Some prescription drugs sell for more in the United States than they do in other countries. Which of the following statements about this issue is most likely to be true?
a. Drug companies are engaging in price discrimination, and this practice certainly reduces global social welfare.
b. Global social welfare could be improved if the price in the United States were reduced to the price charged in other countries.
c. Global social welfare could be improved if the price in the other countries were increased to the price charged in the United States.
d. Drug companies are engaging in price discrimination, but this might improve global social welfare if it gives more people access to the drugs.
d
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Indicate whether the statement is true or false
Which of the following is a normative economic statement?
A. The Federal budget deficit rose by 120 billion dollars B. The unemployment rate is expected to fall next month C. A trade surplus of 200 billion dollars should be our policy goal D. The federal funds rate was reduced by half a percentage point