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drugs...800scoreQ

by advita » Thu Dec 30, 2010 1:21 am
currently, prescription drug prices are set by drug companies according to market demands. A new regulation under considerration would allow the goverment to require drug manufacturers to sell certain drugs at lower prices in excahnge for faster regulatory approval of the drugs themselves.This new prctice would result in drug companies receiving less revenue per year for each drug available on the market nad would therefore impede the development of new medicines.

which of the following , if true, most seriously indicates that the new regulation favours drug manufacturers'long term economis interest..??

1. Prescription drugs are typically purchased based on the adverting and efficacy and not pricing.
2.Regulatory approval often takes more than two years, during which time a manufacturer cannot recover the heavy costs spent to develop the drug.
3.one of the most expensive parts of the process by which manufacturers bring drugs to the market is the testing and approval procedure.
4. A regulation like the one under consideration was first enacted in a country where there is no patent protection for drugs developed for human consumption.
5. the lower the prices required by the government woyld still be higher than the prices of the generic alternatives.



i found this question totally odd....with almost all answer choices not good....what do you say...??
BTW, if choose what could be the answer.....B/E.....????

source- 800score.com .... also does anybody have idea about 800score.com questions ...are they representative of Gmat like.
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by Ravish » Thu Dec 30, 2010 1:55 am
I pick B.

The only other answer choice that can be tempting to pick would be C. However, here is why B is better:


The argument only tells us that the approval will be QUICKER in exchange for the lower prices.

Looking at B , we can assume that if approval takes 2 years and results in a long wait for the drug companies before they start profiting of the drug, by expediting the time of approval, it gives drug companies the chance to start recouping their profits a lot faster than before which can help offset the lowered costs.

In contrast, C tells us that the approval is the most expensive part of the process. However, the argument tells us nothing about whether the expedited approval actually includes a cut in the cost of approval. All we know is that it will be quicker.

E is not correct because , if the prices are higher after the lowered costs as compared to generic alternatives, it means that , before the new laws, the prices were MUCH more higher so it still means that the drug companies take a hit on the profits. Hence E is eliminated.
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by DarkKnight » Mon Jan 03, 2011 10:55 am
I agree. It should be B. What's the OA?
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by bblast » Mon Jan 03, 2011 11:51 am
1 more for B.
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by prachich1987 » Mon Jan 03, 2011 6:08 pm
advita wrote:currently, prescription drug prices are set by drug companies according to market demands. A new regulation under considerration would allow the goverment to require drug manufacturers to sell certain drugs at lower prices in excahnge for faster regulatory approval of the drugs themselves.This new prctice would result in drug companies receiving less revenue per year for each drug available on the market nad would therefore impede the development of new medicines.

which of the following , if true, most seriously indicates that the new regulation favours drug manufacturers'long term economis interest..??

1. Prescription drugs are typically purchased based on the adverting and efficacy and not pricing.
2.Regulatory approval often takes more than two years, during which time a manufacturer cannot recover the heavy costs spent to develop the drug.
3.one of the most expensive parts of the process by which manufacturers bring drugs to the market is the testing and approval procedure.
4. A regulation like the one under consideration was first enacted in a country where there is no patent protection for drugs developed for human consumption.
5. the lower the prices required by the government woyld still be higher than the prices of the generic alternatives.



i found this question totally odd....with almost all answer choices not good....what do you say...??
BTW, if choose what could be the answer.....B/E.....????

source- 800score.com .... also does anybody have idea about 800score.com questions ...are they representative of Gmat like.
I would go for B
What's the OA?
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by Night reader » Mon Jan 03, 2011 7:32 pm
advita wrote:currently, prescription drug prices are set by drug companies according to market demands. A new regulation under considerration would allow the goverment to require drug manufacturers to sell certain drugs at lower prices in excahnge for faster regulatory approval of the drugs themselves.This new prctice would result in drug companies receiving less revenue per year for each drug available on the market nad would therefore impede the development of new medicines.

which of the following , if true, most seriously indicates that the new regulation favours drug manufacturers'long term economis interest..??

1. Prescription drugs are typically purchased based on the adverting and efficacy and not pricing.
2.Regulatory approval often takes more than two years, during which time a manufacturer cannot recover the heavy costs spent to develop the drug.
3.one of the most expensive parts of the process by which manufacturers bring drugs to the market is the testing and approval procedure.
4. A regulation like the one under consideration was first enacted in a country where there is no patent protection for drugs developed for human consumption.
5. the lower the prices required by the government woyld still be higher than the prices of the generic alternatives.



i found this question totally odd....with almost all answer choices not good....what do you say...??
BTW, if choose what could be the answer.....B/E.....????

source- 800score.com .... also does anybody have idea about 800score.com questions ...are they representative of Gmat like.
hi advita, I am subscribed to 800score.com but haven't used any piece of their testing yet. I researched the net and now may conclude that 800score.com presents not as much challenging Verbal part as real GMAT - so don't be lured away by easy CR and high scores...

About the CR entry here. It would be better to link the question to the text first and try to analyze the mixed nature of entry - premise-conclusion-assumptions-conclusion

let's remake this entry:

currently, prescription drug prices are set by drug companies according to market demands. A new regulation under considerration would allow the goverment to require drug manufacturers to sell certain drugs at lower prices in excahnge for faster regulatory approval of the drugs themselves.This new prctice would result in drug companies receiving less revenue per year for each drug available on the market nad would therefore impede the development of new medicines.
... the new regulation favours drug manufacturers' long term economis interest..

Ok now question would be: which of the following , if true, most seriously supports that new regulation favours drug manufacturers' long term economis interest..?

So we are dealing with MUST be true element combined with the assumption 'drug companies receiving less revenue per year for each drug available on the market ... impede the development of new medicines ...favours drug manufacturers' long term economis interest.'

OR - new regulations force drug companies to gain less revenues from drugs and this would impede their development of new medicines anyway; drug companies are either forced to abandon their business or continue?

And we need to find very good reason for drug companies to stay in the business.

from all of our answer choices the most suitable answer is 3.one of the most expensive parts of the process by which manufacturers bring drugs to the market is the testing and approval procedure.

2.Regulatory approval often takes more than two years, during which time a manufacturer cannot recover the heavy costs spent to develop the drug. can also be a contender, but who knows if the drug companies will recover the costs in the following years, so we reject 2!

Answer 3.
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