LECTURE Introduction to health economics Ф КГМУ 4/3-04/03 ИП №6 от 14 июня 2007г. KARAGANDA STATE MEDICAL UNIVERSITY Department: History of Kazakhstan and political disciplines On disciplines:ОЕТ 1110 Bases of economic theory For specialty: General Medicine 5В Total hours: 90 (2 credits) Course: 1 Semester: 1, 2 Karaganda

Subject : Introduction to health care economy. Subject and method of the economic theory. Purpose : this lecture acquaints students with economic concepts of health care, methods, models, laws and the main categories. Also economy origin stages as sciences, since the most ancient times till today are considered. This lecture is introduction in discipline.

Plan of lecture : 1. definition of a subject of the economic theory by representatives of different schools. 2. basic economic concepts: requirements, economic benefits, limitation (rarity) of resources; three main objectives of economy: what, how, for whom? 3. methods of knowledge of economic processes. Economic laws and categories. 4. concept of economy of health care, model of health care and their system.

What is necessary to the person for the life? What is necessary to the person for the life? Friendship Clothes Product Music Heat and light Air Water love and attention

How the person satisfies their needs? Nature Relations Economy

What is the economy?

The term "economy" was first proposed by Xenophon. The word “economy” consists of two words: "oikos" (house, household), "nomos" (know, law). The original meaning of "economy" is a science of housekeeping, the art of housekeeping.

Economy - is a special sphere of public life with its laws, problems and contradictions.

Economic theory is a social science that studies the behavior of people and their groups in the production, distribution, exchange and consumption of material goods to meet the needs with limited resources, which creates competition for their use.

Definitions of the subject of Economic Theory 1.science of activities associated with the exchange and monetary transactions between people; 2.science of everyday business life of people; 3.science of wealth; 4.science of laws governing the production and exchange of material goods at the various stages of society development; 5.science of how humanity copes with its tasks in the field of consumption and production.

The structure of Economic Theory Microeconomics (economy at the level of firm) Macroeconomics (economy at the level of the state) Megaeconomics (economy between the states)

The functions of Economic Theory: 1. cognitive - studying and explaining of economic laws and phenomena; 2. practical - applying the theory of studied objects in practice, establishing the basis for economic policy of a state; 3. predictive - developing scientific forecasts of economics and society in general; 4. worldview – formation of a certain belief system on society; 5. methodological – the function which is theoretical and methodological basis for the system of economic sciences.

Economic schools or Economic trends

Representatives of this school are: 1.Thomas S. Myung 2.A. Montchretien They considered that the wealth consists in gold and silver accumulation. Mercantilism

Representatives of this school are: 1. F. Quesnay 2. Turgot A.A. They considered that wealth is the nature. Physiocrats

Representatives of this school are: 1.David Ricardo; 2.Adam Smith; 3.William Petty. They considered that the wealth consists in work. Classical school

Representatives of this school are: 1.Karl Marx; 2.Friedrich Engels They divided society on rich and poor and believes that social development is determined by material conditions of life. Marxism

Representatives of this school are: 1.Alfred Marshall 2.A. Pigou They considered that the market acts as the main wealth. Neoclassical Theory

Representatives of this school are: 1.D. Hume 2.M. Friedman They considered that the dominant role is played money. Monetarism

Economy in health care - the branch of science which studies a health care place in a national economy, develops methods rational use of resources for ensuring public health care.

Control questions: 1. Give definition of the concept "Economic Theory" 2. Give definition and essence of economy of health care 3. List the main economic schools and their ideas 4. List basic needs of the person. 5. Prerequisites of emergence of economy of health care as new scientific discipline 6. Health care economy methods. 7. Health care as difficult system 8. Social and economic models of health care

References: 1. Chesnokova I.A. Bases of economic theory. –Educational manual.-Karaganda p 2. Djakupova D.E. Bases of economic theory. –Educational manual.-Karaganda p