Health Economics — MCQs

Q: Monetary benefit is measured in which of the following?

Cost-benefit analysis. ### Explanation In health economics, different types of evaluation methods are used to compare the costs and consequences of healthcare interventions. **Why Cost-Benefit Analysis (CBA) is correct:** Cost-Benefit Analysis is the only method where **both the costs and the outcomes (benefits) are measured in monetary units** (e.g., Dollars, Rupees). This allows policymakers to calculate the "Net Present Value" or the "Benefit-Cost Ratio." Because everything is converted into currency, CBA allows for the comparison of health programs with non-health programs (e.g., comparing a vaccination drive to building a new highway). **Analysis of Incorrect Options:** * **Cost-Effectiveness Analysis (CEA):** Here, costs are measured in monetary terms, but benefits are measured in **natural units** (e.g., years of life saved, number of cases prevented, or reduction in blood pressure). It is the most common method used in healthcare. * **Network Analysis:** This is a management tool (including PERT and CPM) used for **planning and controlling** complex projects by identifying the sequence of activities. It does not measure monetary benefits of health outcomes. * **Program Budgeting System:** This is a **financial management technique** used for resource allocation and planning within an organization based on specific goals rather than just line-item expenditures. **High-Yield Pearls for NEET-PG:** * **Cost-Utility Analysis (CUA):** A special type of CEA where benefits are measured in **Quality-Adjusted Life Years (QALYs)** or Disability-Adjusted Life Years (DALYs). * **Cost-Minimization Analysis (CMA):** Used when two interventions have **equal outcomes**, so only the costs are compared to find the cheapest option. * **Input** in all health economic evaluations is always measured in **Money**. The difference lies solely in how the **Output** is measured.

Practice by Chapter

Basic Concepts in Health Economics

Practice Questions

Health Financing Mechanisms

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Cost-Benefit Analysis

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Cost-Effectiveness Analysis

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Health Insurance Systems

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National Health Accounts

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Healthcare Market Analysis

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Economic Evaluation of Health Programs

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Resource Allocation in Healthcare

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Direct and Indirect Health Costs

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Health Budget Planning

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Economic Burden of Disease

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