Pharmaceuticals exam 2025 with correct
answers
What is the evidence behind the benefits of pharmaceuticals? - correct answer
g g g g g g g g g g g g
Pharmaceuticals associated with 40% of the two-year increase of life expectancy achieved in
g g g g g g g g g g g g g
52 countries (1986-2000)
g g
Doubling of pharmaceutical expenditures associated with ~ 1 year increase in life expectancy
g g g g g g g g g g g g
(depending on countries age distribution)
g g g g g
Pharmaceuticals are the ____ largest share of the NHE. - correct answer Third
g g g g g g g g g g g g
What was the historic trend for drug spending in the US? - correct answer Drugs used to be a
g g g g g g g g g g g g g g g g g g g
much smaller part of the NHE
g g g g g
Sharply rising prescription drug expenditure growth nationwide in the mid- to late 1990s
g g g g g g g g g g g g g
caused noticeable growth in prescription drugs as a share of total health spending.
g g g g g g g g g g g g
, What is the trend for rate of growth in pharmaceutical spending? - correct answer Prescription
g g g g g g g g g g g g g g g
drugs had the largest rate of growth for spending in the NHE, especially in the 80s and 90s.
g g g g g g g g g g g g g g g g g g
Spending increases have been abating more recently. g g g g g g
How much has Rx spending grown since the 90s? - correct answer 71% increase in Rx
g g g g g g g g g g g g g g g g
purchasing (1994-2005, only 9% population growth) g g g g g
Retail prescriptions per capita increased from 7.9 to 12.3
g g g g g g g g
What are the factors driving Rx spending growth? - correct answer Aging
g g g g g g g g g g g
35-44 2.9 scripts/year g g g
65-74 9.1 scripts/year g g
More insurance for drugs
g g g
New innovative drugs increase things we treat with drugs
g g g g g g g g
Ex. Hyperlipodemia (high cholesterol)
g g g
Price
Retail price* has increased an average of 8.3%—not good
g g g g g g g g
Avg. inflation rate was 2.5%
g g g g
Negative welfare effects if purely price g g g g g
Volume increase greater than price increase
g g g g g
Types of Drugs Used (extensive and intensive changes)
g g g g g g g
Patented to Generic (Spending decrease, intensive, positive welfare)
g g g g g g g
New Drug replaces old drug or new treatment (Spending Increase, Substitution effect,
g g g g g g g g g g g g
ambigious welfare) g
Competition, substitution g
New Drug in competitive class (could decrease, likely positive welfare)
g g g g g g g g g
Completely new drug very likely welfare enhancing g g g g g g
answers
What is the evidence behind the benefits of pharmaceuticals? - correct answer
g g g g g g g g g g g g
Pharmaceuticals associated with 40% of the two-year increase of life expectancy achieved in
g g g g g g g g g g g g g
52 countries (1986-2000)
g g
Doubling of pharmaceutical expenditures associated with ~ 1 year increase in life expectancy
g g g g g g g g g g g g
(depending on countries age distribution)
g g g g g
Pharmaceuticals are the ____ largest share of the NHE. - correct answer Third
g g g g g g g g g g g g
What was the historic trend for drug spending in the US? - correct answer Drugs used to be a
g g g g g g g g g g g g g g g g g g g
much smaller part of the NHE
g g g g g
Sharply rising prescription drug expenditure growth nationwide in the mid- to late 1990s
g g g g g g g g g g g g g
caused noticeable growth in prescription drugs as a share of total health spending.
g g g g g g g g g g g g
, What is the trend for rate of growth in pharmaceutical spending? - correct answer Prescription
g g g g g g g g g g g g g g g
drugs had the largest rate of growth for spending in the NHE, especially in the 80s and 90s.
g g g g g g g g g g g g g g g g g g
Spending increases have been abating more recently. g g g g g g
How much has Rx spending grown since the 90s? - correct answer 71% increase in Rx
g g g g g g g g g g g g g g g g
purchasing (1994-2005, only 9% population growth) g g g g g
Retail prescriptions per capita increased from 7.9 to 12.3
g g g g g g g g
What are the factors driving Rx spending growth? - correct answer Aging
g g g g g g g g g g g
35-44 2.9 scripts/year g g g
65-74 9.1 scripts/year g g
More insurance for drugs
g g g
New innovative drugs increase things we treat with drugs
g g g g g g g g
Ex. Hyperlipodemia (high cholesterol)
g g g
Price
Retail price* has increased an average of 8.3%—not good
g g g g g g g g
Avg. inflation rate was 2.5%
g g g g
Negative welfare effects if purely price g g g g g
Volume increase greater than price increase
g g g g g
Types of Drugs Used (extensive and intensive changes)
g g g g g g g
Patented to Generic (Spending decrease, intensive, positive welfare)
g g g g g g g
New Drug replaces old drug or new treatment (Spending Increase, Substitution effect,
g g g g g g g g g g g g
ambigious welfare) g
Competition, substitution g
New Drug in competitive class (could decrease, likely positive welfare)
g g g g g g g g g
Completely new drug very likely welfare enhancing g g g g g g
