BASIC ECONOMIC PROBLEMS

What to produce and how much? - Society must decide what medical and non-
medical goods and services should be produced and in what quantities.
How to produce? - This is a question of production method that will be used to
produce medical and non- medical goods and services. This involves finding the
efficient and effective technique for production.
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
What is the difference between goods and services?
→ Goods are intangible , something you can see, feel and touch , while service is
something not physical that requires scarce resources to produce and satisfies
human wants.
Altruism
ALLOCATION OF HEALTH CARE RESOURCES – THE BASIC ECONOMIC SYSTEM
Allocation of Health Care Resources
ECONOMIC SYSTEM
 Economic system
 Traditional
 Market or capitalism
 Command
 Mixed