Health Economics and Policy Exam #2 Questions and Answers
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Health Economics
Health Economics and Policy Exam #2
Health Economics and Policy Exam #2
Health Economics and Policy Exam #2
Health Economics and Policy Exam #2
Health Economics and Policy Exam #2
Health Economics and Policy Exam #2
Health Economics and Policy Exam #2
Health Economics and Policy Exam ...
Health Economics and Policy Exam #2
Questions and Answers
Gross investment in health during period t:
✓ ~~~ Ijt = Ijt(Mjt, Tjt, Cjt, Ajt, Bjt)
✓ - Where I = investment in health
✓ - M = medical care services
✓ - T = time spent improving health
✓ - C = human capital stock
✓ - A = age
✓ - B = behavior (lifestyle)
lower health status and lower spending =
✓ ~~~ lower quality demanded
production of health model
✓ ~~~ - Hypothesized relationship yields a positively sloping function
✓ - Health status increases with medical care spending
✓ - After level Q* of spending, the production function has a negative slope
✓ - Medical care spending beyond this point yields net harm to patient
A change to which of the following inputs will cause a shift in the total product curve?
a. Behavior
b. Age
c. Medical care spending
d. Human capital stock
✓ ~~~ a, b, d
Determinants of Health
, ✓ ~~~ 1. Income and Education: Higher socioeconomic status may indicate better access
to medical care, and so better health
2. Environment and Lifestyle: Environmental pollution has a strong negative effect on
human life and the quality of life (bad health exposure is everywhere)
3. Genetics: There is a risk of exposure to a disease (public health) as well as the
ability to resist and recover from the disease (genetics) and Hereditary factor in
predisposition to certain diseases
Public Health - The state provides services important to health, such as:
✓ ~~~ Water purification, sewage treatment, immunization programs, quarantines, clean air
standards, food safety
John Snow
✓ ~~~ - (obstetrician) identified water as the source
- Waterborne disease, not airborne
- Used mapping to determine the exact location of the water source
Which of the following statements about income and education and their effect on
health is most correct?
a. Low income leads directly to poor health.
b. Higher socioeconomic status leads to better medical care access.
c. There is a direct and causal effect between schooling and better health.
d. Socioeconomic status does not affect health.
✓ ~~~ B
, Mortality Rates
✓ ~~~ • Defined as number of deaths per 100,000
• Often reduced to subgroups of age, sex, and race for comparison
• Male and female life expectancies at birth and infant mortality other common
indicators
• Overall poor indicator of quality of life
• Low crude mortality rate does not always reflect a healthy population
Morbidity Rates
✓ ~~~ - Prevalence of certain diseases or medical conditions
- Common measures include restricted activity days due to illness, the incidence rate
of certain chronic conditions, and a self-assessment of health status
Newhouse and Friedlander (1980) used six measures to analyze the health status of
a region in relation to the medical services available:
✓ ~~~ - Index combining quality of life and survival duration
- Can be used to set allocation priorities within a single program (i.e.,waitlist to
receive a kidney, different with every personal condition)
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