7/22/25, 3:32 PM
EC248 FINAL EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
GRADED A++ 2025/2026
Terms in this set (91)
Drug formularies: -determine which drugs will be covered by third-party
- help manufacturers payers
determine which
drugs are
efficacious.
-help salesmen determine
what to sell
-determine which drugs
will be covered by
third-party payers
-Answers b. and c. are
correct.
In North America it is -incomplete vertical integration
typical for physicians to
work in hospitals but
not be employed by
them. This is a form
of:
-vertical integration
- horizontal integration
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-incomplete horizontal
integration
-incomplete vertical
integration
The hospital sector is -not-for-profit organizations
dominated by:
-for profit organizations
-not-for-profit
organizations
-not-only-for profit
organizations
-charitable organizations
An internal market - is often limited by political interference
approach:
-aims to create
competition within
specific geographic
areas
- is only available within
a private system
which allows
competition
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- aims to keep
purchases and
providers from
splitting
- is often limited by
political interference
Research suggests -physicians often have little incentive to use them.
generic drugs have had
less market penetration,
and less success in
containing costs
because:
-physicians often have
little incentive to use
them.
-manufacturers will not
produce them.
-consumers do not wish
to use them.
-insurers will not pay for
them.
Although drug -answers a. and b. are correct.
regulations are aimed
at protecting
consumers, they may
reduce innovation
because the increased
3/54
, 7/22/25, 3:32 PM
testing:
- imposes higher costs.
-increases the time for
drugs to come to market.
-eliminates "orphan" drugs
from the market.
-answers a. and b. are
correct.
The following statement -doctors are in charge of the hospital and maximize
best describes models income
that treat hospitals as
doctors' workshops:
-doctors are in charge of
the hospital and
maximize income
-doctors are in charge of
the hospital and
maximize patient
outcomes
-doctors under-invest
in non-medical inputs
because they are
maximizing their
income
-there is no incomplete
vertical integration as
4/54
EC248 FINAL EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
GRADED A++ 2025/2026
Terms in this set (91)
Drug formularies: -determine which drugs will be covered by third-party
- help manufacturers payers
determine which
drugs are
efficacious.
-help salesmen determine
what to sell
-determine which drugs
will be covered by
third-party payers
-Answers b. and c. are
correct.
In North America it is -incomplete vertical integration
typical for physicians to
work in hospitals but
not be employed by
them. This is a form
of:
-vertical integration
- horizontal integration
1/54
,7/22/25, 3:32 PM
-incomplete horizontal
integration
-incomplete vertical
integration
The hospital sector is -not-for-profit organizations
dominated by:
-for profit organizations
-not-for-profit
organizations
-not-only-for profit
organizations
-charitable organizations
An internal market - is often limited by political interference
approach:
-aims to create
competition within
specific geographic
areas
- is only available within
a private system
which allows
competition
2/54
,7/22/25, 3:32 PM
- aims to keep
purchases and
providers from
splitting
- is often limited by
political interference
Research suggests -physicians often have little incentive to use them.
generic drugs have had
less market penetration,
and less success in
containing costs
because:
-physicians often have
little incentive to use
them.
-manufacturers will not
produce them.
-consumers do not wish
to use them.
-insurers will not pay for
them.
Although drug -answers a. and b. are correct.
regulations are aimed
at protecting
consumers, they may
reduce innovation
because the increased
3/54
, 7/22/25, 3:32 PM
testing:
- imposes higher costs.
-increases the time for
drugs to come to market.
-eliminates "orphan" drugs
from the market.
-answers a. and b. are
correct.
The following statement -doctors are in charge of the hospital and maximize
best describes models income
that treat hospitals as
doctors' workshops:
-doctors are in charge of
the hospital and
maximize income
-doctors are in charge of
the hospital and
maximize patient
outcomes
-doctors under-invest
in non-medical inputs
because they are
maximizing their
income
-there is no incomplete
vertical integration as
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