Economics
It is the study of the proper allocation and efficient use of scarce resources to produce commodities for the satisfaction of unlimited needs and wants of man.
Microeconomics
It deals with economic behavior of individual components such as household, firm, and individual owner of production with a view to understand decision-making in the face of scarcity and the consequences of these decisions.
Macroeconomics
It deals with the behavior of the economy as a whole with a view to understand interactions between economic aggregates such as national income, employment and inflation.
Positive Economics
It is an analysis of economic behavior that uses economic theory and empirical analysis to explain what is or what happened.
Normative Economics
It incorporates ethics and value judgements about what the economy should be like or what particular policy actions should be recommended to achieve a goal.
Allocative Efficiency
Refers to a condition in which the optimal amount of output is produced given the underlying structure of social benefits and costs.
Opportunity Cost
Refers to the value of what is given up by not pursuing the next best alternative.
Production Efficiency
refers to a condition in which one activity either production or consumption cannot be increase without reduction on another activity because the maximum amount of output is produced from a limited amount of inputs.
Land
Refers to naturally occurring materials of the earth that are used for the production of goods and services. Payment is rent.
Labor
This refers to the available physical and mental talents of the people who have to produce goods and services. Payment is wage.
Capital
Economics the term capital does not refer to the business sense of financial capital, but instead to things that are tangible or physical goods that a person creates. Payment is that a person creates. Payment is interest.
Entrepreneur
Refers to people that combines the 3 other factors of production to create some products or services to sell. Payment is profit.
Economic System
Refers to a set of economic institution that dominates a given economic problems and proper allocation of health care resources.
Market
Described as a venue or any method by which those needing goods and services can communicate with those producing goods and services.
Traditional Economic System
It is a system whose past is a system whose past experiences which are handed down from generation to generation are used as basis for economic decision.
Command System
determinants of production, distribution, and allocation of health resources are owned and managed by the state.
Free Market System
Allocates health resources according to consumer's purchasing behavior.
Mixed System
Combined parts of the command system with the elements of free market..
Efficiency
It is define as the optimal or best use of resources.
Economic Efficiency
occurs when society is using its scarce resources to produce the highest possible quantity of goods and services that consumers wanted to buy.
Productive Efficiency
Is when the operation of the economy used the least amount of health resources to produce certain health care at the lowest possible cost.
Allocative Efficiency
Is a condition in which the optimal amount of output is produced given the underlying structure of social benefits and costs.
Pareto Efficiency
It is impossible to change that allocation to make more one good/service better, without making another less good/service worse off.
Equity
Refers to the actions, treatment of others, or a general condition characterized by justice, fairness, and impartiality.
Horizontal Equity
Is concerned with the equal treatment of equal need.
Vertical Equity
Is concerned with the extent to which individuals who are unequal should be treated differently.