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ConfusedSEA
Joined: 20 Aug 2019
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GMAT 1: 630 Q40 V36
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01 Feb 2020, 22:50
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Difficulty:
95%
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Question Stats:
12% (02:46) correct
88%
(02:48)
wrong
based on 17
sessions
History
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Not Attempted Yet
Recently, the emergence of unintended and harmful side effects in many nascent, high-profile prescription drugs has resulted in a large increase in claims by drug companies against product liability insurance policies. This has caused product liability insurance premiums on projects that develop new prescription drugs to rise rapidly, which has led drug companies to try to extract more profits from existing, proven prescription drugs rather than trying to create new ones.
Which of the following, if true, taken together with the information above, best supports the conclusion that the cost of prescription drugs will continue to increase?
A: Since the risk of underwriting a drug-development project is spread over very few projects, premiums on these projects must be very high.
B: Whenever approved prescription drugs turn out to have unintended and harmful side effects, it is often very difficult to figure out which component of the drug's chemical formula has caused the side effect.
C: The higher the drug company's profit expectations are for a drug, the more it will be prescribed making it more likely that side effects will be revealed.
D: Most drug-development projects do not result in marketable drugs, so economies of scale in drug development are impossible to achieve.
E: Since many new drugs are developed by large, bureaucratic companies, inefficiencies in drug-development projects are unavoidable.
Which of the following, if true, taken together with the information above, best supports the conclusion that the cost of prescription drugs will continue to increase?
A: Since the risk of underwriting a drug-development project is spread over very few projects, premiums on these projects must be very high.
B: Whenever approved prescription drugs turn out to have unintended and harmful side effects, it is often very difficult to figure out which component of the drug's chemical formula has caused the side effect.
C: The higher the drug company's profit expectations are for a drug, the more it will be prescribed making it more likely that side effects will be revealed.
D: Most drug-development projects do not result in marketable drugs, so economies of scale in drug development are impossible to achieve.
E: Since many new drugs are developed by large, bureaucratic companies, inefficiencies in drug-development projects are unavoidable.
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02 Feb 2020, 04:06
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aaronlcr93
Discussed here: recently-the-emergence-of-unintended-and-harmful-side-effects-in-many-210473.html Hope it helps.
THIS TOPIC IS LOCKED AND ARCHIVED.
Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Where to now? Join ongoing discussions on thousands of quality questions in our Critical Reasoning (CR) Forum
Still interested in this question? Check out the "Best Topics" block above for a better discussion on this exact question, as well as several more related questions.
Thank you for understanding, and happy exploring!
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