HealthEcon FINAL

Question 1

It refers to two or more goods which are jointly used for consumption purposes. Because these goods are consumed together, an increase in the price of one good inversely influences the demand for the other.

Answer 1

Complementary Medical Services

Question 2

It includes the monetary cost such as bus fare or gasoline plus the opportunity cost of time. Time cost accrue to traveling and expending delays in securing an appointment to a medical provider affects the quantity demanded for medical services.

Answer 2

Time Cost influences the Quantity Demanded for Medical Services

Question 3

It is a fact of life and the need for health care is difficult to predict

Answer 3

Uncertainty

Question 4

Any change in behavior as a
result of becoming insured. Usually the changes in the behavior that matter most are those that increase the pure premium of the insurance.

Answer 4

Moral Hazard

Question 5

It may increase the quantity demanded for intravenous fluid and tubing and blood products.

Answer 5

Disaster

Question 6

It represents the resources or inputs required to produce a good or service.

Answer 6

Cost

Question 7

Supply shifters

Answer 7

Cost
Technology
Economies of scale

Question 8

They are useful resource allocation mechanisms because they are automatic, responsive to changes in consumer preferences and, under perfect competition, allocatively efficient.

Answer 8

Markets

Question 9

Alongside _______, __________________ and ____________________, is the correction of ____________ is another reason for government intervention in the market.

Answer 9

1. Equity
2. Redistribution of wealth
3. Stabilization of macro economy
4. Market Failure

Question 10

Causes of Market Failure

Answer 10

Monopoly
Externalities
Public Good
Asymmetry of Information

Question 11

It is characterized by a single supplier in the market. It is a situation where one firm can meet market demand at a lower average cost than two or more firms could meet that demand.

Answer 11

Monopoly

Question 12

Monopoly can also occur as a result of?

Answer 12

Barriers to entry, few providers, and few close substitutes.

Question 13

It is a cost or a benefit arising from an economic transaction that falls on people who do not participate in the transaction.

Answer 13

Externalities

Question 14

2 types of externalities

Answer 14

Positive Externalities
Negative Externalities

Question 15

It is a good or service that can be consumed simultaneously by everyone (it is non-rival) and from which no individuals can be excluded (non-excludable).

Answer 15

Public Good

Question 16

It exists when one person in an economic transaction has more relevant information than the other person. It requires that the cost to the uninformed person of accessing this information is prohibitively high.

Answer 16

Asymmetry of Information

Question 17

Market failure occurs in health care insurance markets in the form of _________ and moral _________.

Answer 17

Adverse selection
Moral Hazard

Question 18

It is the process by which revenues are collected from primary and secondary sources, accumulated in fund pools and allocated to provider activities

Answer 18

Health System Financing

Question 19

It refers to the raising of funds either directly from individuals seeking health care or indirectly through governments or donors.

Answer 19

Revenue Collection

Question 20

It refers to the collection of funds that can be used for financing a given population’s health care so that contributors to the pool share risks.

Answer 20

Fund Pooling

Question 21

It is the process of allocating funds to the providers of health care.

Answer 21

Purchasing

Question 22

This is the simplest and earliest form of transaction between patient and provider.

Answer 22

Out-of-pocket payments

Question 23

This is where providers are paid by an insurance company or a government.

Answer 23

Third-party payments

Question 24

2 ways of paying health services

Answer 24

Out-of-pocket payments
Third-party payments

Question 25

They are seen to offer some potential for additional funding which, while not being significant in national terms, could offer individual facilities valuable additional income to fund mainly recurrent costs.

Answer 25

User Charges

Question 26

It can reduce the problems of reduced access for certain groups. But, it can be expensive to design and implement, reducing the net revenue obtained from charging.

Answer 26

Exemption mechanisms

Question 27

These schemes are becoming increasingly popular in developing countries. As with user charges the revenue can be valuable at the local and facility level, and the emphasis on cross subsidy can avoid some of the problems of equity encountered with user charges.

Answer 27

Community insurance

Question 28

This payment do not constitute an alternative funding source, their prevalence does indicate the size of the funding gap between what is officially covered and what can be afforded. External aid provides a critical source of health financing in many countries. Such dependency tends to increase uncertainty about the future flow of funds into the health sector.

Answer 28

Informal payment

Question 29

Options for funding health services

Answer 29

User charges
Exemption mechanisms
Community insurance
Informal charges

Question 30

Options for funding health services

Answer 30

User charges
Exemption mechanisms
Community insurance
Informal charges