Quantitative aspects of the pharma market MCQs With Answer

Quantitative aspects of the pharma market MCQs With Answer help B.Pharm students build practical skills in interpreting and calculating market metrics essential for pharmaceutical decision-making. This intro focuses on market size estimation, growth rate and CAGR calculations, market share analysis, pricing, sales data interpretation, demand forecasting, market segmentation, pharmacoeconomics basics and competitive metrics. Emphasis is on hands‑on numeric techniques—percent changes, index numbers, break‑even analysis, contribution margin, and forecasting methods—plus reading charts and tables. Mastery of these quantitative tools supports roles in marketing, regulatory affairs and product management. Now let’s test your knowledge with 30 MCQs on this topic.

Q1. What does CAGR stand for in pharma market analysis?

• Compound Annual Growth Rate
• Current Annual Growth Ratio
• Constant Average Growth Rate
• Cumulative Annual Growth Rate

Correct Answer: Compound Annual Growth Rate

Q2. If a drug market was $50 million in 2018 and $100 million in 2021, the approximate CAGR over 3 years is:

• 26% per year
• 33% per year
• 20% per year
• 41% per year

Correct Answer: 26% per year

Q3. Market share is best defined as:

• Company revenue divided by total market revenue
• Total number of prescriptions written in a year
• Year‑on‑year growth of a company
• Average price of a product in the market

Correct Answer: Company revenue divided by total market revenue

Q4. If a product sells 2000 units at $25 each, total revenue equals:

• $25,000
• $50,000
• $2,000
• $20,000

Correct Answer: $50,000

Q5. Break‑even point (units) is calculated by dividing fixed costs by:

• Contribution margin per unit
• Total revenue
• Variable cost per unit
• Selling price per unit

Correct Answer: Contribution margin per unit

Q6. If selling price = $40, variable cost = $25, contribution margin per unit is:

• $15
• $65
• $25
• $40

Correct Answer: $15

Q7. Price elasticity of demand measures:

• Percentage change in quantity demanded divided by percentage change in price
• Change in market share with advertising
• Correlation between price and cost
• Profit margin per unit

Correct Answer: Percentage change in quantity demanded divided by percentage change in price

Q8. In forecasting, a moving average helps to:

• Smooth short‑term fluctuations to reveal trends
• Calculate break‑even faster
• Determine pharmacokinetics of a drug
• Measure market segmentation accuracy

Correct Answer: Smooth short‑term fluctuations to reveal trends

Q9. Which metric compares cost to health outcomes (e.g., cost per QALY)?

• Cost‑effectiveness analysis
• Market share analysis
• Price elasticity
• Break‑even analysis

Correct Answer: Cost‑effectiveness analysis

Q10. If total market revenue = $10 million and Company A revenue = $1.5 million, Company A’s market share is:

• 15%
• 6.66%
• 150%
• 0.15%

Correct Answer: 15%

Q11. A sales growth from $2M to $2.4M in one year is a percentage increase of:

• 20%
• 40%
• 12%
• 4%

Correct Answer: 20%

Q12. Sampling a prescription database to estimate nationwide demand is an example of:

• Inferential analysis
• Descriptive accounting
• Pharmacovigilance reporting
• Regulatory submission

Correct Answer: Inferential analysis

Q13. An index number (base year=100) rising to 120 indicates:

• A 20% increase from base year
• A 120% increase from base year
• A 0.2% increase
• A 20 point decrease

Correct Answer: A 20% increase from base year

Q14. If fixed costs = $30,000 and contribution per unit = $15, break‑even units =

• 2,000 units
• 450 units
• 500 units
• 30,015 units

Correct Answer: 2,000 units

Q15. Which forecasting method uses past values with seasonality and trends explicitly modeled?

• Time series decomposition
• Simple random sampling
• Cross‑sectional survey
• Cost‑minimization

Correct Answer: Time series decomposition

Q16. Net revenue growth adjusted for inflation is called:

• Real growth
• Nominal growth
• Gross growth
• Compound growth

Correct Answer: Real growth

Q17. If a company reduces price by 10% and demand increases by 20%, price elasticity magnitude is:

• 2.0
• 0.5
• 10
• −0.5

Correct Answer: 2.0

Q18. In segmentation, TAM stands for:

• Total Addressable Market
• Total Available Marketing
• Targeted Approval Measure
• Total Annual Margin

Correct Answer: Total Addressable Market

Q19. Which is a leading indicator used in short‑term pharma demand forecasting?

• Physician prescription intent surveys
• Last year’s closing stock balance
• Historical production cost
• Regulatory filing date only

Correct Answer: Physician prescription intent surveys

Q20. Contribution margin ratio is contribution per unit divided by:

• Selling price per unit
• Fixed cost
• Total variable cost
• Net profit

Correct Answer: Selling price per unit

Q21. Pharmacoeconomic evaluation that compares costs and outcomes in natural units (e.g., life years gained) is:

• Cost‑effectiveness analysis
• Cost‑utility analysis
• Cost‑minimization analysis
• Budget impact analysis

Correct Answer: Cost‑effectiveness analysis

Q22. If quarterly sales are 1200, 1500, 1300 and 1700 units, the simple 4‑quarter moving average for next quarter equals:

• 1425 units
• 1550 units
• 1300 units
• 1600 units

Correct Answer: 1425 units

Q23. Market penetration rate measures:

• Proportion of potential customers who use the product
• Number of competitors in market
• Ratio of fixed to variable costs
• Average treatment cost per patient

Correct Answer: Proportion of potential customers who use the product

Q24. A competitive intensity metric often used in pharma is:

• Number of active competitors and their market shares
• Company’s R&D headcount only
• Number of patents filed irrespective of scope
• Sales team size only

Correct Answer: Number of active competitors and their market shares

Q25. If a product’s unit cost is $10, selling price $25, and fixed costs $15,000, contribution margin ratio is:

• 60%
• 40%
• 150%
• 10%

Correct Answer: 60%

Q26. Which technique quantifies uncertainty by assigning probabilities to outcomes in forecasting?

• Scenario analysis / Monte Carlo simulation
• Simple averaging
• Descriptive statistics only
• Regulatory review

Correct Answer: Scenario analysis / Monte Carlo simulation

Q27. If prevalence of a disease is 2% in a population of 50,000, number of affected individuals is:

• 1,000
• 2,500
• 100
• 10,000

Correct Answer: 1,000

Q28. A price‑volume tradeoff analysis helps determine:

• How price changes affect sales volume and revenue
• Clinical efficacy compared to competitors
• Regulatory approval timelines
• Manufacturing batch size only

Correct Answer: How price changes affect sales volume and revenue

Q29. Which metric is most relevant when evaluating cost per patient treated across therapies?

• Average cost per treated patient
• Market capitalization
• Inventory turnover
• Headcount per region

Correct Answer: Average cost per treated patient

Q30. When converting nominal market growth (10%) to real growth with inflation at 3%, approximate real growth is:

• 6.8%
• 13%
• 3%
• 7%

Correct Answer: 6.8%

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