Effective AIDS Drugs Did Not Exist in the Early 1980s

question 62

Multiple Choice

Effective AIDS drugs did not exist in the early 1980s. When they became available they were very expensive. When people use these facts to say that the price of AIDS drugs has increased economists generally

• A)agree.
• B)suggest they are confusing price increases with quality increases.
• C)note that the drugs are not as effective as advertised.
• D)stay out of this discussion.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a framework of accounting standards, principles, and procedures.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee but not control those policies.

Ownership Percentage

This refers to the fraction or percentage of a company or asset that is owned by a particular shareholder or investor.

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Shares of a company that grant the shareholder the right to vote on company matters, such as electing the board of directors, at shareholder meetings.