ECON3057: Health Economics – Theory and Policy
Graded Worksheet (25%)
Answer all questions
Question 1 (20mks)
a. According to economic theory, society makes an important tradeoff between scarcity,
choice and opportunity costs. Carefully discuss this tradeoff with relevance to health
economics. (10)
. A reputable doctor quits his job, which pays $77,000 a year, to open a non-governmental
organization (NGO) to serve the needs of orphans. His annual expenses for the NGO
amounts to $62,700 for food and daily supplies, $9,400 for maintenance, and $1,800 for
ooks.
i. What is his opportunity cost of opening the NGO? (Show working) (4)
ii. What core economic principles are considered in the doctor’s decision making?
(6)
Question Two (30mks)
a. Carefully explain why the basic framework of supply and demand is not sufficient to
analyze the market for health care. (15)
. “The consumption function and budget constraints explained are useful elements in
understanding the microeconomic approach to health spending.” With the use of
appropriate graphs and mathematical expressions, critically evaluate this statement. (15)
ECON3057 – Health Economics: Theory and Policy – Graded Worksheet (25%) 2021/2022, Semester 2
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Question Three (20mks)
a. Using data for the last 15 years and the Cari
ean country selected in part (a.),
graphically illustrate the percentage of health care expenditure as a percentage of the
country’s GDP. (5)
. With the data used in part (a.), carefully discuss the dominant cost components of health
care. (7)
c. Using appropriate graphs and mathematical expression,
iefly discuss one
macroeconomic view of health spending. (8)
Question Four (20mks)
a. Explain the difference between equity and efficiency. (4)
. Critically discuss the principles of equity and ethics that justify the right for persons
living with HIV/AIDS to receive care? (8)
c. Briefly explain the concept of universal health coverage and the strategies employed in
Cari
ean countries to provide for such coverage. (8)
Ru
ic for assessing the Worksheet
Assessment will be graded out of 900 with conversions of total score /90 to award of marks as
follows:
Criteria Excellent
(80 – 100)
Good
(60 – 79)
Acceptable
(40 – 59)
Unacceptable to poor
quality
(0 – 39)
ECON3057 – Health Economics: Theory and Policy – Graded Worksheet (25%) 2021/2022, Semester 2
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Understanding of
question
equirements (30)
Demonstrated an
excellent
understanding of
what the
questions are
asking and
equire.
Answers were
logically
presented.
Demonstrated a
good
understanding of
what the
questions are
asking and
equire.
Some answers
were attempted
logically; final
answers were
mostly co
ect.
Demonstrated a fair
understanding of
what the questions
are asking and
equire.
Answers were
attempted logically
ut final answer
inco
ect with respect
to some parts of the
question.
Demonstrated a poor
understanding of what
the questions are
asking and require.
Final answers largely
inco
ect and
incoherent logic
presented or the
question was not
attempted at all.
Clarity of
argument (35)
Excellent
expression and
argument in terms
of explaining
answers and/or
giving reasons for
answers.
Good articulation
and argument
given and/or
giving reasons for
answers.
Fair articulation and
argument in terms of
explaining answers
and/or giving
easons for answers.
Argument is unclear.
0 points where no
explanations are
provided.
Mathematical
and Graphical
Expression (15)
Provided
appropriate
detailed
mathematical and
graphical
expression.
Provided
appropriate
mathematical and
graphical
expression, with
some elements
missing.
Inappropriate
mathematical or
graphical expressions
provided.
0 points if no
mathematical or
graphical expression is
provided at all.
References (10) APA v.7 reference
format used
co
ectly to list
eferences AND
CORRECT in-text
citation.
APA v.7 reference
format used
co
ectly to list
eferences BUT
NO OR
INCORRECT in-
text citations.
Attempted to use
APA v.7 format but
was inco
ect
No reference list
provided OR students
simply copy and
posted link for website
Score Breakdown:
• The maximum points you will be awarded for this assessment item total 90 points.
• However, note that your final grade will be out of 25%.
ECON3057 – Health Economics: Theory and Policy – Graded Worksheet (25%) 2021/2022, Semester 2
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• You will see this final grade listed against your name on the course page. For example, if you
are awarded 70/90 points your final grade for this assessment item will be 19.4% (70/90 * 25)
Question 1 (20mks)
Question Two (30mks)
Question Three (20mks)
Question Four (20mks)
Ru
ic for assessing the Worksheet