Health Economics For Developing Countries

Front 1

Explain Economics

Back 1

Economics is concerned with how scarce resources that have alternative uses are allocated among these uses

Front 2

Explain "Economics is the science of choice"

Back 2

the science that explains the choices that we make and how those choices change as we cope with scarcity

Front 3

Explain three economic approaches

Back 3

1. Determine factors that affect resource allocation decisions (choices and trade-offs)
2. Predict the effects of resource allocation decisions
3. Guide resource allocation decisions and priority-setting (costs and benefits)

Front 4

Explain the definition of "Production"

Back 4

The decision about what goods and services to produce and how much

Front 5

Explain the definition of "Distribution"

Back 5

The decision about who gets what goods and services and how much

Front 6

What is "Scarcity"

Back 6

There is not enough of the goods we desire to satisfy everyone’s wants

Front 7

What is "choices"

Back 7

– A choice is a tradeoff – we give up something to get something else

Front 8

What is "choices and benefits"

Back 8

We make choices by weighing costs and benefits

Front 9

What is the opportunity cost of a choice

Back 9

the value of the next highest valued alternative that was NOT chosen

Front 10

Explain "Administrarive"

Back 10

Production and distribution of goods/services based on administrative planning

Front 11

explain "Market"

Back 11

Producers and consumers decide on the production and distribution of goods and services based on opportunity costs

Front 12

Explain other ways of allocating resources

Back 12

Traditions, religious principles, or other societal norms

Front 13

What is "Market"

Back 13

Individuals coming together in the voluntary exchange of goods and services

Front 14

Explain three elements of Market

Back 14

1. Demand
2. Supply
3. Prices

Front 15

Explain about demand and supply framework

Back 15

The demand and supply is a basic tool that describes the interplay of buyers and sellers in a particular market

Front 16

The basic of demand and supply

Back 16

Buyers and sellers interact through the price mechanism
-Prices in a market are determined such that the quantity demanders wish to buy is equal to the quantity suppliers wish to sell-

Front 17

What is "Demand" (2)

Back 17

1. Choices individuals make about the goods and services they consume

2. The relationship between the price of a good or service and the amount people desire to purchase

Front 18

Descrive three elements of demand theory

Back 18

1. Individuals have preferences How do you allocate/divide the money you have between the different goods or services available to you?

2 Economists use the concept of utility to describe preferences

3 Individuals make consumption choices to maximize their utility subject to the budget constraint

Front 19

What is demand curve

Back 19

The relationship between the price and the quantity demanded, all else equal, or “ceteris paribus” (demand)

Front 20

What is Quantity demanded

Back 20

The amount of a good or service people desire to purchase (can afford) during a particular time at a particular point (point on the demand curve)

Front 21

Explain the law of demand

Back 21

The higher the price of a good, the lower the quantity demanded, ceteris paribus

As the price falls, some buyers buy more, and some individuals enter the market

Front 22

What is complement

Back 22

A complement is a good or service that is used together with another good or service

Front 23

What is substitute

Back 23

A good or service that is used in place of another good or service

Front 24

What are factors to determine the position of the demand curve

Back 24

1. Income
2. Other prices of related products
3. Insurance, which determines the “effective price”
4. Quality of product
5. Tastes and preferences
6. Other characteristics: age, sex, education

Front 25

What is supply

Back 25

1. The choices of individuals (firms) about what goods and services will be produced

2. The relationship between the price and the amount of a good or service suppliers will produce

Front 26

Explain elemnts of supply theory

Back 26

1. Production
-Suppliers combine inputs to produce a combination of outputs-

2 Costs of production
-Depends on price of inputs and technology (relationship between inputs and outputs)-

3 Profit maximization
Profit = Total Revenue – Total Cost

Front 27

Describe the supply curve

Back 27

The relationship between the price and the amount of a good or service suppliers are willing to produce; holding constant everything else (cost of inputs, level of technology, government regulation, etc.) or ceteris paribus” (supply)

Front 28

Describe quantiity supplied

Back 28

The amount of a good or service suppliers are willing (and able) to sell during a particular time at a particular price (point on a supply curve)

Front 29

Explain a law of supply

Back 29

The higher the price of a good, the more producers will be willing to supply, ceteris paribus

As the price rises, some sellers produce more, and more individuals (firms) enter the market

Front 30

Describe three factors to detemine the position of the supply curve

Back 30

1. Technology
2. Input prices
3. Price of other goods produced

Front 31

What is equilibrium

Back 31

Equilibrium is a combination of price and quantity exchanges such that supply is equal to demand

Front 32

Equilibrium determined by ?

Back 32

interaction between demand and supply schedules
*Price above equilibrium → excess supply
*suppliers will lower price
Price below equilibrium → excess demand
suppliers will increase price

Front 33

Five examples of market in health sector

Back 33

1. Health services market
2. Market for health workers (i.e. doctors, nurses)
3. Market for medical education
4. Health insurance market
5. Pharmaceutical market