Health economics is a growing field and is an important aspect of public policy analysis, debate and dialogue. It is concerned with how best to use the limited resources to meet the unlimited needs and wants in the health sector. The purpose of this book is to introduce first the concepts and tools of economics necessary in understanding health economics. Thereafter, the book introduces the concepts and tools applied in health economics to enable students to perform economic and statistical analysis in health economics so as to address the unique characteristics of supply and demand of health care. The book also provides the learners with necessary information that will enable them to design effective policies and strategies for effective health care management in the health sector. It is expected that after successfully reading the book, the student should have acquired the basic knowledge and understanding of economic tools and concepts used in health care. This book is thus expected to contribute towards knowledge base in the understanding of Health Economics locally, regionally and internationally.