Comprehension
Study the passage below and answer the questions.
Apprehensive that pharma companies may stop or reduce production of essential drugs after they come under price control, the Government is mulling steps to ensure that companies maintain present levels of output of these critical drugs. Sources said the recent decision to put a price cap 348 drugs was accompanied by a concern that the manufactures could lose interest in these medicines owing to reduced margins of profit. It was based on the past experience when the drug price control was first enacted. The Group of Ministers (GoM) that took the landmark decision directed the Department of Pharmaceutical to ensure that present production levels were maintained after the price control. As a follow-up, sources said, the Government could fix mandatory level of production in these drugs for each company in business. The fear over companies retaliating with decrease production revolves around the fact the price control would check profit margins. Once the essential medicines are brought under the Drug Price Control Order, they cannot be sold at a price highter than that fixed by the Government. A senior official said, "We will ensure that accessibility and availability of essential drugs does not go down". The GoM has also decided that the prices of medicines, which are part of the price control order of 1995 but not in the National List of Essential Medicines 2011, would be frozen for a year and thereafter a maximum increase of 10% per annum would be permitted. Out of the 348 medicines, the prices of 37 drugs are controlled by the National Pharmaceutical Pricing Authority (NPPA). The Government, through the NPPA, controls prices of 74 bulk drugs and their formulations.
Apprehensive that pharma companies may stop or reduce production of essential drugs after they come under price control, the Government is mulling steps to ensure that companies maintain present levels of output of these critical drugs. Sources said the recent decision to put a price cap 348 drugs was accompanied by a concern that the manufactures could lose interest in these medicines owing to reduced margins of profit. It was based on the past experience when the drug price control was first enacted. The Group of Ministers (GoM) that took the landmark decision directed the Department of Pharmaceutical to ensure that present production levels were maintained after the price control. As a follow-up, sources said, the Government could fix mandatory level of production in these drugs for each company in business. The fear over companies retaliating with decrease production revolves around the fact the price control would check profit margins. Once the essential medicines are brought under the Drug Price Control Order, they cannot be sold at a price highter than that fixed by the Government. A senior official said, "We will ensure that accessibility and availability of essential drugs does not go down". The GoM has also decided that the prices of medicines, which are part of the price control order of 1995 but not in the National List of Essential Medicines 2011, would be frozen for a year and thereafter a maximum increase of 10% per annum would be permitted. Out of the 348 medicines, the prices of 37 drugs are controlled by the National Pharmaceutical Pricing Authority (NPPA). The Government, through the NPPA, controls prices of 74 bulk drugs and their formulations.
Question: 1
Which of the following is not outlined in the passage as a possible retaliatory measure of the pharma companies?
A. Altogether stopping production of the 348 essential drugs put under price control.
B. Reducing production of non essential drugs.
C. Strive to get the 348 drugs out of the list of essential drugs.
Which of the following is not outlined in the passage as a possible retaliatory measure of the pharma companies?
A. Altogether stopping production of the 348 essential drugs put under price control.
B. Reducing production of non essential drugs.
C. Strive to get the 348 drugs out of the list of essential drugs.
A. Altogether stopping production of the 348 essential drugs put under price control.
B. Reducing production of non essential drugs.
C. Strive to get the 348 drugs out of the list of essential drugs.
Updated On: Sep 26, 2024
- A & B
- B & C
- A & C
- A, B & C
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The Correct Option is D
Solution and Explanation
A. (altogether stopping production of the 348 essential drugs) is a concern mentioned in the passage regarding potential retaliatory measures.
B. (reducing production of non-essential drugs) is not specifically mentioned in the passage as a retaliatory measure.
C. (strive to get the 348 drugs out of the list of essential drugs) is also not explicitly outlined as a potential action.The correct option is (D): A, B & C
B. (reducing production of non-essential drugs) is not specifically mentioned in the passage as a retaliatory measure.
C. (strive to get the 348 drugs out of the list of essential drugs) is also not explicitly outlined as a potential action.The correct option is (D): A, B & C
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Question: 2
It is implied in the passage that
It is implied in the passage that
Updated On: Sep 26, 2024
- mandatory levels of production of essential drugs had hitherto never been in existence India
- Government control on drugs prices would directly affect their profit margins
- Both a and b
- Neither a nor b
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The Correct Option is C
Solution and Explanation
A. is implied in the passage, as it discusses the government's new measures to ensure production levels, suggesting that such mandatory levels were not previously enforced.
B. is also implied, as the passage mentions concerns about reduced profit margins due to price control, indicating that government control on drug prices will indeed affect profits.The correct option is (C): Both a and b
B. is also implied, as the passage mentions concerns about reduced profit margins due to price control, indicating that government control on drug prices will indeed affect profits.The correct option is (C): Both a and b
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Question: 3
Which of the following is/ are the outcome(s) of the enactment of Drugs Price Control Order?
Which of the following is/ are the outcome(s) of the enactment of Drugs Price Control Order?
Updated On: Sep 26, 2024
- The Government has also decided to take up widespread distribution of essential drugs.
- There is widespread resentment against this law; chiefly by the drug manufacturers
- The Department of Pharmaceutical has been formed to ensure proper implementation of the price control mechanism
- None of these
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The Correct Option is D
Solution and Explanation
A. is not mentioned in the passage as an outcome of the enactment of the Drug Price Control Order.
B. is also not explicitly stated in the passage; while there may be concerns, the passage does not mention widespread resentment.
C. is not indicated; the passage refers to the GoM directing the Department of Pharmaceutical but does not say it was formed as a result of the price control order.The correct option is (D): None of these
B. is also not explicitly stated in the passage; while there may be concerns, the passage does not mention widespread resentment.
C. is not indicated; the passage refers to the GoM directing the Department of Pharmaceutical but does not say it was formed as a result of the price control order.The correct option is (D): None of these
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Question: 4
In India the government fixes the prices of
In India the government fixes the prices of
Updated On: Sep 26, 2024
- all medicines
- essential drugs only
- bulk drugs only
- None of these
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The Correct Option is B
Solution and Explanation
essential drugs only. The passage discusses the government's focus on controlling the prices of essential medicines specifically, rather than all medicines or bulk drugs.The correct option is (B): essential drugs only
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