Question

Do an essay on overview of health economic principles

Answer 1

The main motive of health economics were the health care of individual, their decison making , their techniques and ways to look forward towards the matter of health and health providers like government.

The main concepts included in Health economic principles were

• Demand and supply
• Scarcity
• Opportunity cost
• Margins
• efficiency and equity
• Discounting
• Time horizons

Scarcity tells about that there are not enough resources to meet the needs of people. They have unlimited wants and to meet those unlimited wants the resources are limited specially in the health care services. They don't have peoper health care services to meet the need of people

Health is something that should be taken care of itself but people demand health care services and focus on health care only just to improve. Health economics emphasis on the demand of health care among people and focus on the needs of it. It calculates the actual demand of people who are willing to pay for health improvements. On the other hand supply focus on the input and output of goods and services available in the market. The cost and prices set by the market , their profit margin etc everything is included in it.

Opportunity means the next best alternative good. This includes that any economic goods and sercives which are produced for health care issues cannot be used for other goods and services. This means that if those goods and services have been produced if would have benifited the others , in short the benifit have been forgone.

Efficiency means that the best possible use of the available resources to produce the maximum output. As the need and wants of people are unlimted and resources are limited therefore what we need is to use those resources in the most efficient way so as to produce best possible output. suppose if any country decides to give its population the best possible services in form of health care with the available resources it will be beneficial for all. Efficiency includes technical economical and social efficiency.

Equity means distribution of the goods and services among every one in the fairly way. Providing the health care and its services to all the population in the most fairest way. It emphasis on equally using the sevices to equal willingness to pay.

Margin means the extra unit included to produce one more unit of output. To produce the health care goods and services that extra unit which is produced to give an output.

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