MERU UNIVERSITY OF SCIENCE AND TECHNOLOGY

P.O. Box 972-60200 – Meru-Kenya

Tel: 020-2069349, 061-2309217. 064-30320 Cell phone: +254 712524293, +254 789151411
Fax: 064-30321
Website: www.must.ac.ke Email: info@must.ac.ke

University Examinations 2017/2018

FOURTH YEAR FIRST SEMESTER EXAMINATION FOR THE DEGREE

OF
BACHELOR OF ECONOMICS

BBE 3404: HEALTH ECONOMICS

DATE: MAY 2018 TIME: 2 HOURS

INSTRUCTIONS: Answer question one and any other two questions.

QUESTION ONE (30 MARKS)

a) Define health and discuss the five dimensions of health (10 marks)
b) Discuss the conditions of a perfectly competitive market (10 marks)
c) Discuss the functions of health financing (6 marks)
d) Using an example explain how opportunity cost is applied in health care (4 marks)

QUESTION TWO (20 MARKS)

a) Discuss the building blocks of WHO health system framework (12 marks)
b) In what ways can a county health minister use the health service cost information
(8 marks)

QUESTION THREE (20 MARKS)

a) Discuss the fundamental economic problem facing the ministry of health in Kenya
(4 marks)

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 b) Demand curve for health services is downward sloping. Discuss this statement giving
reasons (6 marks)
c) What are the qualities that make health service consumer unique (8 marks)
d) Briefly explain pooling of loses as used in health insurance (2 marks)

QUESTION FOUR (20 MARKS)

a) List the factors that can lead to a shift in demand curve for health services (5 marks)
b) Complete the table below (5 marks)
Pediatric care care of elderly opportunity cost of treating children
No. of children (No. of children in terms of elderly patients forgone
Treated in ‘000’ treated in ‘000’)
0 50 -
1 47 -
3 40 -

8 25 -

c) Define economic evaluation (2 marks)

d) Differentiate between the four main types of economic evaluation (8 marks)

QUESTION FIVE (20 MARKS)

a) i. What is moral hazard problem in health programming (2 marks)

ii. How does it affect the health seeking behavior of insured clients? (4 marks)
iii. How can this problem be minimized (4 marks)
b) Discuss the strengths and weaknesses of state funded health system (10 marks)

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