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HEALTH ECONOMICS MOCK EXAM 2022 ONLINE OPEN BOOK EXAMINATION Questions 1 – 3 are the actual questions from the 2021 exam. Q4 is a mock question, as the material in Topic 6 has changed. Please note that questions in Section A can cover any material in Topics 1 – 3 and questions in Section B can cover any material in Topics 4 – 6. That is, some questions may span multiple topics. INSTRUCTIONS SPECIFIC TO THIS EXAM There are two sections in this exam; Section A and Section B. Each Section contains two questions. Answer ONE question from Section A and ONE question from Section B. Each question is marked out of a possible 100 marks. Marks and word limits for component parts of questions are clearly shown in parentheses.
Your answers should be typed. You can include images of algebra or figures as long as the quality is sufficient so that it can be easily read. Where relevant, questions include word limits. These are limits, not targets. Excellent answers can be shorter than the word limit. If you go beyond the word limit the additional text will be ignored. Where a question includes a word limit you HAVE to include a word count for your answer (excluding formulae).
This is an ‘open book’ exam, and you are allowed to consult your lecture materials. Candidates are therefore reminded that it is important to show understanding and, where appropriate, critique. Simply reproducing material from the lecture notes is not enough to guarantee good marks.
GENERIC INSTRUCTIONS RELATING TO ONLINE EXAMS AND SUBMISSIONS
Please refer to instructions in the “May/June Exam” folder in the “Assessment” tab of BlackBoard for further generic information and instructions relating to formatting, word limits, timings, referencing, IT problems and submission.
Section A: Answer ONE question from this section 1. (a) You are asked to help the National Health Service (NHS) derive demand functions for general practice (GP) in England. The NHS provide you with data for 2020 on the number of GP appointments made in England. State, with justification, three other pieces of information you would like from the NHS to include in the derivation of the demand functions. (20 marks; 300 words)
(b) “Supplier induced demand is a major source of concern in health care”. Outline the key assumptions of supplier induced demand and show it graphically. Then, by summarising and critiquing the existing evidence, state if you believe supplier induced demand does exist in the market for health care. (80 marks; 1200 words)
2. (a) What is price discrimination and why is it more common in the markets for health care than in other industries? (20 marks; 300 words)
(b) By introducing and describing relevant economic concepts, discuss whether you think that hospitals should be big and encouraged to merge. You should back-up your opinions by referencing appropriate studies and commentary pieces. (80 marks; 1200 words)
Section B: Answer ONE question from this section 3. (a) In recent years, governments around the world have worried that individuals are drinking too many sugary drinks.
(i) Explain why externalities of sugary drink consumption may lead to a level of (private) consumption which is above the socially efficient level of consumption. (10 marks; 150 words)
(ii) Via the use of graphs, explain how taxation could be used to correct for market failure in the market for sugary drinks. (10 marks; 100 words)
(iii) Discuss alternative ways in which the government could intervene to generate social efficiency in this market. (30 marks; 500 words)
(b) Discuss two methods of retrospective payment to hospitals in health care. What are the consequences in terms of incentives relating to costs and quality? How do the incentives of retrospective payment differ from the incentives of prospective payment to hospitals in health care? (50 marks; 750 words)
4. (a) Define the concept of “catastrophic health expenditure”, describe why it is not desirable, and describe at least two interventions to reduce this phenomenon implemented in a LMIC of your choice. (60 marks; 1,000 words)
(b) Critique or support the implementation of community-based health insurance as an instrument to finance health care in an East African country. Motivate your answer with at least two arguments (in favour or against). (40 marks; 500 words)