1) Draw a health production function with individuals receiving some health producing intervention as inputs and health benefits as outputs that shows declining returns in output. What does declining returns imply about the marginal health benefit per person served/treated along this production function? How does this relate to specialization of inputs? How about selection to treatment?

2) Now assume that you have two distinct means of producing health (programs A & B) with identical PFs as you drew above. Given a fixed amount of inputs (e.g. ability to treat/serve some number of individuals), draw the production possibilities frontier curve for these two programs. What is an opportunity cost and how does it relate to the PPF curve? Define the terms technical, allocative and economic efficiency and their relationship to the PF and PPF curves you drew above.

3) If you value the health benefits from both programs equally, what point (label as X) do you pick on the PPF curve and why? Suppose program A works best for children, and program B best for adults, and you value health benefits (outputs) provided to children more than adults, what point (roughly, label as Y) would you pick on the PP curve and why? Are either one of these points more or less economically efficient than the other (or not)? Explain why or why not.