Overview of Drug Price Control Order (DPCO) MCQs With Answer

Overview of Drug Price Control Order (DPCO) MCQs With Answer

This concise introduction explains the Drug Price Control Order (DPCO), its purpose, scope and regulatory impact for B.Pharm students. It highlights key keywords: DPCO, Drug Price Control, National Pharmaceutical Pricing Authority (NPPA), Essential Commodities Act, scheduled formulations, ceiling price, National List of Essential Medicines (NLEM), price regulation, market-based pricing and enforcement. The DPCO ensures affordable access by fixing price ceilings for essential medicines and monitoring compliance by manufacturers, traders and retailers. Understanding DPCO helps pharmacy graduates appreciate drug pricing policy, public health implications and compliance responsibilities in pharmacy practice. Now let’s test your knowledge with 30 MCQs on this topic.

Q1. What does DPCO stand for?

• Drug Price Control Order
• Drug Production and Control Ordinance
• Department of Pharmaceutical and Chemical Order
• Drug Policy and Compliance Office

Correct Answer: Drug Price Control Order

Q2. Which authority is primarily responsible for implementing the DPCO in India?

• Central Drugs Standard Control Organization (CDSCO)
• National Pharmaceutical Pricing Authority (NPPA)
• Ministry of Health and Family Welfare
• State Drug Control Department

Correct Answer: National Pharmaceutical Pricing Authority (NPPA)

Q3. Under which Act is the DPCO notified?

• Drugs and Cosmetics Act, 1940
• Essential Commodities Act, 1955
• Indian Medical Council Act
• Consumer Protection Act

Correct Answer: Essential Commodities Act, 1955

Q4. What is the primary objective of the DPCO?

• To control the quality of drugs
• To regulate prices of specified medicines and ensure affordability
• To license new drug manufacturers
• To control import of active pharmaceutical ingredients

Correct Answer: To regulate prices of specified medicines and ensure affordability

Q5. Which list is used to identify many scheduled formulations under DPCO?

• WHO Essential Medicines List
• National List of Essential Medicines (NLEM)
• Pharmacopoeia of India
• Schedule H of Drugs and Cosmetics Rules

Correct Answer: National List of Essential Medicines (NLEM)

Q6. Scheduled formulations under DPCO are subject to what regulatory mechanism?

• Mandatory clinical trials
• Price ceiling or ceiling price
• Compulsory licensing
• Import restrictions

Correct Answer: Price ceiling or ceiling price

Q7. Which of the following best describes a ceiling price under DPCO?

• The minimum retail price manufacturers must charge
• The maximum price at which a scheduled formulation can be sold
• A suggested price for hospital procurement only
• The fixed wholesale margin for all medicines

Correct Answer: The maximum price at which a scheduled formulation can be sold

Q8. Which stakeholders must comply with DPCO pricing for scheduled formulations?

• Only manufacturers
• Manufacturers, wholesalers, distributors and retailers
• Only retailers
• Only government hospitals

Correct Answer: Manufacturers, wholesalers, distributors and retailers

Q9. What is one major function of NPPA related to DPCO?

• Approving marketing authorizations for new drugs
• Fixing and revising ceiling prices for scheduled formulations
• Conducting clinical trials
• Issuing manufacturing licenses

Correct Answer: Fixing and revising ceiling prices for scheduled formulations

Q10. Which of the following is true about non-scheduled formulations?

• They are directly price-controlled under DPCO
• They are not subject to DPCO price control unless notified
• They cannot be marketed in India
• They have a mandatory government-set retail margin

Correct Answer: They are not subject to DPCO price control unless notified

Q11. How often can NPPA revise ceiling prices under DPCO mechanisms?

• Never; prices are permanent once fixed
• As per notifications and periodic reviews by NPPA
• Only every ten years
• Only when the manufacturer requests

Correct Answer: As per notifications and periodic reviews by NPPA

Q12. Which factor is commonly considered when selecting medicines for price control under DPCO?

• Availability of raw materials abroad only
• Public health importance and essentiality
• Exclusive patent protection status
• Manufacturer’s profit margin alone

Correct Answer: Public health importance and essentiality

Q13. If a company charges above the ceiling price for a scheduled drug, NPPA can:

• Ignore the violation
• Recover the overcharged amount from the company
• Legalize the higher price automatically
• Transfer the case to foreign regulators

Correct Answer: Recover the overcharged amount from the company

Q14. Which policy approach did DPCO 2013 emphasize for price fixation?

• Cost-plus pricing for all drugs
• Market-based pricing for scheduled formulations
• International reference pricing for all medicines
• Profit-percent-of-sales method only

Correct Answer: Market-based pricing for scheduled formulations

Q15. The National List of Essential Medicines (NLEM) influences DPCO because:

• NLEM lists medicines considered essential for public health and helps identify candidates for price control
• NLEM replaces DPCO entirely
• NLEM only lists herbal products
• NLEM sets manufacturing standards for all drugs

Correct Answer: NLEM lists medicines considered essential for public health and helps identify candidates for price control

Q16. Which of the following actions is part of NPPA’s monitoring under DPCO?

• Monitoring market prices and initiating actions for overcharging
• Issuing drug manufacturing licenses
• Conducting classroom training for pharmacists
• Registering clinical trial protocols

Correct Answer: Monitoring market prices and initiating actions for overcharging

Q17. Which group of medicines is most likely to be included in DPCO scheduled list?

• Luxury cosmetic products
• Essential therapeutic medicines with high public health impact
• Veterinary supplements only
• Homeopathic remedies exclusively

Correct Answer: Essential therapeutic medicines with high public health impact

Q18. Price control under DPCO aims to improve which healthcare aspect?

• Availability of luxury medicines only
• Affordability and access to essential medicines
• Pharmaceutical export volumes exclusively
• Hospital architecture standards

Correct Answer: Affordability and access to essential medicines

Q19. Which of the following is a likely consequence of de-scheduling a medicine (removing it from the scheduled list)?

• Its price will remain controlled by NPPA indefinitely
• It may become market-priced and not subject to DPCO ceilings
• It will become illegal to sell
• It immediately receives price subsidy from government

Correct Answer: It may become market-priced and not subject to DPCO ceilings

Q20. Which stakeholders are typically consulted during price fixation or revision under DPCO?

• Only NPPA internal staff with no external input
• Manufacturers, industry associations and sometimes public stakeholders
• Foreign governments only
• Retail customers exclusively through online polls

Correct Answer: Manufacturers, industry associations and sometimes public stakeholders

Q21. The term “scheduled formulation” in DPCO refers to:

• Any herbal product sold in markets
• Medicine formulations specifically listed under the DPCO schedule for price control
• Only injectable formulations
• Devices and surgical instruments

Correct Answer: Medicine formulations specifically listed under the DPCO schedule for price control

Q22. For pharmacy professionals, understanding DPCO is important because:

• It affects prescribing practices and patient counseling on drug costs
• It determines sterile compounding protocols
• It sets the pharmacopoeial monographs
• It governs laboratory accreditation only

Correct Answer: It affects prescribing practices and patient counseling on drug costs

Q23. Which document often forms the basis for adding medicines to the DPCO scheduled list?

• Annual GDP report
• National List of Essential Medicines (NLEM)
• State budget
• Pharmaceutical export log

Correct Answer: National List of Essential Medicines (NLEM)

Q24. Which of the following is NOT a function of NPPA?

• Fixing/revising ceiling prices for scheduled formulations
• Monitoring and enforcing price control compliance
• Issuing manufacturing licenses for new plants
• Recommending policy measures to the government

Correct Answer: Issuing manufacturing licenses for new plants

Q25. If a pharmacist notices a price above the notified ceiling, they should:

• Ignore it because retailers set their own prices
• Report to NPPA or the appropriate regulatory authority
• Immediately increase the price further
• Discard the medicine

Correct Answer: Report to NPPA or the appropriate regulatory authority

Q26. Which of the following accurately reflects DPCO’s impact on industry?

• It eliminates competition among manufacturers
• It constrains pricing strategies for scheduled formulations and encourages cost-efficiency
• It mandates equal profit for all companies
• It removes regulatory oversight from the market

Correct Answer: It constrains pricing strategies for scheduled formulations and encourages cost-efficiency

Q27. Price monitoring under DPCO includes which of the following activities?

• Tracking retail and wholesale prices of scheduled formulations
• Only auditing clinical trial sites
• Managing hospital procurement systems exclusively
• Setting physician salaries

Correct Answer: Tracking retail and wholesale prices of scheduled formulations

Q28. In the context of DPCO, “overcharging” means:

• Charging less than the production cost
• Charging a price higher than the notified ceiling price for a scheduled formulation
• Exporting medicines illegally
• Offering discounts to hospitals

Correct Answer: Charging a price higher than the notified ceiling price for a scheduled formulation

Q29. Which professional group will most benefit from mastering DPCO concepts during B.Pharm?

• Clinical pharmacists, community pharmacists and regulatory affairs professionals
• Only veterinary pharmacists
• Architects designing pharmacies
• Sports coaches

Correct Answer: Clinical pharmacists, community pharmacists and regulatory affairs professionals

Q30. What is an important ethical implication of DPCO for pharmacists?

• Ensuring medicines are dispensed at or below legal ceilings to protect patient access and affordability
• Maximizing profit by ignoring price rules
• Refusing to sell essential medicines
• Altering labels to increase price

Correct Answer: Ensuring medicines are dispensed at or below legal ceilings to protect patient access and affordability

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