HCMI 3240 Exam 2 | Questions and Answers

HCMI 3240 Exam 2 | Questions and Answers In Phase 1 of drug development, the proposed drug is given to 20 to 80 healthy volunteers: A) to examine the cost-effectiveness of the drug B) to explore the treatment effective ...

HCMI 3240 Exam 2 | Questions and Answers In Phase 1 of drug development, the proposed drug is given to 20 to 80 healthy volunteers: A) to examine the cost-effectiveness of the drug B) to explore the treatment effectiveness of the drug C) to investigate the safety of the drug D) with the hope of helping those who suffer from severe illness Person 1 has a discount rate of 10% and Person 2 has a discount rate of 6%, which person is more likely to seek preventative medical care? Person 2 because lower discount rate means that they would like more medical care in the future and people with a higher discount rate believe that they will not need as much care in the future; preventative care where you take action now in order to reduce how much will be needed in the future In which of the following specialties doe the physician make the lowest income? A) plastic surgery B) orthopedics C) dermatology D) pediatrics E) cardiology Per person hospital stay days went down because of the following, except: A) aging population B) those who receive inpatient care spend fewer days in hospitals C) more and more medical conditions can be treated in outpatient settings D) improved efficiency of Rx drugs True or False: deaths due to Type I error are called "statistical deaths" False that is type II error True or False: one reason behind the increased market share of generic drugs is the financial incentives provided by the insurers True True or False: people who are more concerned about future generations would prefer a lower discount rate in calculating the NPV of social projects True: if they care about the future there needs to be a lower discount rate which is a higher NPV True or False: the cumulative probability of success for the drugs that pass the animal tests stage successfully is typically about 50% False: on average, about 1/5 of drugs that start Phase I are approved by the FDA which is a 20 percent success rate True or False: physicians are generally unhappy with Medicare payment rates False: about 96% of physicians accept Medicare payment True or False: the DRG payment system aimed to standardize the way Medicare pays hospitals True True or False: more than 75% of physicians run their own medical practice and have no partners (solo practice) False Historically (before 1980s) drugs were generally produced from: A) chemical substances B) genetics C) proteins D) living organisms John values his own life at $7,000,000 per year. He currently. works at Hospital A for a salary of $89,000 per year and has a 3/1,000 chance of death from working in the hospital. Hospital B offers John a job that $105,000 per year and has 3/500 chance of dying from working in the hospital. Calculate the differential (extra) pay per-life due to increased death risk by hospital 16,000 John values his own life at $7,000,000 per year. He currently. works at Hospital A for a salary of $89,000 per year and has a 3/1,000 chance of death from working in the hospital. Hospital B offers John a job that $105,000 per year and has 3/500 chance of dying from working in the hospital. Using the willingness to pay approach, what is the extra payment per life lost paid by Hospital A? 16,000/3/1,000= 5,333,333.33 At the optimal quantity: A) marginal cost is the lowest B) total benefit is the highest C) total net benefit is the highest D) marginal net benefit is positive marginal cost equals marginal benefit marginal net benefit equals marginal benefit minus marginal cost (0) True or False: both Medicare and Medicaid have similar eligibility requirements False Medicaid for elderly and Medicare is for workers Medicaid is income based At the optimal level of pollution: A) pollution is the highest B) pollution is the lowest C) total benefit of pollution equals total cost of pollution D) marginal benefit of pollution equals zero E) marginal net benefit of pollution equals zero If the net present value of a project equals zero: A) one should invest in the project B) one should not invest in the project C) the return on the project equals to the return on the most attractive alternative D) the discount rate is too high E) the project term is too long True or False: drug development costs has increased over the years True How are hospitals reimbursed by Medicare according to diagnosis-related groups? A) hospitals are paid their costs for treating a Medicare patient with a particular diagnosis B) hospitals are paid a fixed price according to the Medicare patient's diagnosis C) hospitals are paid a fixed price that is the same for all their publicly and privately insured patients- on the basis of their diagnosis D) hospitals are paid their fixed costs, which are the same for all their publicly and privately insured patients, plus their variable costs for Medicare patients- on the basis of their diagnoses How are we trying to address the shortage of physicians in the United States? A) increase the supply of medical schools B) increase the responsibilities of "physician extenders" C) incentivize the profession of medicine by making the medical school admissions process more selective If the USA, regulates (controls) Rx drug prices, the following may be expected in the short run: A) consumers would be at a loss B) drug prices would increase C) consumers would benefit D) innovation would increase E) both consumers and producers would benefit If marginal benefit of the COVID-19 vaccine for the next individual is positive, A) she should receive the vaccine B) she should not receive the vaccine C) there is not enough information to answer this question D)she should wait six months to receive the vaccine E) her case should be re-evaluated in six months C: there is not enough information to answer this question because the marginal benefit is positive but we do not know if it is above or below marginal cost True or False: marketing to healthcare professionals (e.g., MDs) receives the highest amount of funds from the pharmaceuticals industry's marketing budget True Medicare Part A (hospital services) is financed by: A) a premium that is 75% subsidized by the government and 25% subsidized by the aged B) a premium that is 100% subsidized by the government C) a payroll tax on both the employee and the employer Medicare and Medicaid: A) were enacted in 1965 B) increased government financing on medical care C) decreased out of the pocket health expenditure D) All of the above It is difficult to reform the Medicare because: A) pharmaceutical manufacturers benefit from drug sales under Part D B) senior congressional leaders do not want their Medicare benefits changed C) the Medicare population is opposed to the reform and have high voting-participation rates