Chapter 7 Cost benefit analysis Pe

Wage rates: The "average" person works _____ days/year:

1.) 240 days/year

_______ days/yr - ____vweekend days - ___ vacation days - __ sick leave days

1.) 365 2.) 104 weekend days 3.) 14 vacation days 4.) 7 sick lave

Disadvantages of the Human Capital method (HC) may be biased against some people b/c it assumes that if they're not working, they have no economic benefit; renders bias for _________ and ___________ population

1.) Children 2.) Unemployed elderly

In conducting a CBA (Cost Benefit Analysis) you must:

1.) Determine the type of program/intervention to be considered 2.) Identify possible alternatives

When conducting at Cost-Benefit Analysis (CBA) costs includes _______ and ____________ costs

1.) Direct Medical costs 2.) Indirect Medical costs

When conducting at Cost-Benefit Analysis (CBA), benefits includes ________, ________, and ___________

1.) Direct benefits 2.) Indirect benefits 3.) Intangible benefits

When conducting at Cost-Benefit Analysis (CBA), Direct benefits includes direct ________ and direct ___________

1.) Direct medical savings 2.) Direct non-medical savings

Possible alternatives for CBA (3)

1.) Do nothing (or compare to current treatment, etc.) 2.) Implement a similar program larger or smaller in scale 3.) Implement a different type of program

The _________ measures Indirect benefit while the _________ measure intangible benefits

1.) Human Capital Method (HC) 2.) WTP

Yearly wage rates (when calculating HC) are used for programs/interventions that would reduce __________ disability or death; Daily wage rates are used for ___________ illnesses or for chronic illnesses with episodes of ___________ disability

1.) Long-term (e..g pneumococcal vaccine) 2.) Acute illnesses 3.) Short-term disability

Disadvantages of the Human Capital method (HC) is that

1.) May be biased against some people 2.) Earnings for some may not equal the value of their output 3.) Values for pain and suffering are not included if they do not impact productivity

4 categories of missed days when calculating wage rates (for HC)

1.) Missed work 2.) Missed Housekeeping 3.) Restricted activity days 4.) Caregiver time

One Cost-Benefit Analysis (CBA) disadvantage is that the values determine for ___________ and _________ lost from human life is controversial

1.) Morbidity 2.) Mortality

When conducting at Cost-Benefit Analysis (CBA), intangible benefit includes patients ____________, _________, and _________

1.) Patient preference 2.) Pain and suffering 3.) Willingness to pay

When conducting at Cost-Benefit Analysis (CBA), indirect benefits includes _________ and __________

1.) Productivity 2.) Human capital willingness to pay

Advantages of the Human Capital method (HC) is that is (3)

1.) Straightforward and easy to measure 2.) Income estimates are available from public sources 3.) Days lost from illness are readily obtained from patients or other secondary sources

Human Capital Method (HC) measures __________ and ________ losses b/c of illness, disability, or death

1.) Wage 2.) Productivity losses

Human Capital Method (HC) components are _________ and _________

1.) Wage rate 2.) MIssed times (days or years)

Wage rates include _________ wage rates and _________- wage rate

1.) Yearly wage rates 2.) Daily wage rates

When doing the Human Capital method approach (HC), the income or wage rates should include _______ benefits

Fringe benefit

Increases in productivity or earnings because of a program/intervention is an example of _________ Benefit

Indirect benefits

One Cost-Benefit Analysis (CBA) disadvantage is that placing economic values on __________ outcomes is not easy; no universal agreement exists on one standard method to accomplish this

Medical Outcomes

Cost-Benefit Analysis (CBA) Advantage is that many different outcomes can be compared as long as they are valued in ____________

Monetary units

Cost-Benefit Analysis (CBA) compares both costs and benefits in ________ units

Monetary units

Disadvantages of the Human Capital method (HC) is that values for pain and suffering are not included if they do not impact productivity including things that impact health related ________ but may not affect producting

Quality of life

Human Capital Method (HC) assumptions is that the value of _________ = economic ________ they permit

value of health benefits = economic productivity they permit