1. Multiple Choice: Which of the following is a key principle of health economics? A) Cost-effectiveness B) Demand management C) Resource allocation D) All of the above Correct Answer: D) All of the above Rationale: Health economics is concerned with how scarce resources are allocated among alternative uses for the care of sickness and the promotion, maintenance, and improvement of health. This includes the study of how health care resources are allocated, including the assessment of cost-effectiveness, demand management, and resource allocation. 2. True/False: The Beveridge Model relies on private insurance for funding healthcare. Correct Answer: False Rationale: The Beveridge Model, named after social reformer William Beveridge, is funded