Which of the following statements is true of direct to consumer advertising (DTCA)?
a. There is a positive correlation between a drug's price and the amount of DTCA practiced.
b. DTCA increases pharmaceutical profits but does little to improve consumer welfare.
c. The majority of pharmaceutical spending on advertising is focused on the patient.
d. DTCA attracts more patients to consider using the product who might not have known about the drug.
e. Pharmaceutical advertising does little to educate patients. Its sole purpose is to promote product use.
d. DTCA attracts more patients to consider using the product who might not have known about the drug.
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A ______ is a legally binding promise to make specific future payments.
A. stock B. coupon C. bond D. deposit
In John Rawls’ A Theory of Justice, people choose the rules for distributing income from behind a veil of ignorance. People understand that ability determines income, but they do not know their abilities or the abilities of others. Rawls argues that people are risk averse and will choose the distribution rule that maximizes their income in the worst-case scenario (they have relatively little ability). An economist would call this strategy
A. minimax. B. maximin. C. irrational. D. tacit collusion.
First-mover advantage is:
A. more important to those who have less to bargain with. B. more important in a repeated sequential game than in a one-round sequential game. C. more important in a repeated game than in a sequential game. D. more important in an ultimatum game than in a repeated game.
Government purchases of goods and services are
A. exhaustive because they directly absorb or employ resources and account for production. B. neither exhaustive or nonexhaustive because of the tax revenues that finance these purchases. C. nonexhaustive because they do not directly absorb resources and account for production. D. both exhaustive and nonexhaustive because in some cases they do directly absorb resources or account for production and in other cases they do not.