Health Economics

Question 1

Define Allocative Efficiency

Answer 1

Assesses competing programs and judges whether they meet society needs

Question 2

Define Cost-Benefit Analysis

Answer 2

An economic evaluation in which all costs and consequences are expressed in same units, usually money
Used to determine allocative efficiency

Question 3

Define Cost Effectiveness Analysis

Answer 3

An economic evaluation in which costs and consequences of alternative interventions are expressed as cost per unit health outcome
USed to determine technical efficiency

Question 4

Define Cost Utility Analysis

Answer 4

Economic evaluation which produces different consequences expressed as ‘utilities’
EG QALY

Question 5

Define Opportunity Cost

Answer 5

Value of opportunity forgone (next best) as a result of engaging resources in an activity

Question 6

Define Technical Efficiency

Answer 6

Assesses whether a given output is achieved by using least possible combination of inputs