Noah Is Examining the Effects of Taking the Medication Lactaid

question 127

Multiple Choice

Noah is examining the effects of taking the medication Lactaid, which is for people who are lactose intolerant. Noah is curious if prolonged use of the medication increases tolerance of lactose. Noah randomly assigns lactose-intolerant participants to one of two groups. One group will ingest dairy but will be given a placebo pill (no Lactaid) . Noah is aware that for these participants, ingesting dairy without Lactaid may result in digestive issues. Noah should be concerned about the:

• A) psychological harm of his participants.
• B) physical harm of his participants.
• C) economic harm of his participants.
• D) legal harm of his participants.

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Definitions:

Deadweight Losses

The loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved, leading to a net loss in societal welfare.

Incentives

Motivational factors or mechanisms that encourage individuals or groups to behave in a certain way or to take specific actions.

Lump-Sum Taxes

Taxes that are the same amount for everyone, regardless of the taxpayer’s income level or ability to pay.

Marginal Tax Rates

The percentage of tax applied to the last dollar earned, indicating the fraction of any additional income that will be taken in taxes.