Ch.11 The Market for Pharmaceuticals Verified Test Bank - Health Economics 7e Complete Test Bank by James W. Henderson. DOCX document preview.
Chapter 11: The Market for Pharmaceuticals
Multiple Choice
1. What is the most important factor leading to rising health care costs in the United States since 1980?
- The increased use of expensive medical technology.
- The aging U.S. population.
- The increased cost of malpractice insurance for providers.
- Rising incomes for physicians.
- The rising cost of pharmaceutical drugs.
2. Rent-seeking behavior results in
- increased economic activity by promoting efficiency.
- lower economic activity by diverting resource to less-productive uses.
- a more equitable distribution of income and wealth.
- lower prices throughout the economy.
- greater income and wealth in the private sector.
3. Of the new drugs introduced in the United States between 1940 and 1990, what percentage were discovered by U.S. firms?
- 15.
- 30.
- 45.
- 60.
- 75.
4. Pharmaceutical companies receive patents as an exclusive right to produce a drug. This results in
- normal profits on the patented drug.
- monopoly status in the production of the drug.
- lower prices for patients requiring the drug.
- orphan drug status.
- fewer new chemical compounds discovered.
5. The regulatory agency with oversight responsibility for the pharmaceutical industry is the
- IRS.
- FDA.
- SEC.
- ITC.
- ATT.
6. One of the primary reasons that costly technology is being introduced into the health care system is
- research scientists have successfully mapped the human genome.
- high cost is synonymous with better outcomes.
- third-party insurance finances most of the cost of care.
- all of the above.
7. The fastest-growing segment of pharmaceutical marketing is:
- marketing to physicians
- marketing to nurse practitioners
- marketing to the consumer
- none of these