Chapter 1

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  1. it is the study of the proper allocation and efficient use of scarce resources to produce commodities for the satisfaction of unlimited needs and wants of man
  2. Branches of Economics
    • Microeconomics
    • Macroeconomics
  3. examines the economic behavior of individual components with a view to understand decision-making in the face of scarcity and the consequences of these decisions
  4. examines the behavior of the economy as a whole with the view to understand interactions between economic aggregates
  5. Methodologies of Economics
    • Positive Economics
    • Normative Economics
  6. It is the analysis of economic behavior that uses economic theory and empirical analysis to explain what is or what happened
    Positive Economics
  7. It does not value economic judgement
    Positive Economics
  8. It incorporates ethics and value judgements about what the economy should be like or what particular policy actions should be recommended
    Normative economics
  9. It is concerned with what one believes ought to be and the appropriateness of the outcome or policy
    Normative Economics
  10. 3 Basic Economic Problems
    • Allocative Efficiency
    • Production Efficiency
    • Distribution
  11. A condition in which the optimal amount of output is produced given the underlying structure of social benefits and costs
    Allocative efficiency
  12. It refers to the value of what is given up by not choosing the next best alternative
    Opportunity cost
  13. The condition in which one activity, either production or consumption, cannot be increased without reduction on another activity
    Production efficiency
  14. It is the maximum output with a minimum input without sacrificing the quality
    Optimum level
  15. It answers the question, "Who should consume the produced goods and services?"
  16. Cover the inputs used in the production of goods and services
  17. What are the economic resources?
    • Land
    • Labor
    • Capital
    • Entrepreneur
  18. It refers to the naturally occurring materials of the earth that are used for the production of goods and services
  19. It is the payment for land
  20. It refers to the available physical and mental talents of the people who have to produce goods and services
  21. It is the payment for labor
  22. Things that are tangible or physical goods that a person creates in the expectation that its use will improve or increase future production
  23. It is the payment for capital
  24. Refers to the people combining the three factors of production to create some products or services to sell
  25. It is the payment for entrepreneurs
  26. It refers to a set of economic institutions that dominates a given economy with the main objective of solving the basic economic problems and proper allocation of health care services
    Economic system
  27. Is one whose economic decisions are made with the great influence from the past
    Traditional Economy
  28. Economic systems
    • Traditional Economy
    • Command System
    • Free market system
    • Mixed system
  29. The factor of production, distribution and allocation of health care resources are owned and managed by the state
    Command system
  30. It allocates health resources according to the consumers' purchasing behavior
    Free market system
  31. It describes any method by which or at which place, the one needing medical goods and services can communicate with the one producing medical goods and services
  32. It combines part of the command system with the elements of free market
    Mixed system
  33. it is about making the optimal or best use of resources
  34. Used the concept of efficiency in his studies of economic efficiency and income distribution
    Vilfredo Pareto
  35. It occurs when the society is using its scarce resources to produce the highest possible quantity of goods and services that consumers wanted to buy
    Economic efficiency
  36. two parts of economic efficiency
    • Productive efficiency
    • Allocative efficiency
  37. It is using the least amount of health resources to produce certain health care at the lowest possible cost
    Productive efficiency
  38. It is a condition in which the optimal amount of output is produced given the underlying structure of social benefits and costs
    Allocative efficiency
  39. Extra unit
    Marginal cost
  40. Benefit gained from consumption
    Marginal benefit
  41. Allocation of resources is said to be efficient if it is impossible to change that allocation to make one person better off without making someone else worse off
    Pareto efficiency
  42. It refers to actions, treatment of others, or a general condition characterized by justice, fairness, and impartiality.
  43. it is the equal treatment of equal need
    Horizontal Equity
  44. It is concerned with the extent to which individuals who are unequal should be treated differently
    Vertical Equity
Card Set:
Chapter 1
2014-07-23 16:26:11
Health economics
Health Economics
Concept of Economics
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