MI 2023 PU3 H2 Econs EOY P1 Question Paper

Class Adm No Candidate Name: This question paper consists of 7 printed pages and 1 blank page. [Turn over 2023 Preliminary Exams Pre-university 3 ECONOMICS 9757/01 Paper 1 29 August 2023 2 hours 15 minutes Additional Materials: Answer Booklet READ THESE INSTRUCTIONS FIRST Write your name and class on all the work you hand in. Write in dark blue or black pen on both sides of the paper. You may use a soft pencil for any diagrams, graphs or rough working. Do not use staples, highlighters, glue or correction fluid. Answer all questions. You are reminded of the need for clear presentation in your answers. An answer booklet will be provided with this question paper. You should follow the instructions on the front cover of the answer booklet. If you ne ed additional paper, ask the invigilator for a continuation booklet. The number of marks is given in brackets [ ] at the end of each question or part question. Answer all questions.

2 MI/9757/01/PU3/EOY2023 Question 1: The Pharmaceutical Industry Figure 1: Cumulative percent change in Consumer Pri ce Index for All US Urban Consumers for medical care and for all goods and services, January 2000 - June 2023 Note: Medical care includes medical services as wel l as commodities such as equipment and drugs. Source: Peterson, KFF Health System Tracker Extract 1: Why are prescription drug prices in the US so high Americans spend more on prescription drugs than anyone else in the world. It’s true that they take a lot of pills. But what really sets the US apart from most other countries is high prices. In August, Congress passed a law aimed at cutting drug costs for elderly and disabled patients who rely on the government’s Medicare health program. The pharmaceutical industry opposes the change, and Merck & Co. is suing the government over it. Higher drug prices are often the result of drug patents that pharmaceutical companies hold. Strategic drug patenting prevents companies that make generic drugs from competing. T his is because their generic products could be subject to court action. While private insurers and government programs pick up the biggest share of the bill, high drug costs are ulti mately passed on to members of the public through the premiums they pay to keep their insurance policies active and the taxes they pay to the government. Patients in the US directly pay about 13% of prescription medicine costs out of their own pockets. In one survey, one in five adults in the US said they failed to complete a prescribed course of medicine because of cost. Source : Adapted from Bloomberg, 19 Jul 2022 Extract 2: Will imposing price control on prescription drugs help? A lot of people, including President Joe Biden, blame "corporate greed" for high prescription costs. In his State of the Union address this month,