Instructions to students:
All questions are compulsory.
Each question is 5 marks .
TASK: EC2011 Health Economics Assignment
In the paper “What price data tell us about drug markets (1998), the authors conclude that the illegal drug market is characterized by:
- Very similar prices across regions and times
- Prices are quite similar across cities but the differ between city and suburban areas
- The evolution of drug prices over time is quite flat
- None of the above
Refer to the figure below. An isoquant that illustrates substitution possibilities between nurses and physicians is represented by panel
- B and C
Question 3: EC2011 Health Economics Assignment-City, University of London
According to the paper by Miron and Zwiebel (1991) on alcohol consumption during the prohibition:
- Estimating alcohol consumption during the Prohibition is complicated by the possibility that prohibition was accompanied by changes in attitudes or actions that affected underlying relationships between consumption, arrests for drunkenness, deaths for cirrhosis, etc.
- An increase in the number of arrestees for drunkenness during that period could be the result of a higher level of alcohol consumption or a more vigorous enforcement of drunkenness laws
- The alcohol consumption declined sharply at the onset of prohibition, and then it rebounded to 60-70 percent of its initial value and did not increase substantially immediately following the end of the Prohibition period
- All of the above
Pharmaceutical firms charge different prices in different countries because:
- Government policies differ among countries.
- Supply elasticities differ among countries.
- Demand elasticities differ among countries.
- Answers (a) and (b) are correct.