2A-MT HW IN HETAR Chapter 2 Main Features of the Health Care Service and Its Relation with Economic Development Introduction to Health Economics by Gashaw Andargie Health economics is said to be the application of economic theories, tools and concepts of economics as a discipline to the topics of health and health care. It includes the allocation of resources to improve health as well as the health care system. In addition, it examines how consumers will be able to maximize the sources we have, knowing they are limited. In the second part of the chapter, it explained what is health and what are the factors including health care that may influence this state of health. Health refers to a state either of an individual or a community. Moreover, poverty, level of education, food intake, clean water and sanitary conditions affect a person's health. Wider primary health care concepts suggest that broader interventions, including community empowerment and anti-poverty measures are necessary to promote health. The book stated 3 different perspectives on the importance of health and the possible roles of the state promoting it. The three perspectives are as follows. First, health as a right. Health is seen as one of the most fundamental factor which affect the economy and the government is seen as having a responsibility to provide the people a clean and green surrounding. The government must allocate the money equally to the different sectors of the country. Second, health as consumption good. The government here has no special responsibilities in the promotion of health but leaves the decision as to its comparative importance to individual consumers. The government must make sure that they are providing quality and adequate health care materials. Third, health as an investment. Health affects the workforce of a country, illness may affect the overall production, either through absenteeism or by lowering productivity through its incapacitating effects. To sum it all up, being healthy is not only concerned with the physical and mental status of the individual but social and economic relationships must also be put into consideration. We must always keep in our minds that it is the people that run the economy and whatever we do affects our economy. If we are healthy in all the said aspects then there will be a mutual relationship between the people and the economy. If the people are healthy, then there will be more man power, which said to be the most important factor, so more man power means that there will be more jobs for the people which in the long run will have a positive effect in our economy.