PrepTest 85, Section 3, Question 3

Difficulty:

Dario: The government should continue to grant patents for all new drug compounds. Patents promote innovation by rewarding pharmaceutical companies for undertaking the costly research needed to develop new drugs.

Dario: The government should continue to grant patents for all new drug compounds. Patents promote innovation by rewarding pharmaceutical companies for undertaking the costly research needed to develop new drugs.

Cynthia: Promoting innovation is certainly important. For this reason, patents should be granted only for truly innovative drugs, not for minor variants of previously existing drugs. Since it is much less expensive to tweak an existing drug than to develop a wholly new one, pharmaceutical companies tend to focus primarily on the cheaper alternative.

Dario: The government should continue to grant patents for all new drug compounds. Patents promote innovation by rewarding pharmaceutical companies for undertaking the costly research needed to develop new drugs.

Cynthia: Promoting innovation is certainly important. For this reason, patents should be granted only for truly innovative drugs, not for minor variants of previously existing drugs. Since it is much less expensive to tweak an existing drug than to develop a wholly new one, pharmaceutical companies tend to focus primarily on the cheaper alternative.

Dario: The government should continue to grant patents for all new drug compounds. Patents promote innovation by rewarding pharmaceutical companies for undertaking the costly research needed to develop new drugs.

Question

3

Dario and Cynthia disagree over whether

pharmaceutical companies should be rewarded for pursuing innovation

patents should be granted for all drug compounds

developing truly innovative drugs is costly

pharmaceutical companies have an incentive to create minor variants of existing drugs

drug patents can promote innovation

B

Explanations

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