Kenyatta University School Of Economics
Bachelor Of Economics (Economics)
Exam Name: Health Economics
Course: Bachelor Of Economics (Economics)
Institution/Board: Kenyatta University School Of Economics
UNIVERSITY EXAMINATIONS 2010/2011
SECOND SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF ARTS, BACHELOR OF EDUCATION AND BACHELOR OF ECONOMICS
EAE 309: HEALTH ECONOMICS
DATE: Friday 1st April 2011 TIME: 4.30 p.m – 6.30 p.m
Answer question 1 and any other two questions.
1 a) Explain the Grossman’s model, clearly giving its prediction (10 marks)
b) In case of a situation where there is only one provider of health care in the society, there is likelihood of welfare loss due to inefficiency of the provider. Explain the statement using a diagram. ( 8 marks)
c) With the aid of a diagrams, explain the effect of the following on the health insurance demand: decrease in premiums, increase in expected loss, and increase in individual wealth. (12 marks)
2 ) Given the poverty levels in the country and the unstable financial support from development partners for the provision of health services in the country, explain at least four sources of funding that may be sustained in the long runto finance provision of health care. Give advantages and disadvantages of each of the source of financing. (20 marks)
3 a) What is decentralization? Explain at least three different types of decentralizations. (8 marks)
b) Distinguish between adverse selection and moral hazard in health insurance. (4 marks)
c) Discuss, cost effectiveness analysis in evaluation of health care programmes. (8 marks)
4) You have been asked to cost the existing family planning services in one district in Kenya over the next five years. Your results will be compared with another district where family planning services are organized differently. Assuming the two approaches achieves similar results.
a) Outline the categories of data which you would need to collect.
b) How would you collect the data? For what time period? From which sources?
c) Would any of the costs need to be adjusted to obtain their real values?
d) How would you deal with allocation issues?
e) Do you need to apply discounting?
f) Are you uncertain about any of your values? How might you deal with that?
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