ECON 301- MIDTERM EXAM QUESTIONS AND ANSWERS 2025/2026 UPDATE WITH COMPLETE SOLUTIONS (GRADED A+) DETAILED ANSWERS!!

ECON 301- MIDTERM EXAM QUESTIONS AND ANSWERS 2025/2026 UPDATE WITH COMPLETE SOLUTIONS (GRADED A+) DETAILED ANSWERS!! What are the tradeoffs and opportunity costs when we try to improve drug safety - Lives are saved because unsafe drugs are kept off the market, but regulatory delays of safe drugs cost people their lives. Opportunity cost is the FDA reviewing drugs saves lives by preventing unsafe drugs entering the market, the cost is billions of dollars, added delays, and sometimes death. Identify the Type 1 and Type 2 error on drug approval. Apply the idea of Type 1 and Type 2 error to other issues, such as airline safety, or criminal justice. Which error does the government prefer to commit - Type I error is a drug being introduced and is not effective. Type II is when a patient suffers and may die due to the regulatory delay of an effective drug. Type II is a bigger deal because terminally ill patients want anything that can help them and do not care about delays.