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Unformatted text preview: ECON 3301 001: HEALTH ECONOMICS, Spring 2011 Assignment 7, due 2/17 The impact of new drugs on U.S. longevity & medical expenditure, 1990 2003 Please submit a scantron form, with one letter filled in corresponding to the answer for each question and no more than two names, at the beginning of the next class. 1. Health care is expected to embody significant technical progress because a. Capital equipment, which embodies technical progress, is an important input b. Pharmaceutical production is highly R&D intensive c. Life expectancies have increased substantially since 1990 d. Medical expenditures have risen much faster than inflation since 1990 2. Pharmaceutical-embodied technical progress would imply that in equation (1) is a. Negative and significant b. Insignificantly different from zero c. Positive and significant d. None of the above, since pharmaceutical-embodied technical progress is unrelated to 3. The effect of prescription drug vintage in equation (2), compared to equation (1), is expected to be...
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- Spring '08