Health economics: 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 · Health economics

Sample item

What is an incremental cost-effectiveness ratio?

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

The answer and the reasoning

D. Additional cost divided by additional health benefit

The incremental cost-effectiveness ratio compares extra cost with extra benefit when choosing between interventions, often expressed per life-year or QALY gained.

Option by option

  • A. Cost of one laboratory test only

    Single-test price omits outcomes.

  • B. Percentage of patients dissatisfied

    Dissatisfaction alone is not the ICER denominator.

  • C. Total hospital cost divided by bed number

    Bed costs do not compare intervention effectiveness.

  • D. Additional cost divided by additional health benefit (correct)

    Correct: ICER measures marginal resource use per marginal benefit.

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.

More PSM questions

Questions about this PSM question

What is the answer to this PSM question?

The best answer is D, Additional cost divided by additional health benefit. The incremental cost-effectiveness ratio compares extra cost with extra benefit when choosing between interventions, often expressed per life-year or QALY gained.

Why is "Cost of one laboratory test only" not the answer?

Single-test price omits outcomes.

Why is "Percentage of patients dissatisfied" not the answer?

Dissatisfaction alone is not the ICER denominator.

Why is "Total hospital cost divided by bed number" not the answer?

Bed costs do not compare intervention effectiveness.

What concept does this question test?

It tests Health economics in PSM. The correct option holds because: Correct: ICER measures marginal resource use per marginal benefit.

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 Health economics?

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.