• Describe what is meant by opportunity cost and how it relates to cost as economists measure it
• Describe the time trade-off as it applies to health care
• Describe different approaches to measuring QALY.
• Identify “sunk cost”.
• Describe Pareto optimality
• Explain contingent valuation as it applies to health care
• Identify examples of risk-dollar trade-off in health care

If you were setting up a program for the prevention, diagnosis, and treatment of breast cancer in a low-income country, which types of costs would you include in the cost-effectiveness analysis (CEA?) For each type of costs you mention, how would you measure it?

Identify, research and describe one example of the use of benefit-cost analysis and cost-effectiveness analysis in public decision making. What makes the example compelling in terms of informing future policy decisions?

Select ONE of the following topics and write a 4-5 paper exploring how Behavioral Economics can be/has been applied to the issue and explore how the solution can be “taken to scale” across a system. What kinds of issues do health care managers need to focus on in terms of implementing the approach?

• preventable ED visits
• choice of health insurance plans
• weight loss/obesity