Question

Define the following terms in your own words: economics, health economics, public health economics, public health finance, gross national product, gross domestic product, consumer price index, and human capital. How do these terms relate to your work as a nurse?

Answer 1

1. Economics

In general, economics is a part of social science, which includes the study of production, distribution, and consumption of commodities and services related to the consumers. It is broadly divided into microeconomics which analyzes the basic elements like consumer- market interaction in the economy and macroeconomics analyzes the whole economy like production and investment.

2. Health economics

  The branch of health economics deals with issues related to health and healthcare such as efficiency, effectiveness, value and behaviour in the production and consumption of health and healthcare. It considers the functioning of healthcare systems and the behaviours which affect health.

Health economists consider the various types of financial information like costs, charges and expenditures.

3. Public Health Economics

Public Health deals with the collective aim of the community to improve health and reduce inequalities in health. Public health Economics the science which considers the best use of available resources to meet the public health aims of the community.    

4. Public health finance

Public health finance considers the supply of community resources for the delivery of public health function. Financial management principles are utilized to maximize the use of resources. Public health finance assesses the acquisition, utilization, and management of resources in public health.

5. What is Gross National Product - GNP

Gross national product (GNP) is a measure of the productivity of the nation. It is assessed based on the gross value of all the final products and services in a given period by the means of production and owned producers in the country. GNP must start with GDP.

6. Gross Domestic Product - GDP

Gross domestic product (GDP) is the economic value of the finished commodities and services produced within a country in a particular year or time period. It can be calculated quarterly or annually. GDP can be considered as the nation’s overall economic activity.

7. A consumer price index (CPI)

CPI is a statistical estimate by utilizing the sample representative items. The price of the samples is estimated periodically. CPI also measures the price level of consumer goods and services purchased by consumers.

8. Human capital

Human capital is a scarce resource and it represents the knowledge, experience and skills of the worker.

Human capital is considered as the renewable sources of productivity. Human capital is the basic employee force which can be modified by training.

The healthcare economics and Nursing:

Health care economics is very important in the management of the nation’s healthcare system. The general economic principles also impact the healthcare economics. The economic portion for the development if the healthcare will be allocated based on the gross national economics. The concepts in general economics are also applicable in the healthcare sector as it involves services to consumers. The cost containment and cost-effectiveness principles should be implemented by all the healthcare professionals for the effective utilization of available resources.

All the healthcare programs will also be affected by the availability of funds and the portion of funds for the healthcare sector will be provided based on the national economic status and data.