One Reason Patent Protection Is Vitally Important to Pharmaceutical Firms

question 43

Multiple Choice

One reason patent protection is vitally important to pharmaceutical firms is

• A)successful new drugs are not profitable. If firms are not granted patents many would go out of business and health care would be severely diminished.
• B)the approval process for new drugs through the Food and Drug Administration can take more than 10 years and is very costly. Patents enable firms to recover costs incurred during this process.
• C)that taxes on profits from drugs are very high; profits from patent protection enable firms to pay these taxes.
• D)the high salaries pharmaceutical firms pay to scientists and doctors make their labor costs higher than for any other business. Profits from patents are needed to pay these labor costs.

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Definitions:

Validity

The degree to which a theory, finding, or measurement is grounded in reality and accurately reflects the true state of affairs.

Independent Variable

The variable in an experiment that is manipulated or changed to observe its effect on the dependent variable.

Research Assistant

A person who supports academic or professional research efforts, typically conducting experiments, data collection, or analysis.

Self-reported Arousal

A subjective measure of one's own emotional and physiological state of alertness, excitement, or activation, often collected via questionnaires or interviews.