What Is the Most Likely Reason Why Medicare Advisors Would

question 11

Multiple Choice

What is the most likely reason why Medicare advisors would approve the use of a $93,000 prostate cancer therapy that extends life for an average of four months?

• A) A year of life is valued at $400,000.
• B) Heavy lobbying by the drug company would influence the decision.
• C) For some patients, the therapy has been shown to extend life by two years.
• D) The therapy's cost is expected to fall to less than $10,000.

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Definitions:

Value-Weighted Index

A stock market index in which each component is weighted in proportion to its market value.

Price-Weighted Index

A stock market index in which each company's influence on the index's movement is proportional to its stock price.

Bond Price Index

An index that measures the price changes of a specific set of bonds, reflecting overall movements in the bond market.

Pretax Rate of Return

The rate of return on an investment before taxes have been considered or deducted.