ECON 240 Economics of Health Care Systems Q & A w/ Rationales 204 (Complete And Verified Study material) (24pages) LEARNEXAMS

1. A nurse manager is planning the budget for the next

fiscal year. She wants to use the cost-benefit analysis

method to evaluate the efficiency of different interventions.

What is the main advantage of this method over other

methods such as cost-effectiveness analysis or cost-utility

analysis?

a) It measures both costs and benefits in monetary terms

b) It measures both costs and benefits in natural units

c) It measures both costs and benefits in quality-adjusted

life years

d) It measures both costs and benefits in disability-adjusted

life years

*Answer: a) It measures both costs and benefits in

monetary terms*

Rationale: Cost-benefit analysis is a method that compares

the costs and benefits of different interventions in monetary

terms, such as dollars or euros. This allows for a common

unit of measurement and easy comparison of different

alternatives. Cost-effectiveness analysis and cost-utility

analysis measure costs in monetary terms, but measure

benefits in natural units (such as life years gained) or utility

units (such as quality-adjusted life years or disabilityadjusted life years), respectively. These methods are useful

when the benefits are not easily monetized, but they require

additional assumptions and value judgments to convert the

benefits into comparable units.

2. A nurse researcher is conducting a study on the impact