health education questions

1. 1
Dambi Dollo University
Institute of Health Science
Public Health Department
PG 2nd Year General Public Health
Health Economics final written Exam (60 %)
Allowed time: 2:00
Part I
MCQ (30%)
Choose the correct answer from given alternatives on the provided answer sheet (1.5% each)
1. Patient A presents with abdominal pain. The surgeon diagnoses appendicitis and recommends
an appendicectomy. What is the type of need mentioned above?
A. Felt need B. normative need C. A and B
2. Patient B has osteoarthrosis of the hip and wants the joint to be replaced. The doctor approves
of the demand and puts her on a waiting list.
A. Felt need B. normative need C. A and B
3. All of the following are complementary goods except
A. contact lenses and optometrist visits
B. IV fluid and IV set are
C. Car and fuel
D. Printer and toner
E. All F. none
4. One of the following is odd
A. Physicians and health officers
B. generic and brand name drugs
C. Private and public hospitals
D. All E. none

2. 2
5. __________measures the responsiveness of one variable to changes in another variable.
A. Price elasticity of demand
B. Income elasticity of demand
C. Cross elasticity of demand
D. Elasticity
6. __________________ the degree responsiveness of the quantity demanded of a good to
changes in the price of the good, other things held equal.
A. Price elasticity of demand
B. Income elasticity of demand
C. Cross elasticity of demand
D. Elasticity
7. If the elasticity of demand for physician visits is -.6, a 10% increase in price leads to a
________% decrease in the number of visits demanded.
A. -6 B. 0.6 C. 10 D. 6
8. the price elasticity of demand will always be negative
A. true B. false
9. The price elasticity of demand for the certain service is 3. what does it mean?
A. if price decrease by 1%, the quantity demanded increase by 3%.
B. if price decrease by 3%, the quantity demanded increase by 1%.
C. if price decrease by 1%, the quantity demanded decrease by 3%.
D. if price increase by 1%, the quantity demanded increase by 3%.
E. All F. none
10. Suppose the price of the ultrasound service falls from birr 150 birr to 100 birr and
quantity demanded increase from 200 unit to 400 unit. Calculate the price elasticity of
demand for the service?
A. 4 B. 3 C. 5 D. 15 E. none

3. 3
11.
What is the interpretation of the above graph?
A. a consumer will buy a good or service regardless of the movement of price.
B. In order for perfectly inelastic demand to exist, there can be no substitutes available.
C. An example would be insulin to a diabetic
D. All

4. 4
12.
What is the interpretation of the above graph?
A. a consumer will buy a good or service regardless of the movement of price.
B. In order for perfectly inelastic demand to exist, there can be no substitutes available.
C. An example would be insulin to a diabetic
D. a consumer will not buy a good or service if the price moves at all
E. none

5. 5
13.All are Factors influencing the supply of a good or service except
A. technology
B. inputs cost
C. subsidy
D. tax
E. Future expectations
F. All G. none
14. If the elasticity of demand for physician visits is .1, a 10% increase in income leads to a
________% increase in the number of visits demanded.
A.1 B. 0.001 C. -1 D. none
15.All of the followings are true about factors affecting elasticity of demand except
A. As Price increases demand decreases
B. As substitutes price increases demand increases
C. As complements prices increases the demand decreases
D. As Income increases demand increases
E. All F. none

6. 6
16.
What the above graph represents?
A. Market equilibrium
B. Shortage
C. Surplus
D. All
17.All are negative externalities except
A. Herd immunity
B. Passive smoking
C. Antibiotics resistance
D. Air pollution
E. Water pollution
F. none

7. 7
18. All of the followings are true about Perfect competition market except
A. Full and perfect consumer information
B. Many buyers and sellers
C. Free entry/exit
D. Homogenous products
E. No externalities
F. None
19. Monopoly market is Characterized by
A. Single/only one seller
B. Product is unique and there is no close substitute
C. Control over the price; known as price maker
D. All
E. None
20. Which one of the economic evaluation type is majorly recommended to improve programme
efficiency
A. Cost minimization analysis (CMA)
B. Cost effectiveness analysis (CEA)
C. Cost utility analysis (CUA)
D. Cost benefit analysis (CBA)
21. one of the following is true about CEA except
A. determine the intervention that maximizes the effectiveness of the expenditure
B. determine the least expensive way of achieving the goal, by comparing alternative
methods of intervention
C. Effectiveness is measured in natural health outcomes
D. it can compare interventions that have different outcomes
E. all F. none

8. 8
Part III
Short answer and essay (20%)
1. what is the major purpose of demand analysis for medical care? (1%)
2. Write the difference among need, want and demand? (3%)
3. What is the drawback of CBA? (2%)
4. What is the difference between CEA and CMA and give examples for each (3%)
5. What is the difference between equity and equality? Give an example for each (3%)
6. What is equity in health? (1%)
7. List Features distinguishing health care market from many other goods and services (2%)
8. List the steps in undertaking an economic evaluation (2%)
9. Draw Grossman’s demand model (2%)
10. State law of demand (1%)
Part III
Workout (10%)
11. Suppose a consumer start to consume 12 kg of butter when his income increases to Birr
2000, which he used to consume only 8 kg when his income was Birr 1600, then
calculate the consumers point income elasticity of demand and its interpretation, draw the
curve, state degree of elasticity and type of goods (5%)
12. Suppose the price of the diclofenac rises from birr 3 per gm to 5 birr per gm . As a result,
the patient quantity of demand for paracetamol rises from 10 unit to 20 unit. So calculate
the cross elasticity of demand for paracetamol and its interpretation, draw the curve, state
degree of elasticity and type of goods (5%)
Bonus
What is the pool mean in health care finance? (1%)
GOOD LUCK

9. 9
Answer sheet
Full Name:______________________________________ ID:___________ Sign:____
Part I
MCQ
1.________
2.________
3. ________
4. ________
5. ________
6. ________
7. _______
8.________
9.________
10.________
11.________
12.________
13. ________
14. ________
15. ________
16. ________
17. _______
18.________
19.________
20.________