1. Which of the following best describes the concept of

supply and demand in healthcare economics?

a. Supply refers to the quantity of healthcare services

available, while demand represents the desire and ability of

consumers to access those services.

b. Supply refers to the number of healthcare providers,

while demand represents the quantity of healthcare

resources available.

c. Supply represents the cost of healthcare services, while

demand denotes the number of healthcare consumers.

d. Supply refers to the government's allocation of

healthcare resources, while demand represents the public's

need for those resources.

Answer: a. Supply refers to the quantity of healthcare

services available, while demand represents the desire and

ability of consumers to access those services.

Rationale: Understanding the dynamics of supply and

demand is essential in healthcare economics as it helps

determine the equilibrium price and quantity of healthcare

services. In this context, supply refers to the available

healthcare services, and demand represents the consumers'

desire and ability to utilize those services.

2. When discussing health insurance, what is the meaning

of the term "premium"?

a. The amount of money paid by the insured individual for