Prescribing Policies

1. Determine the following before deciding a prescription: (a) maximize effectiveness at the least

cost;

Problems of this type involve variable costs and variable effectiveness. For instance, the choice of an most favorable budget to make the most of the accomplishment of agency objectives is a type III problem. The reaction to type III problems is called variable-cost-variable-effectiveness examination.

(b) maximize effectiveness at a fixed cost of 10,000; When maximum acceptable budgetary expenditure aims at fixed costs, the motto is to maximize effectiveness within the limits of existing resources. For instance, given a fixed budget of 10,000 million for both of two programs, a health policy forecaster will recommend the option that results in answer to type...