Week 7 Chapters 12 and 13 Health Economics
In the U.S., the patent pharmaceutical companies receive for each new drug they develop is ...
17 years
Which of the following is an example of Type I error?
An ineffective drug is approved to enter the US market.
It costs more in Boston for a hip replacement than in Boise. We can conclude that ...
Boston may be on a lower health production function and therefore must pay more to reach the same level of health as Boise.
A graphical representation of the relationship between expenditures and maximal level of obtainable health.
Health production function
The Food and Drug Administration (FDA) decides whether to approve a drug for use in the United States or not. It bases its decisions mostly on ...
If the drug is safe and effective.
Discoveries that result when innovators change their research agenda in response to profit opportunities.
Induced innovation
Which of the following is not correct concerning the Laspeyres price index of health care inflation?
It considers new innovations.
A measurement of how much more the same goods and services cost now compared to the last time period.
Laspeyres index
A measure of the price level for medical goods and services.
Medical care consumer price index (CPI)
A rise in the price level for medical goods and services.
Medical inflation
Which one of the following is not a reason for the rising total health expenditures in the U.S.?
Medical innovation.
Extra earnings due to the complete control a firm has over a market.
Monopoly profits
A rare disease that receives little or no research attention from major drug companies.
Orphan disease
Government-sanctioned monopoly in a limited market, usually for one specific idea, algorithm, or product.
Patent
A maximum price set by the government.
Price ceiling
Selling the same product to different consumers at different prices.
Price discrimination
Research and development that builds directly upon the research of others.
Subsequent innovation
Health services whose use depends greatly on the availability of that service.
Supply-sensitive care
Which one of the following statements is true concerning price controls on drugs?
They make existing drugs more affordable.
A false positive decision, i.e., a bad drug gets approved for sale.
Type I error
A false negative decision, i.e., a good drug gets rejected and does not go on the market.
Type II error
Drug trials on animals happen ...
before phase I.
The Dartmouth Atlas research project finds that health care spending in America in the early 2000s ...
was widely varied among different regions.
