Chapter 7: Production Concept in Health Care

Question 1

Goods and services cannot be produced without utilizing the factors of production such as

Answer 1

Land, labor, capital, and entrepreneurship

Question 2

Critical decisions/questions made when it comes to health care sector

Answer 2

What services/goods should be given priority - vaccination program or improved housing conidtions?
How much of which services/goods should be produced first?

Question 3

Transformation of inputs into outputs

Answer 3

Production

Question 4

The result that has been created by the inputs

Answer 4

Output

Question 5

The factors of production are called the

Answer 5

inputs of production

Question 6

What are the two types of outputs

Answer 6

Goods and Services

Question 7

Is the process by which inputs are turned into outputs

Answer 7

The technology of a firm

Question 8

Factors of production are classified into

Answer 8

Fixed Factor and Variable Factor

Question 9

Remains constant regardless of the volume of production

Answer 9

Fixed Factor

Question 10

Changes in accordance with the volume of production

Answer 10

Variable Factor

Question 11

Two aspects of the production decision

Answer 11

The ability to produce

The willingness to produce

Question 12

Prescribed by resources availability (related to resource costs) and state of technology

Answer 12

The ability to produce

Question 13

Prescribed by the profit incentives (production benefits relative to production cost)

Answer 13

The willingness to produce

Question 14

Technical name given to a relationship between quantities of various inputs used and the maximum output that can be produced with those inputs used per unit of time.

Answer 14

The production Function

Question 15

Shows what is technically feasible when the firm operates efficiently

Answer 15

the production function

Question 16

The quantities of one or more production factors cannot be changed or that the use of at least one factor of production cannot be changed.

Answer 16

Short-Run

Question 17

Also known as fixed inputs

Answer 17

Short-Run

Question 18

All factors can be chagned

Answer 18

Long-Run

Question 19

The three production conepts

Answer 19

Total Product TP
Marginal Product MP
Average Product AP

Question 20

Refers to the total amount of medical services or goods produced

Answer 20

Total Product

Question 21

The output per unit of a particular product is obtained by dividing total product by its corresponding units of labor.

Answer 21

Average Product

Question 22

Measures the productivity of labor in terms of how much, on average, each laborer can perform.

Answer 22

Average Product

Question 23

The extra product or output added by 1 extra unit of that input while other inputs are held constant

Answer 23

Marginal Product

Question 24

It is considered as the slope of the Total Product Curve

Answer 24

Marginal Product

Question 25

When the total product curve reaches its saturation, marginal product is

Answer 25

zero

Question 26

At the declining portion of total product, the marginal product is

Answer 26

negative

Question 27

Falling portion of the marginal product is the so-called

Answer 27

law of diminishing marginal returns

Question 28

When marginal product is grater than average product MP > AP The average product _____ as labor ______

Answer 28

Increases; Increases

Question 29

When marginal product is equal to average product MP=AP The average product is _____

Answer 29

Constant

Question 30

When marginal product is less than the average product MP < AP The average product will _____ as labor input ____

Answer 30

Fall; Increases

Question 31

Describes a pattern in most production portion in the short-run.

Answer 31

Law of Diminishing Marginal Returns

Question 32

Meaning "Equal" in greek

Answer 32

Iso

Question 33

Short of Quantity

Answer 33

Quant

Question 34

Curve which shows all possible combinations of inputs that yield the same level of output

Answer 34

Isoquant

Question 35

Characteristics of Isoquant curve

Answer 35

Isoquants further from the origin represent greater output levels Isoquants do not intersect Isoquants are usually convex to the origin Isoquants are negatively sloped

Question 36

Why are Isoquants usually convex to the origin

Answer 36

Because of the Diminishing Marginal Rate of Technical Substitution

Question 37

When a producer is willing to give up less and less of capital to gain additional amount of labor and still lie on the same isoquant.

Answer 37

Marginal Rate of Tehnical Substitution

Question 38

Straight line showing the different combinations of capital and labor that a firm can purchase or hire given his total outlay and the factor prices

Answer 38

Isocost

Question 39

A series of isocost lines

Answer 39

Isocost map

Question 40

Relates the change in output to a proportionate change in the amount of input used

Answer 40

Return to Scale

Question 41

when a percentage increase in all factor inputs leads to a greater percentage in output

Answer 41

Increasing return to scale

Question 42

When a percentage increase in all factor inputs leads to a proportionately equal increase in output.

Answer 42

Constant Returns to scale

Question 43

When a percentage increase in all factors inputs leads to a less than proportional increase in output.

Answer 43

Decreasing return to scale

Question 44

Tagalog expression meaning "new heroes"

Answer 44

Bagong Bayani