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.

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PSM · Health economics

Sample item

What is opportunity cost in health-resource allocation?

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

The answer and the reasoning

A. Benefit forgone by not choosing next best option

Opportunity cost is the health benefit or resource value lost when one option is chosen instead of the best alternative use.

Option by option

  • A. Benefit forgone by not choosing next best option (correct)

    Correct: every choice displaces an alternative.

  • B. Value of a single laboratory test

    Single test price is not foregone benefit.

  • C. Total money spent on one hospital

    Total spending is not opportunity cost.

  • D. Cost of a medicine label

    Label cost is trivial direct expense.

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 A, Benefit forgone by not choosing next best option. Opportunity cost is the health benefit or resource value lost when one option is chosen instead of the best alternative use.

Why is "Value of a single laboratory test" not the answer?

Single test price is not foregone benefit.

Why is "Total money spent on one hospital" not the answer?

Total spending is not opportunity cost.

Why is "Cost of a medicine label" not the answer?

Label cost is trivial direct expense.

What concept does this question test?

It tests Health economics in PSM. The correct option holds because: Correct: every choice displaces an alternative.

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.