Find all School-related info fast with the new School-Specific MBA Forum

It is currently 22 Aug 2014, 07:46

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

For several years, per capita expenditure on prescription

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
VP
VP
User avatar
Joined: 25 Jun 2006
Posts: 1176
Followers: 2

Kudos [?]: 37 [0], given: 0

GMAT Tests User
For several years, per capita expenditure on prescription [#permalink] New post 27 Nov 2006, 05:12
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

100% (00:00) correct 0% (00:00) wrong based on 2 sessions
For several years, per capita expenditure on prescription drugs in Voronia rose by fifteen percent or more annually. In order to curb these dramatic increases, the ministry of health prohibited drug manufacturers from raising any of their products' prices. Even though use of prescription drugs did not expand after this price freeze, per capita expenditure for prescription drugs continued to increase by a substantial percentage each year.

Which of the following, if true, most helps to explain why the ministry's plan did not achieve its goal?

A. After price increases were prohibited, drug manufacturers concentrated on producing new medications to replace existing products.

B. The population of Voronia rose steadily throughout the period.

C. Improvements in manufacturing processes enabled drug manufacturers to maintain high profit levels on drugs despite the price freeze.

D. In addition to imposing a price freeze, the government encouraged the doctors to prescribe generic versions common drugs instead of the more expensive brand-name vendors.

E. After price increases were prohibited, some foreign manufacturers of expensive drugs ceased marketing them in Voronia.
Director
Director
User avatar
Joined: 05 Feb 2006
Posts: 904
Followers: 1

Kudos [?]: 33 [0], given: 0

GMAT Tests User
 [#permalink] New post 27 Nov 2006, 05:25
Only A works here....

More products were produced, people spent more because there was a bigger choice of products and presumably bought more different products....
Senior Manager
Senior Manager
User avatar
Joined: 11 Jul 2006
Posts: 385
Location: TX
Followers: 1

Kudos [?]: 6 [0], given: 0

GMAT Tests User
 [#permalink] New post 27 Nov 2006, 07:16
^B^
Director
Director
avatar
Joined: 17 Jul 2006
Posts: 716
Followers: 1

Kudos [?]: 8 [0], given: 0

GMAT Tests User
 [#permalink] New post 27 Nov 2006, 07:21
A is the answer
VP
VP
User avatar
Joined: 21 Aug 2006
Posts: 1026
Followers: 1

Kudos [?]: 19 [0], given: 0

GMAT Tests User
Re: CR: prescription drug - GMATPrep [#permalink] New post 27 Nov 2006, 07:53
tennis_ball wrote:
For several years, per capita expenditure on prescription drugs in Voronia rose by fifteen percent or more annually. In order to curb these dramatic increases, the ministry of health prohibited drug manufacturers from raising any of their products' prices. Even though use of prescription drugs did not expand after this price freeze, per capita expenditure for prescription drugs continued to increase by a substantial percentage each year.

Which of the following, if true, most helps to explain why the ministry's plan did not achieve its goal?

A. After price increases were prohibited, drug manufacturers concentrated on producing new medications to replace existing products.


Drug manufacturers concentrated on producing medicine that is expensive. They did not increase the price of the existing products. They merely replaced them with new ones. Perhaps quantity of intake is also the same as previous medicines. That could be the reason why there is no increase in the overall consumption.


B. The population of Voronia rose steadily throughout the period.

C. Improvements in manufacturing processes enabled drug manufacturers to maintain high profit levels on drugs despite the price freeze.

D. In addition to imposing a price freeze, the government encouraged the doctors to prescribe generic versions common drugs instead of the more expensive brand-name vendors.

E. After price increases were prohibited, some foreign manufacturers of expensive drugs ceased marketing them in Voronia.

_________________

The path is long, but self-surrender makes it short;
the way is difficult, but perfect trust makes it easy.

Senior Manager
Senior Manager
avatar
Joined: 19 Jul 2006
Posts: 361
Followers: 1

Kudos [?]: 2 [0], given: 0

GMAT Tests User
 [#permalink] New post 27 Nov 2006, 09:16
Agree A
Director
Director
avatar
Joined: 24 Aug 2006
Posts: 754
Location: Dallas, Texas
Followers: 5

Kudos [?]: 26 [0], given: 0

GMAT Tests User
 [#permalink] New post 27 Nov 2006, 17:28
A !
_________________

"Education is what remains when one has forgotten everything he learned in school."

VP
VP
User avatar
Joined: 25 Jun 2006
Posts: 1176
Followers: 2

Kudos [?]: 37 [0], given: 0

GMAT Tests User
 [#permalink] New post 27 Nov 2006, 17:39
OA is A.
  [#permalink] 27 Nov 2006, 17:39
    Similar topics Author Replies Last post
Similar
Topics:
1 Experts publish their posts in the topic For several years, per capita expenditure on prescription Shawshank 5 21 Aug 2012, 23:36
8 For several years, per capita expenditure on prescription naruphanp 7 09 Aug 2012, 01:10
For several years, per capita expenditure on prescription eybrj2 3 28 Nov 2011, 22:57
7 Experts publish their posts in the topic For several years, per capita expenditure on prescription cialit0506 43 07 Aug 2009, 05:31
Per-capita income last year was $25000. Per-capita income is chunjuwu 5 16 Feb 2005, 02:39
Display posts from previous: Sort by

For several years, per capita expenditure on prescription

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.