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

question 91

Multiple Choice

In some countries,a binding price ceiling is placed on prescription medicines.What would someone 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 prices 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:

Semiperiphery

Countries that occupy an intermediate position in the global economic system, neither fully developed nor among the least developed.

Periphery

In the context of world systems theory, refers to countries that are less developed, often exploited for their resources by more developed core countries, and have weaker economic and political systems.

Population Growth

Population growth refers to the increase in the number of individuals in a population, often measured by the natural rate of birth minus deaths, as well as migration factors.

Economic Development

The process by which the overall health, well-being, and academic level of a nation or region is improved through industrial, political, and social changes.