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Health Econ-Module 1

The document provides an introduction to basic economic concepts relevant to health economics. It defines economics as the study of how societies allocate scarce resources to satisfy unlimited wants. Key economic concepts discussed include scarcity, factors of production (land, labor, capital, entrepreneurship), branches of economics (microeconomics focuses on individual decision making while macroeconomics analyzes overall economic performance), and the three basic economic problems of what, how, and for whom to produce. Health economics applies these concepts to understand resource allocation in the healthcare sector.

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Kristina Cantilero Sucgang
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58 views

Health Econ-Module 1

The document provides an introduction to basic economic concepts relevant to health economics. It defines economics as the study of how societies allocate scarce resources to satisfy unlimited wants. Key economic concepts discussed include scarcity, factors of production (land, labor, capital, entrepreneurship), branches of economics (microeconomics focuses on individual decision making while macroeconomics analyzes overall economic performance), and the three basic economic problems of what, how, and for whom to produce. Health economics applies these concepts to understand resource allocation in the healthcare sector.

Uploaded by

Kristina Cantilero Sucgang
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Module 1:

INTRODUCTION
BASIC CONCEPTS IN ECONOMICS
Prepared by: Kristina C. Sucgang, R.N.
 FATHER OF MODERN
ECONOMICS

Smith is most famous for his 1776 book,


"The Wealth of Nations." Smith's writings
were studied by 20th-century philosophers,
writers, and economists.

ADAM SMITH
BASIC CONCEPTS IN ECONOMICS
HEALTH ECONOMICS
- The study of Health Economics involves the
application of various economics concepts.
Thus, the foremost interest of this module is
to provide an introduction to the basic
concepts of economics that will help
strengthen the working knowledge of the
subject matter
ECONOMICS

- as defined by Samuelson, is the study of how people and society end


up choosing, with or without the use of money, to employ scarce but
productive resources that could have alternative uses, to produce various
commodities and distribute them for consumption, now or in the future,
among various persons and groups in society.
- It analyze the costs and benefits of improving patterns in resource
allocation.
ECONOMICS continuation
- Study of allocating resources to satisfy human wants
- Study of production, consumption, and distribution of human activities
- Study on how to deal with scarcity
- Study of making choices in using scarce resources to maximize
satisfaction
- Study of ordinary human business life
ECONOMICS continuation
• Economics id defined as a social study that deals with the allocation of
scarce resources which have alternative uses to produce and distribute
goods and/or services to satisfy unlimited wants.
BASIC ECONOMIC CONCEPTS

• Economies
-is a social science because it
studies human behavior. As a social science,
economies studies how individuals make
choices in allocating limited resources in an
effort to satisfy unlimited human wants.
BASIC ECONOMIC CONCEPTS
• Scarcity
-is the reason why people have
practiced economies. It is a condition where
there are insufficient productive resources to
satisfy all the needs and wants of a
population.
Productive resources, or factors of production such as land, labor,
capital and entrepreneurial skills are the inputs used to produce the
goods and services that people want. Medical & Non-medical goods
will not exist without the use of resources. Unfortunately, these
resources are scarce and that human needs and wants are unlimited.
Hence, it is essential for the society to make a decisive choice based
on its preferences.

 ECONOMIC = SCARCITY + UNLIMITED NEEDS


AND WANTS

https://www.google.com/search?q=scarce+resources+examples
BRANCHES OF ECONOMICS:

https://www.google.com/search?q=microeconomics&tbm
BRANCHES OF ECONOMICS:

MICROECONOMICS
- It examines the economic behavior of
individual entities such as the consumer, the
producer and resource owner in the view to
understand decision-making in the face of
scarcity and the consequences of this decision
BRANCHES OF ECONOMICS:
MACROECONOMICS

- It is concerned with the overall performance of the economy with a


view to understand interaction between economic aggression such as
national income, employment and inflation.
ECONOMIC RESOURCES
ECONOMIC RESOURCES
LAND
- Also known as “natural resources”, which are
also called “gifts of nature” as they are not
man made.
- Owners of lands receive a payment known as
EXAMPLE
Rent.
→ rental payment for the building where the dental clinic is situated.
LABOR
- it pertains to the physical and mental effort exerted
in production. Such as the services of the front liners
in the fight against COVID-19, like doctors and
nurses. The factor payments for labor is wage.
CAPITAL
- it include all human creations used to produce goods and services. It
consist of the machineries and equipment. The owner of capital earns an
income called interest.

EXAMPLE
→ the use of dental X-ray machine
ENTREPRENEUR
- the people that are combining the other 3 factors of
production. They are regard as a specialist form of labor
input. The payment for the entrepreneurships profit.
Dentists can be considered as entrepreneur as they are
managing their own clinics.
BASIC ECONOMIC PROBLEMS
1. What to
produce and
How much?

2. How to
Produce?

3. For Whom
to produce?
BASIC ECONOMIC PROBLEMS
1. What to produce and how much?
- Society must decide what medical and nonmedical goods and services
should be produced and in what quantities.
2. How to produce?
- This is a question of production method that will be used to produce
medical and nonmedical goods and services. This involves finding the
efficient and effective technique for production.
BASIC ECONOMIC PROBLEMS
3. For whom to produce?
- This is about the market for the goods as it deals with the problem of
distribution. In this economic question, it answer the question, “who
should consume the produced goods and services?”
Consumption - Which refers to the utilization of goods and services
Production - the creation of goods and services
Distribution – pertains to the allocation of goods and services
Exchange - the trading of goods and services which has a value and a
price.
continuation

What is the difference between goods and services?

→ Goods are tangible , something you can see, feel and touch , while
service is intangible, something not physical that requires scarce
resources to produce and satisfies human wants.
THANK YOU!!!

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