In Some Countries,a Binding Price Ceiling Is Placed on Prescription

question 157

Multiple Choice

In some countries,a binding price ceiling is placed on prescription medicines.What would you expect the prescription medicine market to be like in these countries?

• A) The legal maximum price would mean that all consumers are able to receive the medicines they need at a price they can afford.
• B) The legal maximum price would mean that pharmaceutical companies face an incentive to sell more prescription medicines in that country.
• C) The legal maximum price would mean that it is unlikely that an illegal and dangerous black market for prescription drugs will form in that country.
• D) The legal maximum price would mean that pharmaceutical companies face an incentive to develop new prescription medicines.
• E) The legal maximum price would mean that not all consumers will have access to prescription medicines.

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Definitions:

Temporal Lobe

Part of the cerebral cortex that includes hearing, language, musical abilities, facial recognition, and emotional processing; lies below the lateral fissure, beneath the temporal bone at the side of the skull.

Braille

A tactile writing system used by people who are visually impaired, consisting of raised dots that represent letters, numbers, and punctuation marks.

Dominant Hand

The hand that is most used by an individual for performing tasks, showing better manual dexterity and coordination.

Left Hemisphere

The left side of the brain, typically associated with linguistic abilities, logical reasoning, and analytical tasks.