a. List two products with which you have become familiar as a result of Direct-to-consumer (DTC) advertising for prescription drugs. DTC advertising has been criticized for possibly misleading patients and for increasing spending on drugs. Discuss the benefits and costs of DTC advertising.

b. What are economists referring to when they talk about barriers to entry? Describe two potential barriers in the pharmaceutical industry. What are the direct consequences of each barrier?

c. Media reports often show much higher drug prices in the United States than in other countries. Analyses by economists often show that the price differential is not as large. Describe two possible problems in comparing domestic with foreign drug prices.

d. The pharmaceutical industry has been subject to considerable regulation in bringing drugs to the marketplace. Discuss the benefits and costs to society of the current approach, perhaps using a particular example to illustrate your point.