MHA 710 STUDY EXAMS GUIDE ALL QUESTIONS
AND ANSWERS SURE A+
✔✔The tax fully dedicated to provide support for Medicare Part A is:
a. the mandate tax paid by individuals who do not purchase health insurance.
b. levied on the Medicare Trust Fund.
c. a 2.9 percent payroll tax paid by all workers, regardless of their age.
d. the federal income tax.
e. a tax on the health insurance premiums paid for all group plans. - ✔✔a 2.9 percent
payroll tax paid by all workers, regardless of their age.
✔✔What was the main effect of the agreement on Trade-Related Aspects of Intellectual
Property Rights (TRIPS) on United States' domestic policy?
a. It allowed generic drugs to rely on the original safety and efficacy evidence provided
by the equivalent branded drug.
b. It significantly increased the ability of generic substitutes to compete with brand name
drugs.
c. It lowered the life of patents from 20 years from the date of grant to 17 years from the
date of application.
d. It extended the life of patents from 17 years from the date of grant to 20 years from
the date of application. - ✔✔It extended the life of patents from 17 years from the date
of grant to 20 years from the date of application.
, ✔✔Danzon and Furukawa (2003) argue that:
a. the provision of government-provided free care increases the availability of newly
introduced drugs to everyone covered by the government plan.
b. pharmaceutical price differences across countries are roughly in line with differences
in per capita gross domestic product, supporting the predictions of Ramsey pricing
practices.
c. generic competition in the United States has not done much to lower drug prices or
spending.
d. price controls in the United States would lower drug prices without affecting the
overall availability of branded drugs or lowering incentives for future drug development.
- ✔✔pharmaceutical price differences across countries are roughly in line with
differences in per capita gross domestic product, supporting the predictions of Ramsey
pricing practices.
✔✔Part B pays what percentage of the allowable fee set by Medicare?
a. 90 percent
b. 75 percent
c. 80 percent
d. 70 percent
e. 85 percent - ✔✔80 percent
✔✔What is the most important factor leading to rising health care costs in the United
States since 1980?
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 - ✔✔The increased use of expensive medical
technology
✔✔Rent-seeking behavior results in
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.
greater income and wealth in the private sector. - ✔✔lower economic activity by
diverting resource to less-productive uses.
✔✔Of the new drugs introduced in the United States between 1940 and 1990, what
percentage were discovered by U.S. firms?
a. 15 percent
b. 30 percent
c. 45 percent
d. 60 percent
e. 75 percent - ✔✔60 percent
AND ANSWERS SURE A+
✔✔The tax fully dedicated to provide support for Medicare Part A is:
a. the mandate tax paid by individuals who do not purchase health insurance.
b. levied on the Medicare Trust Fund.
c. a 2.9 percent payroll tax paid by all workers, regardless of their age.
d. the federal income tax.
e. a tax on the health insurance premiums paid for all group plans. - ✔✔a 2.9 percent
payroll tax paid by all workers, regardless of their age.
✔✔What was the main effect of the agreement on Trade-Related Aspects of Intellectual
Property Rights (TRIPS) on United States' domestic policy?
a. It allowed generic drugs to rely on the original safety and efficacy evidence provided
by the equivalent branded drug.
b. It significantly increased the ability of generic substitutes to compete with brand name
drugs.
c. It lowered the life of patents from 20 years from the date of grant to 17 years from the
date of application.
d. It extended the life of patents from 17 years from the date of grant to 20 years from
the date of application. - ✔✔It extended the life of patents from 17 years from the date
of grant to 20 years from the date of application.
, ✔✔Danzon and Furukawa (2003) argue that:
a. the provision of government-provided free care increases the availability of newly
introduced drugs to everyone covered by the government plan.
b. pharmaceutical price differences across countries are roughly in line with differences
in per capita gross domestic product, supporting the predictions of Ramsey pricing
practices.
c. generic competition in the United States has not done much to lower drug prices or
spending.
d. price controls in the United States would lower drug prices without affecting the
overall availability of branded drugs or lowering incentives for future drug development.
- ✔✔pharmaceutical price differences across countries are roughly in line with
differences in per capita gross domestic product, supporting the predictions of Ramsey
pricing practices.
✔✔Part B pays what percentage of the allowable fee set by Medicare?
a. 90 percent
b. 75 percent
c. 80 percent
d. 70 percent
e. 85 percent - ✔✔80 percent
✔✔What is the most important factor leading to rising health care costs in the United
States since 1980?
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 - ✔✔The increased use of expensive medical
technology
✔✔Rent-seeking behavior results in
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.
greater income and wealth in the private sector. - ✔✔lower economic activity by
diverting resource to less-productive uses.
✔✔Of the new drugs introduced in the United States between 1940 and 1990, what
percentage were discovered by U.S. firms?
a. 15 percent
b. 30 percent
c. 45 percent
d. 60 percent
e. 75 percent - ✔✔60 percent
