Introduction to pharmacoeconomics: definition and history MCQs With Answer

Introduction to pharmacoeconomics: definition and history MCQs With Answer

This quiz collection is designed for M.Pharm students to reinforce foundational knowledge in pharmacoeconomics. It covers clear definitions, historical development, major milestones, and essential concepts used in economic evaluation of medicines and health technologies. Questions emphasize analytical frameworks such as cost-minimization, cost-effectiveness, cost-utility and cost-benefit analyses, the role of perspectives, components of cost, and decision-making tools like ICER and QALY. The set blends factual, conceptual and applied items to prepare students for exams, research, and practical roles in formulary management, health technology assessment and policy-making.

Q1. What is the primary focus of pharmacoeconomics?

• Studying adverse drug reactions and their epidemiology
• Analyzing the costs and outcomes of pharmaceutical products and services
• Developing new pharmaceutical compounds in the laboratory
• Monitoring drug supply chains and logistics

Correct Answer: Analyzing the costs and outcomes of pharmaceutical products and services

Q2. Which period marks the emergence of pharmacoeconomics as a distinct field?

• Early 19th century
• Mid 20th century (1930s–1950s)
• Late 20th century (1970s–1990s)
• Early 21st century (2000s)

Correct Answer: Late 20th century (1970s–1990s)

Q3. Which of the following best describes a cost-utility analysis (CUA)?

• Comparison of costs when outcomes are assumed equal
• Cost per natural clinical unit like mmHg reduction
• Valuing outcomes in monetary terms and comparing net benefits
• Comparing costs to outcomes measured in quality-adjusted life years (QALYs)

Correct Answer: Comparing costs to outcomes measured in quality-adjusted life years (QALYs)

Q4. Who is most responsible for defining the term “pharmacoeconomics”?

• It was defined by a single universally accepted founder
• The term evolved through contributions of multiple health economists and policy experts
• It was coined by the World Health Organization as a formal discipline
• It originated with pharmaceutical sales organizations in the 1950s

Correct Answer: The term evolved through contributions of multiple health economists and policy experts

Q5. Which of the following is NOT a common type of pharmacoeconomic analysis?

• Cost-minimization analysis (CMA)
• Cost-effectiveness analysis (CEA)
• Cost-utility analysis (CUA)
• Cost-pharmacokinetic analysis (CPA)

Correct Answer: Cost-pharmacokinetic analysis (CPA)

Q6. What does ICER (incremental cost-effectiveness ratio) represent?

• Ratio of total cost to total number of patients treated
• Extra cost per unit of additional health benefit when comparing two interventions
• Percentage reduction in cost from using a generic drug
• Average cost of treatment across a population

Correct Answer: Extra cost per unit of additional health benefit when comparing two interventions

Q7. Which perspective in pharmacoeconomic studies typically includes both direct medical and non-medical costs as well as productivity losses?

• Payer perspective
• Provider perspective
• Societal perspective
• Patient perspective

Correct Answer: Societal perspective

Q8. Which cost category includes lost workdays and reduced productivity?

• Direct medical costs
• Direct non-medical costs
• Indirect costs
• Intangible costs

Correct Answer: Indirect costs

Q9. Why is discounting applied in pharmacoeconomic evaluations?

• To increase future costs and benefits for simplicity
• To reflect the time preference for current costs and outcomes over future ones
• To convert all outcomes into monetary units
• To eliminate uncertainty in long-term models

Correct Answer: To reflect the time preference for current costs and outcomes over future ones

Q10. Which outcome measure is most commonly used in cost-utility analyses?

• Life-years gained without quality adjustment
• Number needed to treat (NNT)
• Quality-adjusted life years (QALYs)
• Reduction in symptom scores

Correct Answer: Quality-adjusted life years (QALYs)

Q11. Which modeling technique is especially useful for chronic conditions with recurring events and long time horizons?

• Decision tree model
• Markov model
• Cross-sectional survey
• Meta-analysis

Correct Answer: Markov model

Q12. Which organization or process commonly uses pharmacoeconomic evidence to inform reimbursement or formulary decisions?

• Hospital laundry services
• Health technology assessment (HTA) agencies
• Pharmaceutical marketing departments
• Medical device maintenance teams

Correct Answer: Health technology assessment (HTA) agencies

Q13. What is the main decision rule when using ICER to determine if a new intervention is acceptable?

• Compare ICER to a predefined willingness-to-pay (WTP) threshold
• Choose the intervention with the highest total cost
• Always prefer the intervention with the greatest clinical effect regardless of cost
• Use the intervention with the shortest implementation time

Correct Answer: Compare ICER to a predefined willingness-to-pay (WTP) threshold

Q14. Which of the following best distinguishes pharmacoeconomics from pharmacoepidemiology?

• Pharmacoeconomics studies drug safety; pharmacoepidemiology studies costs
• Pharmacoeconomics focuses on costs and outcomes; pharmacoepidemiology focuses on drug use patterns and effects at the population level
• They are identical disciplines with different names
• Pharmacoepidemiology is limited to animal studies while pharmacoeconomics is for humans

Correct Answer: Pharmacoeconomics focuses on costs and outcomes; pharmacoepidemiology focuses on drug use patterns and effects at the population level

Q15. What is the purpose of sensitivity analysis in pharmacoeconomic studies?

• To increase sample size of clinical trials
• To test the robustness of results to uncertainty in key parameters
• To eliminate the need for model validation
• To convert clinical outcomes into costs

Correct Answer: To test the robustness of results to uncertainty in key parameters

Q16. Which component is considered an intangible cost?

• Hospital bed charges
• Transportation to clinic
• Pain, suffering and reduced quality of life not directly priced
• Wages lost due to illness

Correct Answer: Pain, suffering and reduced quality of life not directly priced

Q17. In a cost-minimization analysis (CMA), which assumption must hold true?

• Costs differ but outcomes are equivalent between interventions
• Outcomes differ widely and costs are equal
• Both costs and outcomes are unknown
• The analysis values outcomes in monetary units

Correct Answer: Costs differ but outcomes are equivalent between interventions

Q18. Which term best describes the benefit forgone by choosing one healthcare intervention over an alternative?

• Direct cost
• Opportunity cost
• Marginal utility
• Sunk cost

Correct Answer: Opportunity cost

Q19. Which type of sensitivity analysis explores the combined uncertainty of multiple parameters using probability distributions?

• One-way deterministic sensitivity analysis
• Threshold analysis
• Probabilistic sensitivity analysis (PSA)
• Scenario analysis with fixed values

Correct Answer: Probabilistic sensitivity analysis (PSA)

Q20. Which practical application is a common use of pharmacoeconomic studies in healthcare?

• Designing chemical synthesis pathways for drugs
• Supporting formulary inclusion and reimbursement decisions
• Conducting routine sterile manufacturing checks
• Training pharmacy technicians in dispensing procedures

Correct Answer: Supporting formulary inclusion and reimbursement decisions

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