5. Finance and Economics

Health Economics — Quiz

Test your understanding of health economics with 5 practice questions.

Practice Questions

Question 1

In a scenario where a new medical intervention has a higher cost but also significantly better health outcomes compared to an existing intervention, which economic evaluation method is most appropriate for determining if the additional cost is justified by the additional health benefits, particularly when those benefits are expressed in terms of quality of life?

Question 2

A healthcare system is evaluating a new cancer screening program that costs $2,000,000$ and is projected to increase the 5-year survival rate by $2\%$ for a population of $100,000$ individuals. The current 5-year survival rate is $60\%$. What is the incremental cost-effectiveness ratio (ICER) of this program in terms of cost per additional life saved?

Question 3

When applying resource allocation frameworks in healthcare, what is the most significant challenge in balancing the principles of 'equity' and 'efficiency'?

Question 4

Consider a new drug that costs $10,000$ per patient and improves Quality-Adjusted Life Years (QALYs) by $0.75$. An existing drug costs $5,000$ per patient and improves QALYs by $0.40$. What is the Incremental Cost-Utility Ratio (ICUR) for the new drug compared to the existing drug?

Question 5

Which of the following scenarios is most likely to warrant a 'societal perspective' in an economic evaluation of a healthcare intervention?