ECONOMICS

A social science that studies individuals and organizations

engaged in the production, distribution and consumption of
goods and services.
Two divisions of economics:

1. Macroeconomics

2. Microeconomics
 Health economics also refers to the proper
allocation and utilization of the resources to satisfy the
unlimited needs and wants of the people.
There are problems of allocations that are often formalized
by economists in terms of technical productivity
( maximizing the output from any given input ), cost
minimization ( choosing the least expensive set of inputs ),
and current economic e ciency ( balancing marginal costs
and marginal bene ts ).
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Health and medical care is now one of the human basic
needs, ranking after clothing and shelter.
Combination of value and e ciency, a criterion used in the
planning and management of the health system.
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 Purpose of a Good Economic System:

A better and good economic system has to consider the

following:

a. Determining what is to be produced. ( Theory of Value )

b. Determining the users
 Economic Maintenance and Growth

Refers to keeping the productive power of the economic

machine intact through provision for depreciation.

Refers to continuous increase in the kinds and quantities of

the economy’s resources, together with continuous
improvement in techniques of production resulting in more
products of high quality at competitive prices.
 Economic Resources

The things which are needed to carry on the production of

goods and services:

a. Land
b. Labor
c. Capital
d. Technology
 Types of Economics:

A. Microeconomics- deals with the pro table performance of

entity components in economy.

B. Macroeconomics- concerned with the aggregate , or

overall, economy. Basis of which is an understanding of what
constitutes national output, or national income, and the
related concept of gross national product ( GNP ).
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 Scarcity and Choice

How does scarcity relate to supply and demand?

 Maximization Objective

Economic Gain= Maximized Output/Given Output

 Three Components of Economics:

a. Alternative Choices
b. Choices and their Costs
c. E ect of Choices on the future
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