It Is Not Uncommon to Find That Prescription Drugs Sell

question 42

Multiple Choice

It is not uncommon to find that prescription drugs sell for more in Canada than they do in other countries.How could drug companies' price strategy affect our social welfare

• A)Drug companies are engaging in price discrimination, and this practice certainly reduces global social welfare.
• B)Global social welfare could be improved if the price in Canada were reduced to the price charged in other countries.
• C)Global social welfare could be improved if the price in the other countries were increased to the price charged in Canada.
• D)Drug companies are engaging in price discrimination, but this might improve global social welfare if it gives more people access to the drugs.

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Definitions:

Deep Acting

An emotional labor strategy where individuals attempt to feel the emotions they are supposed to display, rather than just superficially acting them out.

Internal Emotion

A personal and subjective experience of feeling, which originates inside an individual and can influence their thoughts and behavior.

Fear

A primal emotion experienced in anticipation of some specific pain or danger, often leading to behavioral changes such as fight or flight.

Embarrassment

A feeling of self-consciousness, shame, or awkwardness that arises from a socially uncomfortable situation.