Question 1

Pharmaceutical companies receive patents as an exclusive right to produce a drug.This results in

Accepted Answer

A)  normal profits on the patented drug.
B)  monopoly status in the production of the drug.
C)  lower prices for patients requiring the drug.
D)  orphan drug status.
E)  fewer new chemical compounds discovered. B

Question 2

Of the new drugs introduced in the United States between 1940 and 1990, what percentage were discovered by U.S.firms?

Accepted Answer

A)  15.
B)  30.
C)  45.
D)  60.
E)  75. D

Question 3

One of the primary reasons that costly technology is being introduced into the health care system is

Accepted Answer

A)  research scientists have successfully mapped the human genome.
B)  high cost is synonymous with better outcomes.
C)  third-party insurance finances most of the cost of care.
D)  all of the above. C

Question 4

The regulatory agency with oversight responsibility for the pharmaceutical industry is the

Accepted Answer

A)  IRS.
B)  FDA.
C)  SEC.
D)  ITC.
E)  ATT.

Question 5

The best description of the technological imperative is as follows:

Accepted Answer

A)  If the procedure is available, use it.
B)  If the procedure is available, use it if it works.
C)  If the procedure is available, use it no matter how much it costs.
D)  If the procedure is available and used, use it even if the patient can not afford it.

Question 6

Rent-seeking behavior results in

Accepted Answer

A)  increased economic activity by promoting efficiency.
B)  lower economic activity by diverting resource to less-productive uses.
C)  a more equitable distribution of income and wealth.
D)  lower prices throughout the economy.
E)  greater income and wealth in the private sector.

Question 7

What is the most important factor leading to rising health care costs in the United States since 1980?

Accepted Answer

A)  The increased use of expensive medical technology.
B)  The aging U.S.population.
C)  The increased cost of malpractice insurance for providers.
D)  Rising incomes for physicians.
E)  The rising cost of pharmaceutical drugs.

Exam 10: The Market for Pharmaceuticals