Health Economics (ECON 452) | 15 Sample Exam Questions on Medicare, Pharma Policy, Technology & Cost Drivers – 2025/2026

This document contains 15 multiple-choice sample questions with verified answers from Week 6 of the Health Economics course (ECON 452), academic year 2025/2026. It explores some of the most pressing structural and financial issues in healthcare, including Medicare policy, pharmaceutical regulation, rising healthcare costs, and the economics of new medical technologies. Key topics include the limitations of Medicare Parts A and B, insurance coverage gaps for long hospital stays, and participation requirements. It also highlights the role of the FDA, the impact of patents granting monopoly power to drug manufacturers, and the consequences of third-party payment systems in driving technology adoption. Students will gain insights into cost growth factors since 1980, rent-seeking behavior in the healthcare industry, and the evolving strategies in pharmaceutical marketing. This document is especially relevant for students preparing for exams or seeking conceptual clarity in: Health Economics Public Health Policy Health Systems Management Pharmaceutical and Medical Technology Economics It applies to learners in: Undergraduate and graduate Economics programs Public Health degrees Pre-Medical or Medical programs with a health policy or systems focus Healthcare Management or Administration studies Keywords: Medicare Part A and B, healthcare costs, medical technology, rent-seeking, pharmaceutical regulation, FDA, patents, drug monopolies, insurance coverage gaps, third-party payment, catastrophic coverage, Medicare weaknesses, physician billing, direct-to-consumer pharma marketing