Basic Concepts in Health Economics — MCQs
Based on healthcare utility values and life expectancy, which of the following measures can be calculated? Consider a scenario where the average life expectancy for a woman in Japan is 87 years, and there is an increase in life expectancy due to healthcare advancements.
A new drug has been introduced into the market which was found to decrease mortality but it does not cure the disease. Which of the following is a true statement regarding prevalence and incidence?
In Ayushman Bharat under School Health Services, which of the following is not included?
Which of the following best describes the term 'Ivory Towers of Disease'?
When an outcome is compared with intended objectives, it is called as -
Which of the following procedures is not typically covered by the National Programme for Control of Blindness (NPCB) for reimbursement of surgery done by a non-governmental organization (NGO) eye hospital?
Which of the following is NOT considered an element of primary healthcare?
In a programme, analysis of results in comparison to cost is known as
The most comprehensive indicator of cost-effectiveness analysis is
Identify the index?
Basic Concepts in Health Economics Indian Medical PG Practice Questions and MCQs
Question 1: Based on healthcare utility values and life expectancy, which of the following measures can be calculated? Consider a scenario where the average life expectancy for a woman in Japan is 87 years, and there is an increase in life expectancy due to healthcare advancements.
- A. HALE
- B. DALY
- C. DFLE
- D. QALY (Correct Answer)
Explanation: ***QALY*** - **Quality-Adjusted Life Years (QALYs)** combine the length of life with the **quality of life** lived, taking into account healthcare utility values (e.g., from 0 for dead to 1 for perfect health). - An increase in life expectancy due to healthcare advancements, coupled with assumed utility values, directly enables the calculation of QALYs gained or lost. *HALE* - **Health-Adjusted Life Expectancy (HALE)** is a measure of the average number of years that a person can expect to live in "**full health**" by adjusting for years lived in less than full health due to disease or injury. - While it incorporates health status, it specifically focuses on time lived in full health rather than the utility-weighted quality of life over the entire lifespan as QALYs do. *DALY* - **Disability-Adjusted Life Years (DALYs)** measure the total number of healthy years lost due to disease, disability, or premature death. - DALYs are a measure of disease burden, quantifying years lost, whereas QALYs are a measure of health gains or health states. *DFLE* - **Disability-Free Life Expectancy (DFLE)** measures the expected number of years an individual will live without disability. - While it considers the absence of disability, it does not incorporate the concept of "utility values" or varying degrees of health-related quality of life beyond a binary disabled/non-disabled state, as QALYs do.
Question 2: A new drug has been introduced into the market which was found to decrease mortality but it does not cure the disease. Which of the following is a true statement regarding prevalence and incidence?
- A. Increase in prevalence (Correct Answer)
- B. Decrease in incidence
- C. Decrease in prevalence
- D. Increase in incidence
Explanation: ***Increase in prevalence*** - A drug that decreases mortality without curing the disease means people **live longer with the condition**, thus increasing the duration of disease - **Prevalence = Incidence × Duration**: Since duration increases while incidence remains constant, prevalence increases - More existing cases accumulate over time as fewer patients die from the disease *Decrease in incidence* - **Incidence** refers to the rate at which **new cases** develop in a population - This drug affects survival of existing cases, not the development of new cases - Since the drug neither prevents nor promotes new cases, **incidence remains unchanged** (not decreased) *Decrease in prevalence* - Prevalence would decrease if the drug **cured the disease** (removing people from the diseased pool) or if **mortality increased** - The scenario describes the opposite: decreased mortality without cure, which **increases** prevalence *Increase in incidence* - This would mean more new cases are developing over time - The drug affects **survival** of existing cases, not the **rate of new diagnoses** - Incidence remains unchanged, not increased
Question 3: In Ayushman Bharat under School Health Services, which of the following is not included?
- A. Health check-up/screening
- B. Albendazole provision
- C. Monthly Iron Folic Acid Supplementation
- D. Providing free spectacles (Correct Answer)
Explanation: ***Providing free spectacles*** - Under Ayushman Bharat School Health Services and RBSK (Rashtriya Bal Swasthya Karyakram), while **vision screening** is universally implemented, the provision of **free spectacles** is not uniformly guaranteed across all states and depends on fund availability and state-level implementation. - The primary focus remains on **screening and referral**, with spectacle provision being supplementary rather than a core mandated service compared to the other interventions listed. - Unlike the other three services which are universally delivered, free spectacles provision shows **geographic and implementation variability**. *Health check-up/screening* - **Comprehensive health check-ups** and screenings are a mandatory core component of the Ayushman Bharat School Health Program implemented uniformly across all states. - This includes screening for common conditions like **vision problems**, **hearing impairments**, **dental issues**, and growth monitoring. *Albendazole provision* - The administration of **Albendazole** for biannual deworming is a standard, universally implemented practice under the National Deworming Day initiative integrated with School Health Programs. - This is part of a broader strategy to improve the **nutritional status** and overall health of school-going children. *Monthly Iron Folic Acid Supplementation* - **Iron Folic Acid (IFA) supplementation** through the Weekly Iron Folic Acid Supplementation (WIFS) program is a key mandated intervention to combat **anemia** among adolescents (10-19 years). - This is universally implemented through School Health Services and directly contributes to improving **cognitive function** and physical health of students.
Question 4: Which of the following best describes the term 'Ivory Towers of Disease'?
- A. Small health centres
- B. Large hospitals (Correct Answer)
- C. Private practitioners
- D. Health insurance companies
Explanation: ***Large hospitals*** - The term "Ivory Towers of Disease" metaphorically refers to **large, often academic or university-affiliated hospitals**. - These institutions are perceived as somewhat **isolated from the daily realities** of general practice and community health, focusing on complex cases, research, and specialized care. *Small health centres* - These are typically **community-based facilities** that often serve as the first point of contact for patients. - They are considered more **integrated with the community** rather than isolated, making "Ivory Towers" an inappropriate description. *Private practitioners* - Private practitioners operate their own independent clinics and are usually **deeply embedded within the community**. - They are known for **direct patient interaction** and accessibility, which contrasts with the "Ivory Towers" concept of detachment. *Health insurance companies* - These are financial entities that manage healthcare costs and policies, not actual healthcare providers or facilities. - Their role is administrative and financial, and they are **not directly involved in patient care** delivery in the way a hospital or clinic is.
Question 5: When an outcome is compared with intended objectives, it is called as -
- A. Network analysis
- B. Evaluation (Correct Answer)
- C. Input-output analysis
- D. Monitoring
Explanation: ***Evaluation*** - **Evaluation** is a systematic process of comparing actual outcomes against predefined objectives to assess their effectiveness, efficiency, and impact. - It involves making judgments about the **worth** or **significance** of a program, project, or policy. *Network analysis* - **Network analysis** is a technique used to understand the relationships and connections within a system, often focusing on communication or collaboration. - It does not primarily involve comparing outcomes to objectives but rather mapping and measuring interactions between entities. *Input-output analysis* - **Input-output analysis** is an economic technique that studies the interdependence between different sectors of an economy by tracing inputs and outputs. - It is concerned with resource allocation and production linkages, not the comparison of outcomes to explicit objectives. *Monitoring* - **Monitoring** involves the continuous tracking of activities and progress against plans to ensure things are on track. - While it collects data on actual performance, its primary purpose is to observe and report as events unfold, not to make judgments about overall success against original goals.
Question 6: Which of the following procedures is not typically covered by the National Programme for Control of Blindness (NPCB) for reimbursement of surgery done by a non-governmental organization (NGO) eye hospital?
- A. Cataract surgery
- B. Pan retinal photocoagulation for diabetic retinopathy
- C. Syringing and probing of the nasolacrimal duct (Correct Answer)
- D. Trabeculectomy surgery
Explanation: ***Syringing and probing of the nasolacrimal duct*** - While important for lacrimal drainage issues, procedures like **syringing and probing** are generally considered minor and less vision-restoring compared to the major surgeries targeted by the **NPCB**. - The **NPCB** focuses on interventions for leading causes of blindness, primarily **cataract** and other significant vision-threatening conditions, which this procedure typically isn't. *Cataract surgery* - **Cataract surgery** is a cornerstone of the **NPCB's** efforts, as cataracts are the leading cause of reversible blindness. - Reimbursement for **cataract surgery** is a primary objective to improve access and reduce the burden of blindness. *Pan retinal photocoagulation for diabetic retinopathy* - **Diabetic retinopathy** is a major cause of preventable blindness, and **pan retinal photocoagulation (PRP)** is a key intervention to preserve vision. - The **NPCB** includes procedures for **diabetic retinopathy** management due to its significant public health impact. *Trabeculectomy surgery* - **Trabeculectomy** is a surgical procedure for **glaucoma**, which is another significant cause of irreversible blindness. - The **NPCB** includes interventions for **glaucoma** given its severe vision-threatening nature and the need for surgical management in many cases.
Question 7: Which of the following is NOT considered an element of primary healthcare?
- A. Health education
- B. Provision of essential drugs
- C. Intersectoral coordination
- D. Cost effectiveness (Correct Answer)
Explanation: ***Cost effectiveness*** - While an important consideration in healthcare policy and management, **cost-effectiveness** is an outcome or an evaluation criterion rather than a direct, inherent element or principle of primary healthcare delivery itself. - Primary healthcare focuses on access, equity, comprehensiveness, and community participation rather than solely on economic efficiency as a foundational element. *Health education* - **Health education** is a core component of primary healthcare, empowering individuals and communities to make informed decisions about their health and adopt healthy behaviors. - It plays a crucial role in **disease prevention** and promoting self-care. *Intersectoral coordination* - **Intersectoral coordination** involves collaborating with other sectors (e.g., education, agriculture, housing) to address the broader determinants of health, which is a key principle of primary healthcare. - It recognizes that health outcomes are influenced by factors beyond the healthcare system alone. *Provision of essential drugs* - The **provision of essential drugs** is a fundamental element of primary healthcare, ensuring access to necessary medications at an affordable cost for effective treatment and management of common health problems. - This accessibility is crucial for achieving **universal health coverage**.
Question 8: In a programme, analysis of results in comparison to cost is known as
- A. Cost effective analysis
- B. Cost benefit analysis (Correct Answer)
- C. Management by objectives
- D. Cost utility study
Explanation: ***Cost benefit analysis*** - In **cost-benefit analysis**, the **benefits of a program** are quantified in monetary terms and then compared directly with the **monetary cost** of the program. - This method is used to determine if the **monetary gain (or benefit)** from a program outweighs its monetary expenditure. *Cost effective analysis* - **Cost-effectiveness analysis** compares the **costs of alternative programs** with their effectiveness, usually measured in natural units suitable for the health outcome (e.g., lives saved, cases cured). - It does not assign a monetary value to the health outcome but rather identifies the intervention that achieves the **desired outcome at the lowest cost** or the maximum outcome for a given cost. *Management by objectives* - **Management by objectives (MBO)** is a strategic management model that aims to improve organizational performance by clearly defining objectives that are agreed to by both management and employees. - This concept is primarily about **setting goals and tracking performance** within an organization, not about analyzing program costs versus outcomes. *Cost utility study* - A **cost-utility analysis (CUA)** is a type of cost-effectiveness analysis where the health outcome is measured in **quality-adjusted life years (QALYs)** or disability-adjusted life years (DALYs). - It accounts for both the **quantity and quality of life**, but it still does not express benefits in direct monetary terms.
Question 9: The most comprehensive indicator of cost-effectiveness analysis is
- A. Number of heart attacks avoided
- B. Cost per life year gained
- C. Number of life years gained
- D. QALYs gained (Correct Answer)
Explanation: ***QALYs gained*** - **Quality-Adjusted Life Years (QALYs)** is the most comprehensive measure in cost-effectiveness analysis as it accounts for both the quantity and quality of life - Combines years of life added with a utility score reflecting health-related quality of life during those years - Provides a holistic view that captures both mortality and morbidity benefits of interventions *Number of heart attacks avoided* - Specific to a single clinical outcome and does not account for other health benefits or adverse effects - While important for cardiovascular interventions, it is too narrow to serve as a comprehensive cost-effectiveness indicator - Does not capture broader impact on overall health, quality of life, or longevity *Cost per life year gained* - Focuses on the quantity (length) of life gained but does not consider the quality of those gained years - An intervention might add years of life that are of poor quality, which this measure cannot differentiate - Less comprehensive than QALYs as it misses the health status dimension *Number of life years gained* - Only considers the extension of life without incorporating health status or quality of life during additional years - Provides an incomplete picture as it treats all life years equally regardless of health state - A longer life with significant disability would be valued the same as healthy years
Question 10: Identify the index?
- A. Human developmental index (Correct Answer)
- B. POLI
- C. Human poverty index
- D. Multidimensional poverty index
Explanation: ***Human developmental index*** - The **Human Development Index (HDI)** is the correct answer as the diagram exactly represents its three core dimensions - HDI measures overall achievement in: **Health** (life expectancy at birth), **Education** (mean years of schooling and expected years of schooling), and **Living standards** (GNI per capita) - These are the standard components published by UNDP for calculating HDI - HDI is a summary measure of average achievement in key dimensions of human development *Human poverty index* - The Human Poverty Index (HPI) was an older measure that has been discontinued - HPI focused on deprivations rather than overall development achievements - The diagram shows development indicators (positive achievements), not deprivation indicators - HPI has been replaced by the Multidimensional Poverty Index (MPI) *POLI* - **POLI** (Physical Quality of Life Index) is a different index that uses infant mortality, life expectancy at age one, and literacy rate - The components shown in the diagram (mean years of schooling, expected years of schooling, GNI per capita) are not part of POLI - This is not a recognized standard index in current use *Multidimensional poverty index* - The **Multidimensional Poverty Index (MPI)** measures acute multidimensional poverty across health, education, and living standards - However, MPI uses **different specific indicators**: nutrition, child mortality, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, and assets - The diagram shows HDI components (life expectancy, mean/expected years of schooling, GNI per capita), which are NOT the MPI indicators - MPI focuses on deprivations at the household level, while the diagram shows aggregate development measures
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