Which Statement Is Accurate Regarding Prescription Drugs in the United

question 6

Multiple Choice

Which statement is accurate regarding prescription drugs in the United States?

• A)The pharmaceutical industry has been among the most consistently profitable sectors in the United States with net profits in the billions.
• B)The negotiating power of large federal programs has helped bring down drug prices for vulnerable populations.
• C)Increases in prescription drug prices have generally lagged behind increases in the Consumer Price Index.
• D)Prescription drugs are not expensive in comparison to the benefits they provide to those who are sick.

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Definitions:

Trading

The act of buying, selling, or exchanging goods, services, or financial instruments within markets.

Loads

In finance, refers to fees or commissions charged by a mutual fund, which can be at the time of purchase (front-end load), time of sale (back-end load), or as an annual expense (level load).

Absolute Advantage

The ability of a party (country, company, individual) to produce a greater quantity of a good, product, or service than competitors using the same amount of resources.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, leading to more efficient trade possibilities.