Chapter 3 Notes ECON

Chapter 3 Notes ECON - CHAPTER 3 Types of Costs Direct...

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CHAPTER 3 Types of Costs Direct medical care costs – all costs incurred by medical care providers such as the costs of tests , cost of administering cared and cost of follow up treatment direct non medical cost – all monetary costs imposed on any non medical care personnel including patients, such as transportation costs and dietary restrictions indirect costs – time costs associated with the implementation of the treatment such as lost productivity due to injury, disability, or loss of life cost identification analysis can provide a sense of the total cost associated with various medical conditions or health behaviors but dose not help in decision-making between alternative treatment methods COST BENEFIT ANALYSIS It is in the economic agent's best interest to make a particular choice when the decisions expected benefits exceed the expected costs. Total Social Benefit (TSB) – the money value of the satisfactions generated from consuming a good or service.
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