Health Economics Practice Questions

Q: What is the most cost-effective method of family planning?

Vasectomy. ### Explanation **Correct Option: A. Vasectomy** In health economics, **Cost-Effectiveness Analysis (CEA)** measures the cost of an intervention against its health outcomes (e.g., cost per pregnancy averted). **Vasectomy** is considered the most cost-effective method of family planning globally. This is because it is a one-time, permanent procedure with a very low failure rate (Pearl Index ~0.1–0.15). Unlike temporary methods, it requires no recurring costs for supplies, follow-up injections, or daily compliance, making the long-term cost per year of protection significantly lower than any other method. **Why Incorrect Options are Wrong:** * **B. Barrier method (Condoms):** While the unit cost is low, the cumulative cost over a reproductive lifetime is high. Furthermore, high "user-failure" rates lead to unintended pregnancies, increasing the overall economic burden. * **C. DMPA (Injectables):** These require recurring costs every 3 months for the drug and the healthcare provider's time for administration, making them more expensive over time than a one-time surgical procedure. * **D. Oral pills:** These require daily compliance and monthly procurement. The high recurring cost and the risk of failure due to missed pills make them less cost-effective than permanent sterilization. **High-Yield Clinical Pearls for NEET-PG:** * **Most Effective Method:** Implants and Vasectomy (lowest failure rates). * **NSV (No-Scalpel Vasectomy):** The preferred technique due to fewer complications (hematoma/infection) compared to conventional vasectomy. * **Post-Vasectomy Advice:** It is not immediately effective. A man is considered sterile only after **3 months** or after **20 ejaculations**, confirmed by a sperm-free semen analysis. * **Cost-Benefit vs. Cost-Effectiveness:** Cost-benefit measures outcomes in monetary terms, while cost-effectiveness measures outcomes in natural units (e.g., births averted).

Q: Which of the following is NOT a feature of cost accounting?

Benefit expressed as results achieved. **Explanation:** In Health Economics, it is crucial to distinguish between **Cost Accounting** and **Cost-Effectiveness/Benefit Analysis**. **1. Why Option D is the correct answer:** Cost accounting is strictly an internal process focused on the **input** side of a program. It involves the systematic recording and analysis of all expenditures incurred to provide a service. **Benefit expressed as results achieved** refers to the **output** or outcome of a program. This is a feature of *Cost-Effectiveness Analysis* (where outcomes are measured in natural units like lives saved) or *Cost-Benefit Analysis* (where outcomes are measured in monetary terms), rather than cost accounting itself. **2. Why the other options are incorrect:** * **Option A (Cost control):** One of the primary objectives of cost accounting is to identify areas of wastage and implement measures to reduce expenses without compromising quality. * **Option B (Planning and allocation):** By analyzing past expenditures, cost accounting provides the data necessary for administrators to plan future budgets and allocate human and financial resources efficiently. * **Option C (Cost structure of program):** Cost accounting breaks down expenses into categories (e.g., capital costs vs. recurrent costs, or direct vs. indirect costs), which defines the overall cost structure. **High-Yield Clinical Pearls for NEET-PG:** * **Cost-Benefit Analysis (CBA):** Both inputs and outputs are measured in **monetary units** (e.g., Dollars/Rupees). * **Cost-Effectiveness Analysis (CEA):** Inputs are monetary, but outputs are measured in **natural units** (e.g., number of cases prevented, years of life gained). * **Cost-Utility Analysis (CUA):** A specialized form of CEA where the outcome is measured in **Quality Adjusted Life Years (QALYs)** or **DALYs**. * **Cost-Accounting:** Focuses solely on the **process and input** (expenditure analysis).

Q: Which of the following is NOT included in the poverty index?

Income. ### Explanation The question refers to the **Human Poverty Index (HPI)**, introduced by the UNDP. The HPI was designed to measure deprivation in the same three basic dimensions of human development as the Human Development Index (HDI). **1. Why "Income" is the correct answer:** The Human Poverty Index focuses on **deprivation in human life** rather than just financial lack. While income is a common measure of poverty in traditional economic terms, it is **not** a direct component of the HPI. The HPI measures the *denial* of opportunities and choices most basic to human development. **2. Analysis of Options (Components of HPI):** The HPI-1 (for developing countries) consists of three dimensions: * **Long Life (Option A):** Measured by vulnerability to death at a relatively early age (specifically, the probability at birth of not surviving to age 40). * **Knowledge (Option B):** Measured by exclusion from the world of reading and communications (specifically, the adult illiteracy rate). * **Standard of Living (Option D):** Measured by lack of access to overall economic provisioning. This is represented by a composite of: * Percentage of the population without sustainable access to an improved water source. * Percentage of children underweight for their age. **3. High-Yield Facts for NEET-PG:** * **HDI vs. HPI:** While HDI measures *average achievement*, HPI measures *deprivation* in the same dimensions. * **MPI (Multidimensional Poverty Index):** In 2010, the HPI was replaced by the MPI. The MPI uses 10 indicators across three dimensions: **Health** (Nutrition, Child mortality), **Education** (Years of schooling, School attendance), and **Living Standards** (Cooking fuel, Sanitation, Water, Electricity, Floor, Assets). * **Poverty Line in India:** Traditionally based on **calorie intake** (2400 kcal in rural, 2100 kcal in urban areas) or monthly per capita expenditure (Tendulkar/Rangarajan Committee).

Question 1

A low-income country plans to introduce HPV vaccination for cervical cancer prevention but faces budget constraints. Current cervical cancer screening coverage is 15% with VIA (Visual Inspection with Acetic acid). Competing priority is expanding TB-DOTS coverage from 60% to 85%. Using WHO principles of priority setting in resource-limited settings, evaluate the best approach.

Accepted Answer

Expand TB-DOTS coverage first due to immediate mortality impact and higher baseline coverage

Answer

Prioritize HPV vaccination as it provides long-term prevention

Answer

Focus on improving VIA screening coverage instead of vaccination

Answer

Implement both programs equally with 50% budget allocation each

Question 2

What is the most cost-effective method of family planning?

Accepted Answer

Vasectomy

Answer

Barrier method

Answer

DMPA

Answer

Oral pills

Question 3

Which management technique is the most promising tool for application in the health field?

Accepted Answer

Cost-effectiveness analysis

Answer

Cost-benefit analysis

Answer

Cost accounting

Answer

Input-output analysis

Question 4

Which of the following is NOT a feature of cost accounting?

Accepted Answer

Benefit expressed as results achieved

Answer

Cost control

Answer

Planning and allocation of people and financial services

Answer

Cost structure of program

Question 5

Which of the following is NOT included in the poverty index?

Accepted Answer

Income

Answer

Long life

Answer

Knowledge

Answer

Standard of living

Health Economics — MCQs

Health Economics — MCQs

On this page

Practice by Chapter

Want unlimited practice?