Starting from reduced definition of health in terms of absence of disease and invalidity, the paper explains the applicability of three cardinal principles of economics (scarcity of resources and imperative of choice, opportunity costs, marginal analysis) on extremely sensitive area of economic evaluation of health care. An attempt was made to recognize the strengths and identify objective limitations of most used methods of economic evaluation of health care. The paper concentrates on recognizing the main problems at the same time by abstracting many details.
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