Test One is worth 15 points. Each of the three parts below is worth 5 points. You need to answer all 3 parts. All answers must be in one Word file. Handwritten work scanned into a Word document is not acceptable. Please be sure to provide citations for your sources. You do not need to look at sources outside of your text and any provided in Blackboard. You do need to use the information in your text in your answers. If you have not read the Rubric for Grading and Directions for Submitting Tests please do so. They are just above this test.
If you have technical difficulties uploading your file to this test, please contact the Open SUNY Helpdesk. I will accept work up to 48 hours late. If on the test due date, you are working later than the Helpdesk is open and have a problem, do not panic. Just contact the Open SUNY Helpdesk the next day for assistance in uploading your file. I will accept Test One up to 48 hours late. If you use up the 48 hour grace period in writing the exam and then cannot get it to load or have some other issue, I am sorry but you will have a 0 on test one. It is up to you to submit the correct file in the correct format for this exam. Your file has to be a .doc or . docx file. You can go in and view what you submitted to be sure it went through and you submitted the file you wanted to.
Please remember that the penalty for any violation of the SUNY Canton Academic Integrity Policy will result in an F for you in the course. If you need to review the Academic Integrity Policy, it is available on the college’s website. I strongly encourage you to do so. Ignorance will not be a defense if you violate the policy. By submitting your answers to this test you are acknowledging that you were made aware of the Academic Integrity Policy, advised to review it, and understand the penalty for a violation in this course. In addition, please remember the course policy (located on the syllabus) concerning the use of quotes. A series of quotes does not make for a well-written answer. Quotes should only be used if the exact phrasing of the author is required in your answer. For answers on this exam, the exact wording of an author is not needed. The misuse or overuse of quotes will significantly reduce your grade.
Once you have written your answers to this exam and have them saved all in one Word .doc or . docx file, to upload the test you will need to come back to this area and click on the T1 that is above. Please do not wait until the last minute to work on and submit the test.
Part One (5 points)
Market for COVID 19 Vaccines
Price Quantity Demanded Quantity Supplied
0 300,000 0
$25.00 275,000 50,000
$50.00 250,000 100,000
$75.00 200,000 200,000
$100.00 100,000 300,000
$200.00 30,000 400,000
1. What is the market equilibrium price and quantity for COVID 19 vaccines?
2. At the price of 0, how many COVID 19 vaccines are consumers willing to take?
3. Does a shortage exist at a price of 0? If so, how much is the shortage?
4. Does a surplus exist at a price of $200.00? Is so, how much is the surplus?
5. If the government does not want there to be a shortage or surplus, what price should the government allow suppliers to charge for a COVID 19 vaccine?
6. What externalities exist in the market for COVID 19 vaccines? Use these externalities to explain why the government would sponsor (set the price at 0) for COVID 19 vaccines.
7. If a new vaccine is approved, what will happen to the equilibrium price and quantity of vaccines?
Part Two (5 points)
There are four major methods of economic evaluation used in health care decision-making. The four methods are the cost of illness studies, cost-benefit analysis, cost-utility analysis, and cost-effectiveness analysis. Please note that your textbook treats cost-utility analysis as a special form of cost-effectiveness analysis. You have been assigned to evaluate a new diabetes medication. Write an essay in which you address the following four questions. The average length of the essay to answer this question should be at least one typed single-spaced page or two double-spaced pages.
Which of the four types of economic evaluation would you use to perform your evaluation?
What advantages does the type of evaluation you selected have over the other three for this study?
What are some of the disadvantages or limitations of the evaluation you selected?
What information would you need to gather to perform your evaluation? (Please remember you are doing an economic evaluation not a medical/clinical trial for a treatment.)
Part 3 (5 points)
Write an essay in which you address the following. The average length of the essay to answer this question should be at least one typed single-spaced page or two double-spaced pages.
Demand studies in health care have provided estimates of both income and price elasticity. Estimates of income elasticity are usually above +1.0. Estimates of price elasticity typically range between -0.1 and -.75 (with hospital services at the lower end and elective services at the upper end). Write an essay in which you discuss what information these estimates convey and what the significances of these estimates are to government policymakers, insurance companies, and medical providers?
