Economy1. Explain why it is important to take a social view when conducting an economic evaluation? It is important to take a broader view when conducting an economic evaluation. In simplistic terms, when conducting an economic evaluation, there is a systematic attempt to identify, measure and compare the costs and benefits of interventions so that they can be understood on a broader scale and benefit many people. From a social point of view, all costs and benefits should be included in the evaluation or analysis. Costs, for example, should include direct and indirect costs. All resources that contribute to the outcome should be included. For example, if a patient receives services on an outpatient or inpatient basis, those services can be converted into costs by multiplying the unit cost of each service. It is difficult to estimate the cost of services. However, once the total cost of services is understood, it is possible to evaluate these services per person receiving them, per unit of service, from a business economic perspective and also from a broader social vision. If the service is valued and helps a population of people, then it provides value to a society. Society, as a whole, benefits. While it is difficult to quantify the components of the service, if the company believes the service has merit, stakeholders, shareholders, and community groups will support the service. In turn, the economic analysis of the service should show a greater benefit on a larger scale that would help society.2. Looking at effectiveness measures such as QALYs and DALYs, how cultural factors can influence the ability to compare cost-effectiveness data internationally...... middle of paper...... consumer goods , increase unrest or government instability? , etc. These are all red flags that should be observed and reviewed when considering an economic analysis. The analysis may be affected by a program being reviewed and results may change depending on the economic influence of the direct factors involved. Furthermore, there are also opportunity costs that must be taken into account in an economic analysis decision. When evaluating economic evaluation results, incremental effective cost ratios (ICERs) can show whether an economic planner should move forward with a program. ICER can demonstrate the cost-effectiveness of pursuing a program or the need to explore other options. Finding out the likely distribution of ICER, relative to a threshold level, will help prioritize whether or not to proceed with a program.