Question

16. A major way in which the U.S. government interacts with the pharmaceuticals industry to assure a safe and adequate supply of drugs is through

a. Financing services provided by private sector firms

b. Marketing services for private producers

c. Producing services for consumers

d. Regulating the market for some services

17. Public good exhibit all of the following characteristics except

a. It is difficult or impossible to exclude non-paying consumers

b. They are not subject to crowding during peak use times

c. The marginal cost for the next user is often near zero

d. They cannot be exhausted (i.e, they are non-rivalrous)

18. Government involvement in health care ( and other aspects of economic activity) suffers from all of the following problems or limitations except

a. It picks winner and losers just like the market and is indifferent to the fate of "losers"

b. It must treat everyone the same and "one size fits all" may not work well in medical care.

c. Its ties to law and precedent make it inflexible and out of date at times

d. It may be more responsible to lobbyists than to the general public it is supposed to serve

Answer 1

16. (d) by regulating the market of some services.

17. (b) They are not subject to crowding during peak use time. This is a false statement because public goods, being freely available, are over-consumed by the people.

18. (a) It picks a winner and loser and is indifferent to the fate of the losers. This is not true because the government often comes up with schemes/policies so as to provide equal opportunities and healthcare benefits to the poor at lower costs.