Critics Point Out That in the Drug Industry, Where a Pill

question 44

Multiple Choice

Critics point out that in the drug industry, where a pill costing five cents to make may cost the consumer $2 to buy. This is an example of which of the following?

• A)deceptive advertising
• B)redlining
• C)excessive markups
• D)high-pressure selling
• E)shoddy products

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Definitions:

Straight-line Method

A depreciation method that allocates an equal amount of depreciation each year over the useful life of an asset.

MACRS

Modified Accelerated Cost Recovery System, a method of depreciation in the U.S. that allows businesses to recover investments in certain property through annual deductions.

Property

Physical or intangible assets owned by an individual or business, including land, buildings, and intellectual property.

Residential Rental Property

Real estate property that is used for housing tenants and includes houses, apartments, and townhouses.