MHA 710 Exam 3 LSUS Questions and
Verified Detailed Answers | Graded A+
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? -
✔✔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? - ✔✔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? - ✔✔Physicians
Part B pays what percentage of the allowable fee set by Medicare? - ✔✔80%
By the time a drug enters the clinical trial phase of testing on humans, - ✔✔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? - ✔✔?
Finkelstein and McKnight (2008) provide an empirical estimate of the benefits to
seniors of the 1965 introduction of Medicare. Which of the following statements
1|Page
©KERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
, is true concerning the results of this study? - ✔✔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? -
✔✔Emergency room services
Medicare and Medicaid were enacted by the Johnson administration in 1965 as
amendments to which federal law already in existence? - ✔✔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? -
✔✔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? - ✔✔$6.1 billion
Danzon and Furukawa (2003) argue that: - ✔✔pharmaceutical price differences
across countries are roughly in line with differences in per capita gross domestic
product, supporting the predictions of Ramsey pricing practices.
2|Page
©KERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
Verified Detailed Answers | Graded A+
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? -
✔✔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? - ✔✔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? - ✔✔Physicians
Part B pays what percentage of the allowable fee set by Medicare? - ✔✔80%
By the time a drug enters the clinical trial phase of testing on humans, - ✔✔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? - ✔✔?
Finkelstein and McKnight (2008) provide an empirical estimate of the benefits to
seniors of the 1965 introduction of Medicare. Which of the following statements
1|Page
©KERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
, is true concerning the results of this study? - ✔✔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? -
✔✔Emergency room services
Medicare and Medicaid were enacted by the Johnson administration in 1965 as
amendments to which federal law already in existence? - ✔✔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? -
✔✔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? - ✔✔$6.1 billion
Danzon and Furukawa (2003) argue that: - ✔✔pharmaceutical price differences
across countries are roughly in line with differences in per capita gross domestic
product, supporting the predictions of Ramsey pricing practices.
2|Page
©KERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
