benefit
For each unit consumed, decreased desire for continuing units
Effective
Ability of program to meet objectives under real world conditions
Efficacy
Whether it was best under lab conditions
Efficient
Changes could not improve society
Cost effectiveness
$/consequences in natural physical units (lives saved, years of lives gained)
Cost utility analysis
$/quality of life (not natural units
Cost benefit analysis
%/maximise all available resources (consequences in monetary terms)
Opportunity costs
Value of benefits foregone by deciding to use the service
Monopsony
Single buyer in marker
Monopoly
Single seller in market
Utility
Determines the value that consumers place on their goods
Cost function
Relationship between costs of inputs and number of outputs
