Chapter 1

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  1. it is the study of the proper allocation and efficient use of scarce resources to produce commodities
  2. 2 main branches of economics
    • Macroeconomics
    • Microeconomics
  3. examines the behaviour of individual components
  4. examples of individual components
    • household
    • firm
    • individual ownership
    • how taxes affect peoples' work
  5. examines the behaviour of the economy as a whole
  6. view to understand interactions between economic aggregates
  7. examples of economic aggregates
    • national income
    • employment
    • inflation
  8. methodologies of economics
    • positive economics
    • normative economics
  9. analysis of economic behaviour that uses economic theory and empirical analysis to explain what is or what happened
    positive economics
  10. it does not value economic judgement
    positive economics
  11. incorporated ethics and value judgements about what the economy should be like or what policy actions should be recommended
    normative economics
  12. what out believes ought to be
    normative economics
  13. it deals with appropriateness of an economic outcome or policy
    normative economics
  14. 3 basic economic problems
    • what medical and non-medical goods and services should be produced and in what quantities?
    • how should these medical and non-medical goods ad services be produced?
    • for whom should these medical and non-medical goods and services be produced
  15. condition in which the optimal amount of output is produced given the underlying structure of social benefits and costs
    allocative efficiency
  16. refers to the value of what is given up by not pursuing the next best alternative
    opportunity cost
  17. condition in which one activity either production or consumption cannot be increased without reduction on another activity
    production efficiency
  18. the maximum output with a minimum input without sacrificing the quality
    optimum level
  19. it covers the inputs used in the production of goods and services
  20. four categories of economic resources
    • land
    • labor
    • capital
    • entrepreneur
  21. refers to naturally occurring materials of the earth that are used for the production of goods and services
  22. refers to available physical and mental talents of the people who have to produce goods and services
  23. the payment for land
  24. the payment for labor
  25. things that are tangible or physical goods that a person creates in the expectation that its use will improve or increase future production
  26. payment of capital
  27. people that are combining the three factors of production to create some product or services to sell
  28. payment for entrepreneurs
  29. set of economic institutions that dominate a given economy with the main objective of solving the basic economic problems
    economic system
  30. economic decisions are made with great influence from the past
    traditional economy
  31. a system whose past experiences which are handed down from generation to generation are used as bases for economic decisions
    traditional economic system
  32. the factor of production, distribution and allocation of health resources are owned and managed by the state
    command system
  33. would allocate health resources according to the consumers' purchasing behaiviour
    free market system
  34. a method/ place by which the one needing medical goods and services can communicate with the one producing medical goods and services
  35. combines the parts of commands system with the elements of free market
    mixed system
  36. making the optimal or best use of resources
  37. who coined the term efficiency
    Vilfredo Pareto
  38. when society is using its scarce resources to produce the highest possible quantity of goods and services that consumers wanted to buy
    economic efficiency
  39. two parts of economic efficiency
    • productive efficiency
    • allocative efficiency
  40. using the least amount of health resources to produce certain healthcare at the lowest possible cost
    productive efficiency
  41. to make one person better off without making someone else worse
    Pareto efficiency
  42. refers to the actions, treatment of others, or a general condition characterized by justice, fairness, and impartiality
  43. equal treatment of equal need
    horizontal equity
  44. individuals who are unequal should be treated differently
    vertical equity
Card Set:
Chapter 1
2014-07-02 17:07:24
Health Economics
Health Economics
Concept of economics
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