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Health - the state of mental, physical and social well being and does not merely connote the

absence of illness.
Health economics- deals with the manipulation of factors that should be able to give people better health

Objective measurements of health status and disease Parameters used to measure the health condition of individuals, communities or countries Standardized measures which are understood and applied internationally state of health

Ratio Mortality


Distinct figures Nutritional Status

Life expectancy

Also used for monitoring and measuring the effectiveness of health activities and programs that seek to improve health.
Can be done by comparing these health indicators, before and after program has been implemented

Health outcome before the health program


Health outcome after the health program

Health program

Directly affect the health status or outcomes Direct May be innate (e.g. nutrient intake and fertility) May also be ecternal (e.g. Envi contamination, injuries and health care service utilization

High Intake of dietary fats which results in high blood cholesterol levels Constant exposure to air pollution which results in chronic lung diseases

Influences health outcomes indirectly

Root Cause, what lies beneath But have influence on the proximate factors

Will ultimately influence the activities, exposures and attitudes of the individuals, households and communities towards health

Individual Age, Sex Education Occupation Health Attitudes

Household Income/wealth Social Network Community Markets and prices Ecological Climate Transportation Size, Structure and Distribution Social Structure and Organization

Underlying factors AFFECT proximate factors which then AFFECT health outcomes.

Underlying Factors

Proximate Factors

Health Outcomes

Individual Level

Occupation as a coal miner

Exposure to mining contaminants

Increased incidence of workers lung disease

Household Level

Low Household Income

Poor Nutritional intake

Poor Nutritional Status

Community Level

Poor transportation/Trans portation network

Poor health care service utilization

More Deaths in area

Improvement in Health Status

More budget/resources allocated for health

Improvement in Worker productivity

Contributes to better economy

You can even make a parrot into a learned economist- all it must learn are two words: supply and demand.


Why do halo halo stores sprout during summer? Why did oil prices increase during the Persian Gulf War in 1991? Why are fire crackers very expensive days before New Years Eve and are almost given away a few hours before midnight of December 31?

Demand emanates from consumers. To be able to satisfy their needs and wants.

Supply and Demand Dynamics- relationship between buyers who demand, and producers who create a supply of goods

Things that individuals must have to be able to survive or to be in a state of physical, social and mental equilibrium.

E.g. Maslow's Hierarchy of Needs

Specific preference or a choice to be able to satisfy a need Specific manifestation of a need Can be derived from a need

Decision to satisfy a want or need plus the capability of accessing and paying for such.

Emanates from producers and sellers The other side of the demand supply interaction Producers produce and sell to make profits

Remember that consumers prefer lower prices, while producers and sellers prefer higher prices

Are produced when demand forces from consumers and producers and sellers interact with one another
Dynamic and constantly changing phenomenon


Producers and Sellers

Satisfy: Needs Wants Demand

Profits Supply

Preference: Low Prices Markets

Preference: High Prices

Represents the relationship between the price of a certain product and the quantity that consumers want to buy of such product. Graphically represented by the demand curve

relationship between the price of a certain product and the quantity the producers will be willing to produce and sell Graphically represented by the supply curve