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13 Cards in this Set
- Front
- Back
What is a "market failure"?
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when the free market does not act efficiently to promote happiness-maximizing behavior
1. Public goods 2. Externalities 3. Natural Monopolies 4. Information Asymmetry |
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Define: Public goods
What are two examples in pharmacy? |
Public goods are the necessary and beneficial commodities that private entities will not supply because there is no incentive for a private entity to provide them
Ex: orphan drugs, vaccines - because the open market will not make these drugs available, gov't must step in to ensure their availability for those who need them |
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Define: Externalities
What is an example in pharmacy? |
An externality is when the production or consumption of a good affects someone who does not fully consent to the effect and when the costs of a good are not fully incorporated into the price a consumer pays for the good
Ex: overuse of antibiotics - a person who misuses antibiotics does not consider increased resistance |
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Define: Natural monopoly
What is an example in pharmacy? |
when the fixed costs are high relative to the variable costs
Ex: cost of demonstrating safety and efficacy of a new drug |
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Define: Information Asymmetry
What is an example in pharmacy? |
when the consumer is uninformed about the true value of a good
Ex: benefits and detriments of drugs are often difficult for untrained individuals to understand - gov't requires input of trained professionals for decisions about drug use |
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Rank the four types of statutes in hierarchical order.
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Federal Statutes
State constitutions State legislation Ordinances |
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What is the function of administrative agencies?
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implement desired changes in policies or
administer a body of administrative law when the legislature itself cannot perform these functions e.g. it is impossible for the state legislatures to monitor the activities of pharmacists on a regular basis so the responsibility is relegated to state boards of pharmacy |
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CMS
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Center for Medicare & Medicaid Services
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DHHS
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Department of Health and Human Services
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What is the CFR?
How often is it revised? |
Code of Federal Regulations
updated annually |
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Define: Common Law
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Law made by the courts
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What is "stare decisis"?
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"to abide by decided cases"
- a court's establishment of a certain rule of law based on a particular set of facts becomes a precedent that all lower courts in that jurisdiction must follow |
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What act provides for the comprehensive regulation of all drugs in interstate commerce?
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FDCA - Federal Food, Drug, & Cosmetics Act
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