Passage:Last week, the government used the Drug Price Control Order, 2013, to increase the price ceilingfor 21 medicines by as much as 50% to ensure their availability in the market. This is a welcome move because lower prices would have further limited the availability of these drugs, some of which include those used for malaria, leprosy and allergy. The decision by the regulatory authority andndash; usually known to reduce prices of essential drugs andndash; was prompted by repeated petitions by the pharmaceutical industry, which pointed out that the increasing cost of imports had made the production of some of these drugs unviable. Prices of bulk drugs and active pharmaceutical ingredients have, in fact, gone up by up to 88%, and are largely imported. This raises a basic question: Should the government control prices? The motivation for controlling drug prices is not very difficult to understand. Unlike some of the developed countries, where most of the population has insurance coverage or medical facilities are provided by the state, medical expenses in India are borne by citizens, largely through out-of pocket expenses. Therefore, the state intervenes by keeping prices of some drugs in check to contain such spending. However, the unintended consequence is that it affects the supply of drugs and can potentially make citizens worse off. The risk of non-availability was an important reason for raising prices. Although all pharmaceutical companies may not stop producing drugs with price control, they may limit the supply. Further, the government usually dithers on price hike because of political considerations so that it is not accused of favouring private companies. Thus, the government should stay away from dictating prices and allow the market to function. Competition in the marketplace will ensure that no company is able to make extraordinary profits in basic and essential drugs. Since the state has limited resources, it should focus on regulation, and ensure that the quality of drugs supplied in the market is not compromised at any point. Q.The pharmaceutical industry has been asking the government to raise the prices of certain drugs for a long time, but has not received a response. Why, according to the author, could this be?a)The government is indecisive about raising prices for the fear of being accused of favouring private companies.b)Private companies only value profit, and do not pay attention to the quality of medicines they manufacture.c)The government has limited resources, and may not have been able to study the details of the pharmaceutical industryandrsquo;s demands.d)Since deciding the prices of medicines is not the governmentandrsquo;s job, it would wish to avoid doing soCorrect answer is option 'A'. Can you explain this answer?

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Passage: Last week, the government used the Drug Price Control Order, 2013, to increase the price ceiling for 21 medicines by as much as 50% to ensure their availability in the market. This is a welcome move because lower prices would have further limited the availability of these drugs, some of which include those used for malaria, leprosy and allergy. The decision by the regulatory authority – usually known to reduce prices of essential drugs – was prompted by repeated petitions by the pharmaceutical industry, which pointed out that the increasing cost of imports had made the production of some of these drugs unviable. Prices of bulk drugs and active pharmaceutical ingredients have, in fact, gone up by up to 88%, and are largely imported. This raises a basic question: Should the government control prices? The motivation for controlling drug prices is not very difficult to understand. Unlike some of the developed countries, where most of the population has insurance coverage or medical facilities are provided by the state, medical expenses in India are borne by citizens, largely through out-of pocket expenses. Therefore, the state intervenes by keeping prices of some drugs in check to contain such spending. However, the unintended consequence is that it affects the supply of drugs and can potentially make citizens worse off. The risk of non-availability was an important reason for raising prices. Although all pharmaceutical companies may not stop producing drugs with price control, they may limit the supply. Further, the government usually dithers on price hike because of political considerations so that it is not accused of favouring private companies. Thus, the government should stay away from dictating prices and allow the market to function. Competition in the marketplace will ensure that no company is able to make extraordinary profits in basic and essential drugs. Since the state has limited resources, it should focus on regulation, and ensure that the quality of drugs supplied in the market is not compromised at any point.

Q. The pharmaceutical industry has been asking the government to raise the prices of certain drugs for a long time, but has not received a response. Why, according to the author, could this be?

a)
The government is indecisive about raising prices for the fear of being accused of favouring private companies.
b)
Private companies only value profit, and do not pay attention to the quality of medicines they manufacture.
c)
The government has limited resources, and may not have been able to study the details of the pharmaceutical industry’s demands.
d)
Since deciding the prices of medicines is not the government’s job, it would wish to avoid doing so

Correct answer is option 'A'. Can you explain this answer?

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Passage:Last week, the government used the Drug Price Control Order, 2...

The government is indecisive about raising prices for the fear of being accused of favouring private companies. The author states this towards the end of the second paragraph, and says that this would be for political considerations. There is no information in the passage to support (b) as the correct option. While the author says that the government has limited resources, and argues that it should not set prices for medicines, the author does not provide these as reasons for delays by the government in setting the prices of medicines.

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Passage:Last week, the government used the Drug Price Control Order, 2013, to increase the price ceilingfor 21 medicines by as much as 50% to ensure their availability in the market. This is a welcome move because lower prices would have further limited the availability of these drugs, some of which include those used for malaria, leprosy and allergy. The decision by the regulatory authority – usually known to reduce prices of essential drugs – was prompted by repeated petitions by the pharmaceutical industry, which pointed out that the increasing cost of imports had made the production of some of these drugs unviable. Prices of bulk drugs and active pharmaceutical ingredients have, in fact, gone up by up to 88%, and are largely imported. This raises a basic question: Should the government control prices? The motivation for controlling drug prices is not very difficult to understand. Unlike some of the developed countries, where most of the population has insurance coverage or medical facilities are provided by the state, medical expenses in India are borne by citizens, largely through out-of pocket expenses. Therefore, the state intervenes by keeping prices of some drugs in check to contain such spending. However, the unintended consequence is that it affects the supply of drugs and can potentially make citizens worse off. The risk of non-availability was an important reason for raising prices. Although all pharmaceutical companies may not stop producing drugs with price control, they may limit the supply. Further, the government usually dithers on price hike because of political considerations so that it is not accused of favouring private companies. Thus, the government should stay away from dictating prices and allow the market to function. Competition in the marketplace will ensure that no company is able to make extraordinary profits in basic and essential drugs. Since the state has limited resources, it should focus on regulation, and ensure that the quality of drugs supplied in the market is not compromised at any point.Q.The state places a very low price for the sale of an essential medicine, which is lower than the price of the imported ingredients used to make that medicine. What, according to the author, would be the effect of setting such a low price?

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Passage:Last week, the government used the Drug Price Control Order, 2013, to increase the price ceilingfor 21 medicines by as much as 50% to ensure their availability in the market. This is a welcome move because lower prices would have further limited the availability of these drugs, some of which include those used for malaria, leprosy and allergy. The decision by the regulatory authority – usually known to reduce prices of essential drugs – was prompted by repeated petitions by the pharmaceutical industry, which pointed out that the increasing cost of imports had made the production of some of these drugs unviable. Prices of bulk drugs and active pharmaceutical ingredients have, in fact, gone up by up to 88%, and are largely imported. This raises a basic question: Should the government control prices? The motivation for controlling drug prices is not very difficult to understand. Unlike some of the developed countries, where most of the population has insurance coverage or medical facilities are provided by the state, medical expenses in India are borne by citizens, largely through out-of pocket expenses. Therefore, the state intervenes by keeping prices of some drugs in check to contain such spending. However, the unintended consequence is that it affects the supply of drugs and can potentially make citizens worse off. The risk of non-availability was an important reason for raising prices. Although all pharmaceutical companies may not stop producing drugs with price control, they may limit the supply. Further, the government usually dithers on price hike because of political considerations so that it is not accused of favouring private companies. Thus, the government should stay away from dictating prices and allow the market to function. Competition in the marketplace will ensure that no company is able to make extraordinary profits in basic and essential drugs. Since the state has limited resources, it should focus on regulation, and ensure that the quality of drugs supplied in the market is not compromised at any point.Q.The state removes all price restrictions on an essential medicine. Pharmaceutical companies start selling that medicine at a price nearly 5 times its earlier price. In such a situation, based on the author’s reasoning above

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Passage:Last week, the government used the Drug Price Control Order, 2013, to increase the price ceilingfor 21 medicines by as much as 50% to ensure their availability in the market. This is a welcome move because lower prices would have further limited the availability of these drugs, some of which include those used for malaria, leprosy and allergy. The decision by the regulatory authority – usually known to reduce prices of essential drugs – was prompted by repeated petitions by the pharmaceutical industry, which pointed out that the increasing cost of imports had made the production of some of these drugs unviable. Prices of bulk drugs and active pharmaceutical ingredients have, in fact, gone up by up to 88%, and are largely imported. This raises a basic question: Should the government control prices? The motivation for controlling drug prices is not very difficult to understand. Unlike some of the developed countries, where most of the population has insurance coverage or medical facilities are provided by the state, medical expenses in India are borne by citizens, largely through out-of pocket expenses. Therefore, the state intervenes by keeping prices of some drugs in check to contain such spending. However, the unintended consequence is that it affects the supply of drugs and can potentially make citizens worse off. The risk of non-availability was an important reason for raising prices. Although all pharmaceutical companies may not stop producing drugs with price control, they may limit the supply. Further, the government usually dithers on price hike because of political considerations so that it is not accused of favouring private companies. Thus, the government should stay away from dictating prices and allow the market to function. Competition in the marketplace will ensure that no company is able to make extraordinary profits in basic and essential drugs. Since the state has limited resources, it should focus on regulation, and ensure that the quality of drugs supplied in the market is not compromised at any point.Q.An essential medicine, ‘Formula A’, is used to treat cancer, and there is only one company engaged in its manufacture. If this is true, then, based on the author’s reasoning in the passage above

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Passage:Last week, the government used the Drug Price Control Order, 2013, to increase the price ceilingfor 21 medicines by as much as 50% to ensure their availability in the market. This is a welcome move because lower prices would have further limited the availability of these drugs, some of which include those used for malaria, leprosy and allergy. The decision by the regulatory authority – usually known to reduce prices of essential drugs – was prompted by repeated petitions by the pharmaceutical industry, which pointed out that the increasing cost of imports had made the production of some of these drugs unviable. Prices of bulk drugs and active pharmaceutical ingredients have, in fact, gone up by up to 88%, and are largely imported. This raises a basic question: Should the government control prices? The motivation for controlling drug prices is not very difficult to understand. Unlike some of the developed countries, where most of the population has insurance coverage or medical facilities are provided by the state, medical expenses in India are borne by citizens, largely through out-of pocket expenses. Therefore, the state intervenes by keeping prices of some drugs in check to contain such spending. However, the unintended consequence is that it affects the supply of drugs and can potentially make citizens worse off. The risk of non-availability was an important reason for raising prices. Although all pharmaceutical companies may not stop producing drugs with price control, they may limit the supply. Further, the government usually dithers on price hike because of political considerations so that it is not accused of favouring private companies. Thus, the government should stay away from dictating prices and allow the market to function. Competition in the marketplace will ensure that no company is able to make extraordinary profits in basic and essential drugs. Since the state has limited resources, it should focus on regulation, and ensure that the quality of drugs supplied in the market is not compromised at any point.Q.Based on the author’s arguments in the passage above, which of the following would be most correct

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Passage:In the 1850s, around the time the Indian Contract Act was about to be drafted, consideration was on its way to becoming a ‘mere technicality’ and could very well have ‘withered away altogether’. It should not be surprising then that framers of a midnineteenth century contract code, beginning tabula rasa, might have wished to fundamentally shake up the rules relating to consideration. Indeed, as Ibbetson argues, ‘a codifying system might legitimately have discarded consideration as inconsistent with the newly imposed legal model’ – an option ‘not open to the Common law.’ But like the ingenious common law reformers in England, the drafters continued to pay ‘lip service’ to the idea of consideration and the ‘reciprocity’ underlying it. They did indeed retain the traditional doctrine’s outer crust of reciprocity: an act or abstinence or promise on the ‘other side’, as it were, but they tweaked this in important ways. The framers of the Act, like the English Courts of the day, made it very easy to find consideration by defining it in capacious terms, which included any act or abstinence or promise, regardless of benefit or detriment. Perhaps, they too, like the Law Revision Committee, were mindful of the fact that a root and branch abolition of the doctrine might arouse ‘suspicion and hostility’ and hence decided to ‘prune away from the doctrine those aspects of it that create hardship’. They also provided that no question of adequacy of consideration could ever be raised. However, the definition under the Indian Contract Act did more than that – Section 2( d) had other elements that lent it the makings of marking the vanishing point of consideration.The definition of consideration under the Indian Contract Act, with its copula ‘at the desire of’, appears to have been calculated to preempt potential hair splitting over whether the consideration in any given case was indeed valuable in the ‘eye of the law’. The idea at play here is that of the subjective theory of value: that the Courts would not second-guess whether any consideration was actually valuable – what the promisor desired is what he got and that settled conclusively the matter of the value of consideration. This was one of the effects of the influence of the will theory on the traditional exchange model of consideration.Q.Which of these is true?

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Passage:Last week, the government used the Drug Price Control Order, 2013, to increase the price ceilingfor 21 medicines by as much as 50% to ensure their availability in the market. This is a welcome move because lower prices would have further limited the availability of these drugs, some of which include those used for malaria, leprosy and allergy. The decision by the regulatory authority – usually known to reduce prices of essential drugs – was prompted by repeated petitions by the pharmaceutical industry, which pointed out that the increasing cost of imports had made the production of some of these drugs unviable. Prices of bulk drugs and active pharmaceutical ingredients have, in fact, gone up by up to 88%, and are largely imported. This raises a basic question: Should the government control prices? The motivation for controlling drug prices is not very difficult to understand. Unlike some of the developed countries, where most of the population has insurance coverage or medical facilities are provided by the state, medical expenses in India are borne by citizens, largely through out-of pocket expenses. Therefore, the state intervenes by keeping prices of some drugs in check to contain such spending. However, the unintended consequence is that it affects the supply of drugs and can potentially make citizens worse off. The risk of non-availability was an important reason for raising prices. Although all pharmaceutical companies may not stop producing drugs with price control, they may limit the supply. Further, the government usually dithers on price hike because of political considerations so that it is not accused of favouring private companies. Thus, the government should stay away from dictating prices and allow the market to function. Competition in the marketplace will ensure that no company is able to make extraordinary profits in basic and essential drugs. Since the state has limited resources, it should focus on regulation, and ensure that the quality of drugs supplied in the market is not compromised at any point. Q.The pharmaceutical industry has been asking the government to raise the prices of certain drugs for a long time, but has not received a response. Why, according to the author, could this be?a)The government is indecisive about raising prices for the fear of being accused of favouring private companies.b)Private companies only value profit, and do not pay attention to the quality of medicines they manufacture.c)The government has limited resources, and may not have been able to study the details of the pharmaceutical industry’s demands.d)Since deciding the prices of medicines is not the government’s job, it would wish to avoid doing soCorrect answer is option 'A'. Can you explain this answer?

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Passage:Last week, the government used the Drug Price Control Order, 2013, to increase the price ceilingfor 21 medicines by as much as 50% to ensure their availability in the market. This is a welcome move because lower prices would have further limited the availability of these drugs, some of which include those used for malaria, leprosy and allergy. The decision by the regulatory authority – usually known to reduce prices of essential drugs – was prompted by repeated petitions by the pharmaceutical industry, which pointed out that the increasing cost of imports had made the production of some of these drugs unviable. Prices of bulk drugs and active pharmaceutical ingredients have, in fact, gone up by up to 88%, and are largely imported. This raises a basic question: Should the government control prices? The motivation for controlling drug prices is not very difficult to understand. Unlike some of the developed countries, where most of the population has insurance coverage or medical facilities are provided by the state, medical expenses in India are borne by citizens, largely through out-of pocket expenses. Therefore, the state intervenes by keeping prices of some drugs in check to contain such spending. However, the unintended consequence is that it affects the supply of drugs and can potentially make citizens worse off. The risk of non-availability was an important reason for raising prices. Although all pharmaceutical companies may not stop producing drugs with price control, they may limit the supply. Further, the government usually dithers on price hike because of political considerations so that it is not accused of favouring private companies. Thus, the government should stay away from dictating prices and allow the market to function. Competition in the marketplace will ensure that no company is able to make extraordinary profits in basic and essential drugs. Since the state has limited resources, it should focus on regulation, and ensure that the quality of drugs supplied in the market is not compromised at any point. Q.The pharmaceutical industry has been asking the government to raise the prices of certain drugs for a long time, but has not received a response. Why, according to the author, could this be?a)The government is indecisive about raising prices for the fear of being accused of favouring private companies.b)Private companies only value profit, and do not pay attention to the quality of medicines they manufacture.c)The government has limited resources, and may not have been able to study the details of the pharmaceutical industry’s demands.d)Since deciding the prices of medicines is not the government’s job, it would wish to avoid doing soCorrect answer is option 'A'. Can you explain this answer? for CLAT 2024 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Passage:Last week, the government used the Drug Price Control Order, 2013, to increase the price ceilingfor 21 medicines by as much as 50% to ensure their availability in the market. This is a welcome move because lower prices would have further limited the availability of these drugs, some of which include those used for malaria, leprosy and allergy. The decision by the regulatory authority – usually known to reduce prices of essential drugs – was prompted by repeated petitions by the pharmaceutical industry, which pointed out that the increasing cost of imports had made the production of some of these drugs unviable. Prices of bulk drugs and active pharmaceutical ingredients have, in fact, gone up by up to 88%, and are largely imported. This raises a basic question: Should the government control prices? The motivation for controlling drug prices is not very difficult to understand. Unlike some of the developed countries, where most of the population has insurance coverage or medical facilities are provided by the state, medical expenses in India are borne by citizens, largely through out-of pocket expenses. Therefore, the state intervenes by keeping prices of some drugs in check to contain such spending. However, the unintended consequence is that it affects the supply of drugs and can potentially make citizens worse off. The risk of non-availability was an important reason for raising prices. Although all pharmaceutical companies may not stop producing drugs with price control, they may limit the supply. Further, the government usually dithers on price hike because of political considerations so that it is not accused of favouring private companies. Thus, the government should stay away from dictating prices and allow the market to function. Competition in the marketplace will ensure that no company is able to make extraordinary profits in basic and essential drugs. Since the state has limited resources, it should focus on regulation, and ensure that the quality of drugs supplied in the market is not compromised at any point. Q.The pharmaceutical industry has been asking the government to raise the prices of certain drugs for a long time, but has not received a response. Why, according to the author, could this be?a)The government is indecisive about raising prices for the fear of being accused of favouring private companies.b)Private companies only value profit, and do not pay attention to the quality of medicines they manufacture.c)The government has limited resources, and may not have been able to study the details of the pharmaceutical industry’s demands.d)Since deciding the prices of medicines is not the government’s job, it would wish to avoid doing soCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CLAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Passage:Last week, the government used the Drug Price Control Order, 2013, to increase the price ceilingfor 21 medicines by as much as 50% to ensure their availability in the market. This is a welcome move because lower prices would have further limited the availability of these drugs, some of which include those used for malaria, leprosy and allergy. The decision by the regulatory authority – usually known to reduce prices of essential drugs – was prompted by repeated petitions by the pharmaceutical industry, which pointed out that the increasing cost of imports had made the production of some of these drugs unviable. Prices of bulk drugs and active pharmaceutical ingredients have, in fact, gone up by up to 88%, and are largely imported. This raises a basic question: Should the government control prices? The motivation for controlling drug prices is not very difficult to understand. Unlike some of the developed countries, where most of the population has insurance coverage or medical facilities are provided by the state, medical expenses in India are borne by citizens, largely through out-of pocket expenses. Therefore, the state intervenes by keeping prices of some drugs in check to contain such spending. However, the unintended consequence is that it affects the supply of drugs and can potentially make citizens worse off. The risk of non-availability was an important reason for raising prices. Although all pharmaceutical companies may not stop producing drugs with price control, they may limit the supply. Further, the government usually dithers on price hike because of political considerations so that it is not accused of favouring private companies. Thus, the government should stay away from dictating prices and allow the market to function. Competition in the marketplace will ensure that no company is able to make extraordinary profits in basic and essential drugs. Since the state has limited resources, it should focus on regulation, and ensure that the quality of drugs supplied in the market is not compromised at any point. Q.The pharmaceutical industry has been asking the government to raise the prices of certain drugs for a long time, but has not received a response. Why, according to the author, could this be?a)The government is indecisive about raising prices for the fear of being accused of favouring private companies.b)Private companies only value profit, and do not pay attention to the quality of medicines they manufacture.c)The government has limited resources, and may not have been able to study the details of the pharmaceutical industry’s demands.d)Since deciding the prices of medicines is not the government’s job, it would wish to avoid doing soCorrect answer is option 'A'. Can you explain this answer?.

Solutions for Passage:Last week, the government used the Drug Price Control Order, 2013, to increase the price ceilingfor 21 medicines by as much as 50% to ensure their availability in the market. This is a welcome move because lower prices would have further limited the availability of these drugs, some of which include those used for malaria, leprosy and allergy. The decision by the regulatory authority – usually known to reduce prices of essential drugs – was prompted by repeated petitions by the pharmaceutical industry, which pointed out that the increasing cost of imports had made the production of some of these drugs unviable. Prices of bulk drugs and active pharmaceutical ingredients have, in fact, gone up by up to 88%, and are largely imported. This raises a basic question: Should the government control prices? The motivation for controlling drug prices is not very difficult to understand. Unlike some of the developed countries, where most of the population has insurance coverage or medical facilities are provided by the state, medical expenses in India are borne by citizens, largely through out-of pocket expenses. Therefore, the state intervenes by keeping prices of some drugs in check to contain such spending. However, the unintended consequence is that it affects the supply of drugs and can potentially make citizens worse off. The risk of non-availability was an important reason for raising prices. Although all pharmaceutical companies may not stop producing drugs with price control, they may limit the supply. Further, the government usually dithers on price hike because of political considerations so that it is not accused of favouring private companies. Thus, the government should stay away from dictating prices and allow the market to function. Competition in the marketplace will ensure that no company is able to make extraordinary profits in basic and essential drugs. Since the state has limited resources, it should focus on regulation, and ensure that the quality of drugs supplied in the market is not compromised at any point. Q.The pharmaceutical industry has been asking the government to raise the prices of certain drugs for a long time, but has not received a response. Why, according to the author, could this be?a)The government is indecisive about raising prices for the fear of being accused of favouring private companies.b)Private companies only value profit, and do not pay attention to the quality of medicines they manufacture.c)The government has limited resources, and may not have been able to study the details of the pharmaceutical industry’s demands.d)Since deciding the prices of medicines is not the government’s job, it would wish to avoid doing soCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.

Here you can find the meaning of Passage:Last week, the government used the Drug Price Control Order, 2013, to increase the price ceilingfor 21 medicines by as much as 50% to ensure their availability in the market. This is a welcome move because lower prices would have further limited the availability of these drugs, some of which include those used for malaria, leprosy and allergy. The decision by the regulatory authority – usually known to reduce prices of essential drugs – was prompted by repeated petitions by the pharmaceutical industry, which pointed out that the increasing cost of imports had made the production of some of these drugs unviable. Prices of bulk drugs and active pharmaceutical ingredients have, in fact, gone up by up to 88%, and are largely imported. This raises a basic question: Should the government control prices? The motivation for controlling drug prices is not very difficult to understand. Unlike some of the developed countries, where most of the population has insurance coverage or medical facilities are provided by the state, medical expenses in India are borne by citizens, largely through out-of pocket expenses. Therefore, the state intervenes by keeping prices of some drugs in check to contain such spending. However, the unintended consequence is that it affects the supply of drugs and can potentially make citizens worse off. The risk of non-availability was an important reason for raising prices. Although all pharmaceutical companies may not stop producing drugs with price control, they may limit the supply. Further, the government usually dithers on price hike because of political considerations so that it is not accused of favouring private companies. Thus, the government should stay away from dictating prices and allow the market to function. Competition in the marketplace will ensure that no company is able to make extraordinary profits in basic and essential drugs. Since the state has limited resources, it should focus on regulation, and ensure that the quality of drugs supplied in the market is not compromised at any point. Q.The pharmaceutical industry has been asking the government to raise the prices of certain drugs for a long time, but has not received a response. Why, according to the author, could this be?a)The government is indecisive about raising prices for the fear of being accused of favouring private companies.b)Private companies only value profit, and do not pay attention to the quality of medicines they manufacture.c)The government has limited resources, and may not have been able to study the details of the pharmaceutical industry’s demands.d)Since deciding the prices of medicines is not the government’s job, it would wish to avoid doing soCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Passage:Last week, the government used the Drug Price Control Order, 2013, to increase the price ceilingfor 21 medicines by as much as 50% to ensure their availability in the market. This is a welcome move because lower prices would have further limited the availability of these drugs, some of which include those used for malaria, leprosy and allergy. The decision by the regulatory authority – usually known to reduce prices of essential drugs – was prompted by repeated petitions by the pharmaceutical industry, which pointed out that the increasing cost of imports had made the production of some of these drugs unviable. Prices of bulk drugs and active pharmaceutical ingredients have, in fact, gone up by up to 88%, and are largely imported. This raises a basic question: Should the government control prices? The motivation for controlling drug prices is not very difficult to understand. Unlike some of the developed countries, where most of the population has insurance coverage or medical facilities are provided by the state, medical expenses in India are borne by citizens, largely through out-of pocket expenses. Therefore, the state intervenes by keeping prices of some drugs in check to contain such spending. However, the unintended consequence is that it affects the supply of drugs and can potentially make citizens worse off. The risk of non-availability was an important reason for raising prices. Although all pharmaceutical companies may not stop producing drugs with price control, they may limit the supply. Further, the government usually dithers on price hike because of political considerations so that it is not accused of favouring private companies. Thus, the government should stay away from dictating prices and allow the market to function. Competition in the marketplace will ensure that no company is able to make extraordinary profits in basic and essential drugs. Since the state has limited resources, it should focus on regulation, and ensure that the quality of drugs supplied in the market is not compromised at any point. Q.The pharmaceutical industry has been asking the government to raise the prices of certain drugs for a long time, but has not received a response. Why, according to the author, could this be?a)The government is indecisive about raising prices for the fear of being accused of favouring private companies.b)Private companies only value profit, and do not pay attention to the quality of medicines they manufacture.c)The government has limited resources, and may not have been able to study the details of the pharmaceutical industry’s demands.d)Since deciding the prices of medicines is not the government’s job, it would wish to avoid doing soCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Passage:Last week, the government used the Drug Price Control Order, 2013, to increase the price ceilingfor 21 medicines by as much as 50% to ensure their availability in the market. This is a welcome move because lower prices would have further limited the availability of these drugs, some of which include those used for malaria, leprosy and allergy. The decision by the regulatory authority – usually known to reduce prices of essential drugs – was prompted by repeated petitions by the pharmaceutical industry, which pointed out that the increasing cost of imports had made the production of some of these drugs unviable. Prices of bulk drugs and active pharmaceutical ingredients have, in fact, gone up by up to 88%, and are largely imported. This raises a basic question: Should the government control prices? The motivation for controlling drug prices is not very difficult to understand. Unlike some of the developed countries, where most of the population has insurance coverage or medical facilities are provided by the state, medical expenses in India are borne by citizens, largely through out-of pocket expenses. Therefore, the state intervenes by keeping prices of some drugs in check to contain such spending. However, the unintended consequence is that it affects the supply of drugs and can potentially make citizens worse off. The risk of non-availability was an important reason for raising prices. Although all pharmaceutical companies may not stop producing drugs with price control, they may limit the supply. Further, the government usually dithers on price hike because of political considerations so that it is not accused of favouring private companies. Thus, the government should stay away from dictating prices and allow the market to function. Competition in the marketplace will ensure that no company is able to make extraordinary profits in basic and essential drugs. Since the state has limited resources, it should focus on regulation, and ensure that the quality of drugs supplied in the market is not compromised at any point. Q.The pharmaceutical industry has been asking the government to raise the prices of certain drugs for a long time, but has not received a response. Why, according to the author, could this be?a)The government is indecisive about raising prices for the fear of being accused of favouring private companies.b)Private companies only value profit, and do not pay attention to the quality of medicines they manufacture.c)The government has limited resources, and may not have been able to study the details of the pharmaceutical industry’s demands.d)Since deciding the prices of medicines is not the government’s job, it would wish to avoid doing soCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Passage:Last week, the government used the Drug Price Control Order, 2013, to increase the price ceilingfor 21 medicines by as much as 50% to ensure their availability in the market. This is a welcome move because lower prices would have further limited the availability of these drugs, some of which include those used for malaria, leprosy and allergy. The decision by the regulatory authority – usually known to reduce prices of essential drugs – was prompted by repeated petitions by the pharmaceutical industry, which pointed out that the increasing cost of imports had made the production of some of these drugs unviable. Prices of bulk drugs and active pharmaceutical ingredients have, in fact, gone up by up to 88%, and are largely imported. This raises a basic question: Should the government control prices? The motivation for controlling drug prices is not very difficult to understand. Unlike some of the developed countries, where most of the population has insurance coverage or medical facilities are provided by the state, medical expenses in India are borne by citizens, largely through out-of pocket expenses. Therefore, the state intervenes by keeping prices of some drugs in check to contain such spending. However, the unintended consequence is that it affects the supply of drugs and can potentially make citizens worse off. The risk of non-availability was an important reason for raising prices. Although all pharmaceutical companies may not stop producing drugs with price control, they may limit the supply. Further, the government usually dithers on price hike because of political considerations so that it is not accused of favouring private companies. Thus, the government should stay away from dictating prices and allow the market to function. Competition in the marketplace will ensure that no company is able to make extraordinary profits in basic and essential drugs. Since the state has limited resources, it should focus on regulation, and ensure that the quality of drugs supplied in the market is not compromised at any point. Q.The pharmaceutical industry has been asking the government to raise the prices of certain drugs for a long time, but has not received a response. Why, according to the author, could this be?a)The government is indecisive about raising prices for the fear of being accused of favouring private companies.b)Private companies only value profit, and do not pay attention to the quality of medicines they manufacture.c)The government has limited resources, and may not have been able to study the details of the pharmaceutical industry’s demands.d)Since deciding the prices of medicines is not the government’s job, it would wish to avoid doing soCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Passage:Last week, the government used the Drug Price Control Order, 2013, to increase the price ceilingfor 21 medicines by as much as 50% to ensure their availability in the market. This is a welcome move because lower prices would have further limited the availability of these drugs, some of which include those used for malaria, leprosy and allergy. The decision by the regulatory authority – usually known to reduce prices of essential drugs – was prompted by repeated petitions by the pharmaceutical industry, which pointed out that the increasing cost of imports had made the production of some of these drugs unviable. Prices of bulk drugs and active pharmaceutical ingredients have, in fact, gone up by up to 88%, and are largely imported. This raises a basic question: Should the government control prices? The motivation for controlling drug prices is not very difficult to understand. Unlike some of the developed countries, where most of the population has insurance coverage or medical facilities are provided by the state, medical expenses in India are borne by citizens, largely through out-of pocket expenses. Therefore, the state intervenes by keeping prices of some drugs in check to contain such spending. However, the unintended consequence is that it affects the supply of drugs and can potentially make citizens worse off. The risk of non-availability was an important reason for raising prices. Although all pharmaceutical companies may not stop producing drugs with price control, they may limit the supply. Further, the government usually dithers on price hike because of political considerations so that it is not accused of favouring private companies. Thus, the government should stay away from dictating prices and allow the market to function. Competition in the marketplace will ensure that no company is able to make extraordinary profits in basic and essential drugs. Since the state has limited resources, it should focus on regulation, and ensure that the quality of drugs supplied in the market is not compromised at any point. Q.The pharmaceutical industry has been asking the government to raise the prices of certain drugs for a long time, but has not received a response. Why, according to the author, could this be?a)The government is indecisive about raising prices for the fear of being accused of favouring private companies.b)Private companies only value profit, and do not pay attention to the quality of medicines they manufacture.c)The government has limited resources, and may not have been able to study the details of the pharmaceutical industry’s demands.d)Since deciding the prices of medicines is not the government’s job, it would wish to avoid doing soCorrect answer is option 'A'. 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