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Health Economics

Topics

 Economics
-Definition
-Characteristics
-Components
- Macroeconomics and Microeconomics

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Economics
 Is the study of those activities that involve
the production and exchange of goods.

 Is the science choice, its studies how people

choose to use scarce or limited productive
resources (land, labor, equipment and
technical knowledge) to produce various
commodities and to distribute these goods
to various members of the society for their
consumption.

Economics

 Is the study of money, banking, capital and Wealth.

 Is the study of commerce among nations.

 Is the study of how people and society end up

choosing w/ or w/o the use of money to employ
scarce but productive resources that could have
alternative uses, to produce various commodities
and distribute them for consumption

 It analyze the costs and the benefits of improving

patterns in resources allocation

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Characteristics of Economics
 Economic resources will always be scarce
and people will always struggle to work
against scarcity.

 There is a universal objective of attaining

the maximum output out of a given input.

Man Economic Resources

 Land

 Labor

 Technology

 Capital

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Man Economic
Resources
 Land- Mans most important
resource aside from himself is land.

 Labor- Human Activity, has produced a

multitude of outputs.
- specialization in a specific field makes
one very proficient in producing a
certain good or service.

Man Economic
Resources
 Technology- has arguably
improved the quality of human life
- The Technological Evolution
- Its applications to health and medicine
has definitely improved the quality of life and
life of expectancy of man.
- Negative effect
- Technology is a double-edged sword. It can
be used to improve and prolong human life or
to end it.

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Man Economic Resources

 Capital - Money

Components of Economics
1. Economics is about making choices; choices
can be on.
- What commodities to produce
- For whom the commodities should be
produced
- How to best and most efficiently produce
these goods.
- What is the best way to distribute the
commodities
- How much commodities will be produced

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Components of Economics
2. Economics is analyzing the different
choices and their cost

3. The choices and their cost will have an

effect on the future of those who make
these decision, or to the recipients of the
commodities.

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Macroeconomics
 Is the study of the functioning of the
economy as a WHOLE. Macro means BIG
or GRAND.
 Macroeconomics studies, among other
things.
1. interest rate and currency exchange rates.
II. Trends in prices, output, wages, inflation,
unemployment
III. Government economic policies and Taxation.

Microeconomics
 Is the study of smaller and individual entities. It
studies the behavior of industries, companies and
households.
 Micro means SMALL studies, among other things;
1. How industries price the goods they produced
and distribute

II. How taxes affect people’s work, consumption,

saving, and allocation

IV. How households allocate and use their

financial and other resources.

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Macroeconomics and
Microeconomics Differentiated
Macroeconomics Microeconomics
 GNP • Pricing
(Gross national Product)
• GDP • Household Allocation of
(Gross Domestic Procedure) resources
• Aggregate Supply
• Aggregate Demand • Households spending and saving
• Employment/Unemployment
wages • Price and Income Elasticity
• Fiscal Policy
• Government Taxation
• Foreign Trade/Balance of Trade
• Inflation/deflation
• Interest rate
• Foreign Exchange

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Health
 The state of mental, physical and social
well being, and does not merely the
absence of illness. (WHO)

 absence of symptoms does not necessarily suggests

healthfulness

 presence of symptoms does not necessarily suggests

illness.