MHA 710 Exam 3 LSUS Questions with Well Detailed Correct
Answers 100% Pass//2026 Newly Updated
Government regulators sometimes set the price of a drug at its marginal cost of production without
including a fair share of the global joint cost of research and development. Which of the following
statements is true about this practice? -Correct Answer This practice is a classic example of free
riding.
What was the main effect of the agreement on Trade-Related Aspects of Intellectual Property Rights
(TRIPS) on United States' domestic policy? -Correct Answer It extended the life of patents from 17
years from the date of grant to 20 years from the date of application.
The majority of pharmaceutical advertising is directed at which of the following groups? -Correct
Answer Physicians
Part B pays what percentage of the allowable fee set by Medicare? -Correct Answer 80%
By the time a drug enters the clinical trial phase of testing on humans, -Correct Answer an average
of five years of the overall patent life has already expired
Which of the following is a true statement about long-term care? -Correct Answer ?
Finkelstein and McKnight (2008) provide an empirical estimate of the benefits to seniors of the 1965
introduction of Medicare. Which of the following statements is true concerning the results of this
study? -Correct Answer The real impact of the introduction of Medicare was on the reduction in
out-of-pocket health care spending for households faced with catastrophic events (those in the top
25 percent of spenders).
Which of the following services is covered under Part B of Medicare? -Correct Answer Emergency
room services
Medicare and Medicaid were enacted by the Johnson administration in 1965 as amendments to
which federal law already in existence? -Correct Answer Social Security Act
, Medical care spending escalates as an individual reaches old age. Which of the following statements
is true regarding medical care spending and the elderly? -Correct Answer Chronic illnesses increase
as we age as do the multiplicity of services available to treat those illnesses.
How much did pharmaceutical companies spend on direct-to-consumer advertising in 2019? -
Correct Answer $6.1 billion
Danzon and Furukawa (2003) argue that: -Correct Answer pharmaceutical price differences across
countries are roughly in line with differences in per capita gross domestic product, supporting the
predictions of Ramsey pricing practices.
How do individuals enroll in Part A of Medicare? -Correct Answer Individuals are automatically
enrolled on their 65th birthday as long as they or their spouse has paid into the Social Security
system for 10 years
The tax fully dedicated to provide support for Medicare Part A is -Correct Answer a 2.9 percent
payroll tax paid by all workers, regardless of their age.
Price controls are a common feature in the pharmaceutical industry in most developed countries.
Which one of the following statements about price controls is true? -Correct Answer Countries with
the most stringent price controls do the least research.
The only disease-specific group eligible for Medicare are those suffering from: -Correct Answer
end-stage renal disease.
The Medicare pay-as-you-go system is jeopardized by -Correct Answer The changing demographics
of the United States' population, with an increasing percentage over the age of 65.
Which benefits are provided through Part A of Medicare? -Correct Answer Medical hospital
insurance
On average, biopharmaceutical companies spend approximately what percentage of their sales
revenue on research and development? -Correct Answer 15-20%
A type I error is: -Correct Answer when a harmful drug is allowed into the market.
Answers 100% Pass//2026 Newly Updated
Government regulators sometimes set the price of a drug at its marginal cost of production without
including a fair share of the global joint cost of research and development. Which of the following
statements is true about this practice? -Correct Answer This practice is a classic example of free
riding.
What was the main effect of the agreement on Trade-Related Aspects of Intellectual Property Rights
(TRIPS) on United States' domestic policy? -Correct Answer It extended the life of patents from 17
years from the date of grant to 20 years from the date of application.
The majority of pharmaceutical advertising is directed at which of the following groups? -Correct
Answer Physicians
Part B pays what percentage of the allowable fee set by Medicare? -Correct Answer 80%
By the time a drug enters the clinical trial phase of testing on humans, -Correct Answer an average
of five years of the overall patent life has already expired
Which of the following is a true statement about long-term care? -Correct Answer ?
Finkelstein and McKnight (2008) provide an empirical estimate of the benefits to seniors of the 1965
introduction of Medicare. Which of the following statements is true concerning the results of this
study? -Correct Answer The real impact of the introduction of Medicare was on the reduction in
out-of-pocket health care spending for households faced with catastrophic events (those in the top
25 percent of spenders).
Which of the following services is covered under Part B of Medicare? -Correct Answer Emergency
room services
Medicare and Medicaid were enacted by the Johnson administration in 1965 as amendments to
which federal law already in existence? -Correct Answer Social Security Act
, Medical care spending escalates as an individual reaches old age. Which of the following statements
is true regarding medical care spending and the elderly? -Correct Answer Chronic illnesses increase
as we age as do the multiplicity of services available to treat those illnesses.
How much did pharmaceutical companies spend on direct-to-consumer advertising in 2019? -
Correct Answer $6.1 billion
Danzon and Furukawa (2003) argue that: -Correct Answer pharmaceutical price differences across
countries are roughly in line with differences in per capita gross domestic product, supporting the
predictions of Ramsey pricing practices.
How do individuals enroll in Part A of Medicare? -Correct Answer Individuals are automatically
enrolled on their 65th birthday as long as they or their spouse has paid into the Social Security
system for 10 years
The tax fully dedicated to provide support for Medicare Part A is -Correct Answer a 2.9 percent
payroll tax paid by all workers, regardless of their age.
Price controls are a common feature in the pharmaceutical industry in most developed countries.
Which one of the following statements about price controls is true? -Correct Answer Countries with
the most stringent price controls do the least research.
The only disease-specific group eligible for Medicare are those suffering from: -Correct Answer
end-stage renal disease.
The Medicare pay-as-you-go system is jeopardized by -Correct Answer The changing demographics
of the United States' population, with an increasing percentage over the age of 65.
Which benefits are provided through Part A of Medicare? -Correct Answer Medical hospital
insurance
On average, biopharmaceutical companies spend approximately what percentage of their sales
revenue on research and development? -Correct Answer 15-20%
A type I error is: -Correct Answer when a harmful drug is allowed into the market.
