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.

---

Definitions:

Idealistic Approach

An approach that emphasizes high standards and principles, often with a focus on what is perfect or desirable over what is realistic.

Formal Operational

The stage of cognitive development in Piaget's theory, typically beginning around age 12, where individuals gain the ability for abstract thinking.

Alternatives

Different options or choices available in a given situation or problem-solving context.

Laptop

A portable personal computer with a screen and keyboard integrated into a single unit that can be easily moved and used in various locations.