Economic Terms

-A) Define the following: 1. Scarcity - Economics: the basic economic problem which arises from people having unlimited wants while there are and always will be limited resources. Because of scarcity, various economic decisions must be made to allocate resources efficiently. - Health: is having unlimited needs of health resources even if there are limited availability of health services. 2. Resources - Economics: The total means available for economic and political development, such as mineral wealth, labor force, and armaments. - Health: the total available health services for the people. 3. Economics - Economics: the science that deals with the production, distribution, and consumption of goods and services, or the material welfare of humankind. - Health: deals with the production, distribution, and consumption of health services and health resources. 4. Demand - Economics: The desire to possess a commodity or make use of a service, combined with the ability to purchase it. - Health: the need to have the availability of using or making use of the health resources. 5. Supply - Economics: The amount of a commodity available for meeting a demand or for purchase at a given price. - Health: the sum of a health service or health resources available for purchase of the people. B) What are the Determinants of Health? - The determinants of health according to Public Health Agency of Canada and WHO are the ff.: 1. Income and social status 2. Social support networks 3. Education and literacy, e.g. health literacy 4. Employment/Working conditions 5. Social environments 6. Physical environments 7. Personal health practices and coping skills 8. Healthy child development 9. Biology and genetic endowment 10. Health services 11. Gender 12. Culture C) What are the Principles of Economics?

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Scarcity: Economists study situations where needs or wants exceed means. Therefore, people have to make choices. Rationality is assumed to guide people's choices or decisions. They systematically gauge all pros (benefit or "utility") and cons ("cost") of all alternatives or options they are facing when deciding. Preferences: People are equipped with fixed and given preferences that allow them to assign utilities to all options, and to choose the option that maximizes (net) utility. Restrictions: People face constrains that they cannot change themselves, and thus have to take as given (such as budgets, input cost etc.). Maximization is always constraint by restrictions. Opportunity Cost is induced by scarcity, and by the need to make choices. All choices always involve opportunity cost because deciding in favor of one option always means deciding against some other option(s). There are two main aspects of opportunity cost: 1) Utility maximizing choices induce opportunity cost to be minimal (static aspect). 2) Choices may be revised when opportunity cost rises (dynamic aspect). The Economic Principle is the application of rationality to situations of scarcity: Minimize cost with regard to a given goal (e.g., level of utility) OR maximize utility for a given level of cost or input. Hence the "economic principle" frames situations as a minimizing or a maximizing problem, and allows to assess efficiency. Do not mix the two formulations! Applying the principle avoids wasting valuable resources. Efficiency of activities, rules, transactions or distributions is a basic theme in economic analysis. Efficiency is most often assessed either in terms of the economic principle (minimize cost or maximize utility) or the Pareto criterion (with regard to transactions and distributions). Marginal Analysis is a typical way for economists to look at problems. They analyze decisions in terms of marginal benefits and marginal costs. Marginal thinking is rather uncommon among non-economists, however. Equilibrium is a fundamental notion in economic analysis. Basic economic models deal with the comparison of two (or possibly more) equilibria (comparative statics). Economist think in terms of equilibria, which are situations where no one has an incentive to change his or her behavior. The Nash equilibrium is the most fundamental formulation of the concept of equilibrium as used in economics. Game Theory is an approach to study situations of interdependence where people have incentives to think and behave strategically.

D) What are the Health Policies created by the Philippine Government (If there are, specify which administration it was enacted) 1. Administrative Order No. 2007-0032 - Regulations on the Issuance of a License to Operate to Companies that Manufacture, Import or Distribute Toys for the Philippine Market 2. Administrative Order No. 2007-0028 - Implementing Guidelines of EO No. 663 "Implementing the National Commitment for Bakuna ang Una

sa Sanggol at Ina", Attaining the WHO's Goal to Eliminate Measles and Neonatal Tetanus, Eradicate Polio, Control Hep B and Other Vaccine Preventable Diseases 3. Administrative Order No. 2007-0027 - Revised Rules and Regulations Governing the Licensure and Regulation of Clinical Laboratories in the Philippines 4. Administrative Order No. 2007-0025 - Revised Guidelines for Conducting Medical Fitness Examination for Seafarers (download related documents and requirements) 5. Administrative Order No. 2007-0024- Guidelines for the Licensure of Department of Health Hospitals 6. Administrative Order No. 2007-0023 - Schedule of Fees for the One-Stop Shop Licensure System for Hospitals 7. Administrative Order No. 2007-0022- Violations under the One-Stop Shop Licensure System for Hospitals 8. Administrative Order No. 2007-0021- Harmonization and Streamlining of the Licensure System for Hospitals 9. Administrative Order No. 2007-0017- Guidelines on the Acceptance and Processing of Foreign and Local Donations During Emergency and Disaster Situations 10. Administrative Order No. 2007-0015-A - Amendment to AO No. 0015 "Revised Guidelines in the Management and Prevention of Schistosomiasis 11. Administrative Order No. 2007-0015 - Revised Guidelines in the Management and Prevention of Schistosomiasis 12. Administrative Order No. 2007-0011 - Repeal of A.O. 118-B s.1992 entitled "Rules and Regulations Governing the Accreditation of Clinical Laboratories for the Training of Medical Technology Interns" 13. Administrative Order No. 2007-0019 - Guidelines for the Implementation of the Quality Assurance System on Direct Sputum Smear Microscopy (DSSM) 14. Administrative Order No. 2007-0012 - Philippine National Standards for Drinking Water 2007 15. Administrative Order No. 2007-0014 - Guidelines on the Issuance of Certificate of Product Registration for Equipment or Devices Used for Treating Sharps, Pathological and Infectious Waste 16. Administrative Order No. 2007-0007 - Guidelines in the Implementation of Oral Health Program for Public Health Services 17. Administrative Order No. 2007 - 0003 - Policies and Guidelines Governing the Registration and Licensing of Establishments Dealing with Medical Devices 18. Administrative Order No. 2007-0001 - Revised Schedule of Fees for Certain Services Rendered by the Bureau of Health Facilities and Services and Centers for Health Development in Relation to the Regulation of Health Facilities and Services and Validity Period of License

to Operate, Accreditation, Authority to Operate, and Clearance to Operate for Certain Health Facilities and Services