Demography: cost-effectiveness analysis: practice question

A PSM question in the style of the NEET PG paper. Answer it first, then read why the right option is right and why each of the others is wrong.

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PSM · Demography: cost-effectiveness analysis

Sample item

In cost-effectiveness analysis, alternative interventions are compared on the basis of:

Original practice item, not a recalled exam question. Nothing here is recorded.

The answer and the reasoning

B. Cost per unit of a natural health outcome such as life year gained

Cost-effectiveness analysis expresses outcomes in health units, such as cases detected or life years gained, and compares cost per unit. Cost-benefit analysis converts both costs and benefits into money.

Option by option

  • A. Net monetary benefit alone

    Monetary benefit is cost-benefit analysis.

  • B. Cost per unit of a natural health outcome such as life year gained (correct)

    Correct. Cost per natural unit of outcome.

  • C. Number of beneficiaries only

    Beneficiary count alone ignores cost.

  • D. Cost per rupee of benefit

    Benefit-cost ratio is cost-benefit analysis.

Source note: Original NextPrep sample item — pending expert review. This item is original practice material awaiting independent expert review, so confirm important facts in a standard textbook.

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Questions about this PSM question

What is the answer to this PSM question?

The best answer is B, Cost per unit of a natural health outcome such as life year gained. Cost-effectiveness analysis expresses outcomes in health units, such as cases detected or life years gained, and compares cost per unit.

Why is "Net monetary benefit alone" not the answer?

Monetary benefit is cost-benefit analysis.

Why is "Number of beneficiaries only" not the answer?

Beneficiary count alone ignores cost.

Why is "Cost per rupee of benefit" not the answer?

Benefit-cost ratio is cost-benefit analysis.

What concept does this question test?

It tests Demography: cost-effectiveness analysis in PSM. Cost-benefit analysis converts both costs and benefits into money.

How hard is this question?

We tag it as an application question: it asks you to use a fact on a patient or a finding. The tag is our own editorial judgement, not an official difficulty rating, so read the reason for every option, not only the answer.

How should I study Demography: cost-effectiveness analysis?

Practise biostatistics with small calculations until sensitivity, predictive values and risk measures are automatic. Then use the flashcards and the other PSM questions on this site to test what stuck.

Is this a real NEET PG question?

No. It is an original practice item (editorial status: sample, version 1). NextPrep does not publish recalled or leaked questions, and independent faculty review of this item has not been completed yet, so confirm important facts in a standard textbook.