Drug companies tend to attribute higher drug prices on
A. high litigation costs on drugs that are ultimately shown to be dangerous.
B. the low percentage of attempts that actually result in revenue producing drugs and high litigation costs on drugs that are ultimately shown to be dangerous.
C. doctors distributing too many free samples.
D. the low percentage of attempts that actually result in revenue producing drugs.
Answer: B
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Financial intermediaries are institutions that facilitate the movement of funds from savers to investors because they
A) guarantee positive returns on investments. B) eliminate the costs of negotiating such transactions. C) eliminate risks. D) provide liquidity.
Consumption smoothing is a logical consequence of ________
A) basing decision-making on real rather than nominal interest rates B) the convexity of indifference curves and the ability to borrow and lend C) the negative slope fo the intertemporal budget constraint D) rational expectations