What is the rationale for FDA regulation of drugs?To protect the consumer from dangerous drugsBecause physicians may not be knowledgeable about all the new drugs in the marketBoth a and bNeither a nor b

FDA stands for Food and Drug Administration. It develops regulations regarding the food, drugs, and…

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Economics

What is the rationale for FDA regulation of drugs?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 26CTQ: Why are generic pharmaceuticals significantly cheaper than name brand ones?

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Concept explainers

Price Ceilings and Price Floors

Price Ceilings and Price Floors strategy is used by the Government to control the prices of certain goods and services in the market. This method helps the Government to protect the interests of both buyers and suppliers in difficult economic times.

Question

What is the rationale for FDA regulation of drugs?
To protect the consumer from dangerous drugs
Because physicians may not be knowledgeable about all the new drugs in the market
Both a and b
Neither a nor b

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