TAILIEUCHUNG - Lecture Issues in economics today - Chapter 23: The economics of prescription drugs

In this chapter you will learn: Apply the concepts of monopoly as well as consumer and producer surplus to the economics of prescription drugs; summarize why most health economists view prescription drugs as relatively inexpensive, even while most noneconomists view them as very expensiv; explain why it is that most health economists do not favor price controls on prescription drugs; identify the consequences of an approval process that is too stringent or too lax. | Chapter 23 The Economics of Prescription Drugs Chapter Outline PROFITEERS OR BENEVOLENT SCIENTISTS MONOPOLY POWER AS IT APPLIES TO DRUGS IMPORTANT QUESTIONS Profiteers or Benevolent Scientists? Spending on drugs accounts for 9% of the more than $1 trillion health care industry The question of advertising Ads for particular drugs These are not unexpected as new cures and remedies are invented. Feel-good political ads These ads are seen as a means to forestall price controls or regulations. Patents A patent is a right granted by government to an inventor to be the exclusive seller on an invention for a limited period of time. Patents motivate innovation with the promise of monopoly profit for a period of time. Orphan Drugs An Orphan Drug is one that treats someone with a disease that afflicts few people. The concern is that there is insufficient potential demand to motivate innovation. For orphan drugs the patent life is extended by several years. The Concern over High Prices Are .

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• Issues in economics today
• Lecture Issues in economics today
• Macroeconomic issues
• International issues
• Price control issues
• Prescription drugs
• Economics of crime
• Economics of children
• Opportunity cost
• Demand model
• Elasticity of demand
• Firm production
• Perfect competition
• Gross domestic product
• Federal spending
• Fiscal policy
• Monetary policy
• Flaws in the CPI
• International trade
• International monetary fund
• Trade agreements
• Economic model
• Environmental problems
• Economic models of health care
• Medicaid costs
• Public insurance
• Human capital
• Measuring poverty
• Social security
• Head start