1 a) Explain the Grossman’s model, clearly giving its prediction (10 marks)
b) In case of a situation where there is only one provider of health care in the society, there is likelihood of welfare loss due to inefficiency of the provider. Explain the statement using a diagram. ( 8 marks)
c) With the aid of a diagrams, explain the effect of the following on the health insurance demand: decrease in premiums, increase in expected loss, and increase in individual wealth. (12 marks)
2 ) Given the poverty levels in the country and the unstable financial support from development partners for the provision of health services in the country, explain at least four sources of funding that may be sustained in the long runto finance provision of health care. Give advantages and disadvantages of each of the source of financing. (20 marks)
3 a) What is decentralization? Explain at least three different types of decentralizations. (8 marks)
b) Distinguish between adverse selection and moral hazard in health insurance. (4 marks)
c) Discuss, cost effectiveness analysis in evaluation of health care programmes. (8 marks)
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