According to the Box, "Bad Medicine for Consumers?" the Hypothetical

question 36

Multiple Choice

According to the box, "Bad Medicine for Consumers?" the hypothetical pharmaceutical firm you work for recently increased the price of a chemotherapy drug from $300 to $3,000! What concern associated with capitalism best illustrates this ethical dilemma?

• A) Some businesspeople may let greed guide guide their behavior.
• B) Through the lack of quality healthcare, the number of cancer patients has increased and the demand for chemotherapy drugs is greater than the supply.
• C) Thanks to many different kinds of chemotherapy drugs, there is now a surplus and prices need to increase to make a profit.
• D) The government regulates pharmaceutical costs and can raise or lower the price as it sees fit.

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Definitions:

Cash Dividends

Profits paid out to shareholders by a corporation in the form of cash.

Retain Earnings

Profits that a company chooses not to pay out as dividends but instead reinvests in the business or keeps as a reserve for specific objectives.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interest and usually voting rights in the company.

Legal Case

A dispute between opposing parties resolved in a court of law.