ECONOMICS

Detailed explanation-1: -Cost-effectiveness analysis is a way to examine both the costs and health outcomes of one or more interventions. It compares an intervention to another intervention (or the status quo) by estimating how much it costs to gain a unit of a health outcome, like a life year gained or a death prevented.

Detailed explanation-2: -Cost effectiveness analysis ( CEA ) is one type of economic evaluation that compares the costs and effects of alternative health interventions. CEA focuses on assessing the intervention’s impact on clinical measures, unlike other types of economic evaluation that consider broader effects.

Detailed explanation-3: -Operational. The most common cost-effectiveness analysis methods are payback, net present value (NPV), return on investment (ROI), and . a. internal rate of return.

Detailed explanation-4: -For example, a bicycle that costs $200 and can be used for 1500 miles. If you include the cost of people’s time at $40 an hour and the assumption a bicycle can travel 13 miles an hour in traffic. Bicycles generally don’t cause much environmental damage so this cost is close to zero.