Basics & Economic Evaluations MCQ Quiz | Health Economics

Welcome to the Health Economics quiz for MBBS students. This quiz focuses on the fundamental concepts and various types of economic evaluations critical to understanding healthcare resource allocation. You will be tested on topics such as scarcity, opportunity cost, different evaluation methods like CEA, CUA, and CBA, and key metrics like QALYs. The quiz consists of 25 multiple-choice questions designed to reinforce your knowledge. After submitting your answers, you’ll see your score and a review of the correct and incorrect responses. For your future reference and study, an option to download all the questions along with their correct answers in a PDF format will be available upon completion. Good luck!

Q1. The fundamental economic problem that health economics addresses is:

Scarcity of resources relative to unlimited wants. The high price of pharmaceuticals. The lack of doctors in rural areas. The inefficiency of public hospitals.

Q2. A hospital decides to purchase a new MRI machine instead of hiring 10 new nurses. The opportunity cost of the MRI machine is:

The monetary price of the machine. The value of the services the 10 nurses would have provided. The depreciation value of the old MRI machine. The future revenue generated by the new machine.

Q3. Healthcare is often considered a “merit good” because:

It is provided by a free market without government intervention. Its consumption is believed to generate positive externalities for society. It is non-rivalrous and non-excludable. Only the wealthy can afford it.

Q4. The demand for healthcare is typically considered to be:

Perfectly elastic. Derived from the demand for health itself. Independent of price. Determined solely by the patient.

Q5. “Asymmetric information” in the patient-physician relationship is a primary cause of:

Supplier-induced demand. Perfect competition. Economies of scale. Allocative efficiency.

Q6. What is the primary purpose of an economic evaluation in healthcare?

To determine the clinical effectiveness of a drug. To compare the costs and consequences of two or more alternative interventions. To set the price for a new medical device. To calculate the total budget of a hospital.

Q7. A Cost-Effectiveness Analysis (CEA) measures health outcomes in:

Monetary units. Quality-Adjusted Life Years (QALYs). Natural units (e.g., life years gained, cases prevented). Disability-Adjusted Life Years (DALYs).

Q8. Cost-Utility Analysis (CUA) is a specific form of CEA where outcomes are measured in:

Dollars saved. Number of successful surgeries. Quality-Adjusted Life Years (QALYs). Physician satisfaction scores.

Q9. Which type of economic evaluation requires valuing all costs and benefits, including health outcomes, in monetary terms?

Cost-Minimisation Analysis (CMA). Cost-Effectiveness Analysis (CEA). Cost-Utility Analysis (CUA). Cost-Benefit Analysis (CBA).

Q10. Cost-Minimisation Analysis (CMA) is the most appropriate evaluation method when:

The interventions have vastly different health outcomes. The health outcomes of the compared interventions are proven to be identical. The goal is to measure the value of a life in monetary terms. The costs of the interventions are unknown.

Q11. A QALY is calculated by multiplying:

The cost of an intervention by the number of patients treated. The number of life years gained by a quality-of-life weight. The mortality rate by the morbidity rate. The total healthcare budget by the population size.

Q12. The Incremental Cost-Effectiveness Ratio (ICER) is calculated as:

(Cost A / Effect A) – (Cost B / Effect B). (Cost A – Cost B) / (Effect A – Effect B). (Effect A – Effect B) / (Cost A – Cost B). Total Cost / Total Effect.

Q13. In economic evaluations, “discounting” is the process of:

Reducing the price of a drug for bulk purchases. Adjusting future costs and benefits to their present-day value. Ignoring costs that occur more than 10 years in the future. Calculating the average cost of an illness.

Q14. Moral hazard in health insurance refers to the phenomenon where:

High-risk individuals are more likely to buy insurance. Insured individuals may consume more healthcare services than they would if they had to pay the full price. Insurance companies refuse to cover people with pre-existing conditions. Physicians provide unnecessary services to increase their income.

Q15. Adverse selection occurs when:

An insurance pool has a disproportionately high number of low-risk individuals. Individuals with higher-than-average health risks are more likely to seek insurance coverage. Patients select the most expensive treatment option available. Hospitals select patients based on their ability to pay.

Q16. Technical efficiency in healthcare means:

Providing the mix of services that society values most. Producing a given level of health output with the minimum possible inputs. Ensuring everyone has equal access to care. Maximizing hospital profits.

Q17. Allocative efficiency is achieved when:

All hospitals are using the latest technology. Healthcare is provided at the lowest possible cost. Resources are distributed to produce the combination of goods and services most valued by society. Every citizen has health insurance coverage.

Q18. An economic evaluation conducted from a “societal perspective” would include which of the following costs?

Only the costs borne by the hospital. Only the out-of-pocket costs to the patient. All costs, including patient time, caregiver costs, and productivity losses. Only the costs paid by the insurance company.

Q19. Marginal analysis in health economics involves:

Calculating the total cost of a health program. Evaluating the additional benefit gained from one extra unit of a health intervention. Comparing the average costs of two different hospitals. Setting the overall budget for the Ministry of Health.

Q20. A Disability-Adjusted Life Year (DALY) represents:

The number of years a person lives with a disability. A measure of overall disease burden, expressed as the number of years lost due to ill-health, disability, or early death. The cost of treating a disability for one year. A quality-of-life score used only in high-income countries.

Q21. In Cost-Benefit Analysis (CBA), the “Willingness to Pay” (WTP) method is used to:

Determine the cost of a pharmaceutical drug. Estimate a monetary value for a health benefit, such as an extra year of life. Calculate an insurance premium. Measure the time a patient is willing to wait for an appointment.

Q22. The cost of a patient’s lost wages while recovering from surgery is an example of a(n):

Direct medical cost. Direct non-medical cost. Indirect cost. Intangible cost.

Q23. Health Technology Assessment (HTA) is a multidisciplinary process that uses economic evaluations to:

Patent new medical inventions. Inform policy decisions about the use of health technologies at a population level. Train doctors on how to use new equipment. Market medical devices to hospitals.

Q24. If the demand for a specific life-saving drug is highly inelastic, it means that:

A large change in price will lead to a large change in the quantity demanded. The quantity demanded is very responsive to changes in income. A large change in price will lead to a very small change in the quantity demanded. The drug has many close substitutes.

Q25. In a Cost-Effectiveness Plane, an intervention is considered “dominant” if it is:

More costly and more effective than the alternative. Less costly and less effective than the alternative. More costly and less effective than the alternative. Less costly and more effective than the alternative.

G S Sachin

I am a Registered Pharmacist under the Pharmacy Act, 1948, and the founder of PharmacyFreak.com. I hold a Bachelor of Pharmacy degree from Rungta College of Pharmaceutical Science and Research. With a strong academic foundation and practical knowledge, I am committed to providing accurate, easy-to-understand content to support pharmacy students and professionals. My aim is to make complex pharmaceutical concepts accessible and useful for real-world application.

Mail- Sachin@pharmacyfreak.com