Health economics: practice question

A PSM question in the style of the NEET PG paper. Answer it first, then read why the right option is right and why each of the others is wrong.

Try it

PSM · Health economics

Sample item

What does cost-effectiveness analysis commonly compare?

Original practice item, not a recalled exam question. Nothing here is recorded.

The answer and the reasoning

B. Costs relative to health outcomes such as cases prevented or life-years gained

Cost-effectiveness analysis compares the additional resources used by interventions with additional health outcomes, helping allocate limited health-care resources.

Option by option

  • A. Only the purchase price of a medicine

    Purchase price ignores downstream costs and outcomes.

  • B. Costs relative to health outcomes such as cases prevented or life-years gained (correct)

    Correct: it links resource use to measurable health benefit.

  • C. Patient satisfaction without resource use

    Satisfaction alone is not the usual effectiveness denominator.

  • D. The political popularity of an intervention

    Political popularity is not an economic outcome measure.

Source note: Original NextPrep sample item — pending expert review. This item is original practice material awaiting independent expert review, so confirm important facts in a standard textbook.

More PSM questions

Questions about this PSM question

What is the answer to this PSM question?

The best answer is B, Costs relative to health outcomes such as cases prevented or life-years gained. Cost-effectiveness analysis compares the additional resources used by interventions with additional health outcomes, helping allocate limited health-care resources.

Why is "Only the purchase price of a medicine" not the answer?

Purchase price ignores downstream costs and outcomes.

Why is "Patient satisfaction without resource use" not the answer?

Satisfaction alone is not the usual effectiveness denominator.

Why is "The political popularity of an intervention" not the answer?

Political popularity is not an economic outcome measure.

What concept does this question test?

It tests Health economics in PSM. The correct option holds because: Correct: it links resource use to measurable health benefit.

How hard is this question?

We tag it as an application question: it asks you to use a fact on a patient or a finding. The tag is our own editorial judgement, not an official difficulty rating, so read the reason for every option, not only the answer.

How should I study Health economics?

Practise biostatistics with small calculations until sensitivity, predictive values and risk measures are automatic. Then use the flashcards and the other PSM questions on this site to test what stuck.

Is this a real NEET PG question?

No. It is an original practice item (editorial status: sample, version 1). NextPrep does not publish recalled or leaked questions, and independent faculty review of this item has not been completed yet, so confirm important facts in a standard textbook.