The Drug Approval Process Regulated by the Federal Drug Administration

question 64

Multiple Choice

The drug approval process regulated by the Federal Drug Administration (FDA) slows the pace at which helpful medications reach the marketplace. The alternative of having the medication available to consumers earlier is an example of:

• A) the opportunity cost of the FDA's regulation.
• B) how easy it is to identify and evaluate sunk costs.
• C) the marginal benefit of the FDA's regulation.
• D) promoting consumer health in the population.

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Definitions:

Equal Intervals

Regular, consistent spaces or periods of time between events or items.

Adjusting Entries

Bookkeeping records completed at the conclusion of a financial period to apportion revenues and expenses to the timeframe in which they truly happened.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, including income statement, balance sheet, and cash flow statement.

Cash Basis

An accounting method where revenue and expenses are recognized only when cash is received or paid.