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In the context of healthcare economics, which principle best explains the
allocation of limited resources in a hospital setting?
 A. Cost-benefit analysis
 B. Supply and demand
 C. Opportunity cost
 D. Marginal analysis
 Answer: C. Opportunity cost explains the cost of a foregone alternative
when a choice is made, which is crucial in resource-limited settings.
What does the term 'moral hazard' refer to in healthcare economics?
 A. The risk of a party not entering into a contract
 B. The tendency for insurance coverage to increase risky behavior
 C. The ethical considerations in economic decisions
 D. The hazard of non-compliance with healthcare regulations
 Answer: B. 'Moral hazard' refers to the increase in risky behavior that
occurs when people are insulated from the consequences, such as having
insurance coverage.
1. What is the concept of cost effectiveness analysis in healthcare
economics?
A. It is a method to compare the costs of different treatments and
interventions
B. It is a method to measure the overall economic impact of healthcare
services
C. It is a method to evaluate the effectiveness of healthcare policies
D. It is a method to calculate the profitability of healthcare organizations
Answer: A. Cost effectiveness analysis is a method used to compare the
costs of different treatments and interventions to determine which option
provides the best value for money.
2. Which of the following is an example of a fixed cost in healthcare
economics?
A. Staff salaries
B. Medical supplies
C. Prescription medications
D. Laboratory tests
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