Which statement best describes cost effectiveness analysis?

• A. Assessed as health outcome per cost expended
• B. Dollars of benefits per dollar expended
• C. Cost per quality-adjusted life year
• D. Net present value of interventions

Answer: (A)

Cost effectiveness analysis focuses on the relationship between costs and health outcomes to determine value. It asks how much health benefit is obtained for the money spent, typically expressed as cost per unit of health outcome (for example, cost per QALY gained). Describing it as health outcome per cost expended captures that core idea: evaluate health gains relative to resources used. This differs from approaches that monetize all benefits (cost-benefit analysis) or from metrics that focus on a single dollar-for-dollar ratio, and it generalizes beyond any one specific metric like cost per QALY.