In August 2015, Turing Pharmaceuticals bought the rights to a 62-year-old standard drug for people with a life-threatening infection; at that time, it sold at $13.50 a tablet. Overnight, the company increased the price to $750 a tablet. For some patients, this would result in an annual cost of hundreds of thousands of dollars. CEO Martin Shkreli said the company was pursuing a price strategy to maximize its profits. Some individuals claim that at $750 a tablet, those affected would not be able to afford the drug. They and their doctors would be forced to use a less expensive, but also less effective, alternative drug.14 

Critical Thinking Questions

1.Should government regulate the pricing of pharmaceutical drugs?

a.Yes: Government should regulate the pricing of pharmaceutical drugs.

b.No: Pharmaceutical companies should be allowed discretion to set their own price for their products and make a profit.

2.Why is this the right option to choose?

3.What are the ethics underlying your decision?

Scenario 2 Fake News Threats to a Business

During the 2016 presidential campaign, fake news stories about candidates appeared on the Internet. These fraudulent stories were then forwarded among people as real news stories through websites and social media, such as Facebook and Twitter. One fake news story reported that Hillary Clinton was the leader of a child-trafficking pedophilia ring headquartered at Comet Ping Pong pizzeria, a real business in Washington, D.C.46 Several days later, someone believing the fake news story to be authentic walked into the pizzeria and fired a rifle.

Critical Thinking Questions

1.If you owned the Comet Ping Pong pizzeria, what would you do?

a.Refute the fake news stories, and hope the issue goes away before it further harms your business or scares your employees and customers

b.Close the business and reopen under a new name

c.Something else (if so, what?)

2.Why is this the right option to choose?

3.What are the ethics underlying your decision?

Scenario 3 $15 Minimum Wage

In 2017, the federal hourly minimum wage was $7.25. In 2015, the National Low Income Housing Coalition determined that $15 an hour was necessary for a full-time (40 hours a week) employee to maintain a normal standard of living. Several cities have passed ordinances to gradually increase the legal minimum wage to $15 an hour. Some individuals claim that if businesses were required to pay a $15 an hour minimum wage, many could only maintain economic viability by raising consumer prices and hiring fewer people.

Critical Thinking Questions

1.Should the federal minimum wage be gradually increased over several years to $15 an hour?

a.Yes: The minimum wage should be gradually increased to $15 an hour.

b.No: The minimum wage should not be increased to $15 an hour.

2.Why is this the right option to choose?

3.What are the ethics underlying your decision?

Scenario 4 Generic Drugs

Generic drugs enter the market after an original drug patent expires. They account for more than 80 percent of all prescriptions sold in the United States, and their lower prices save consumers and taxpayers billions of dollars. In the pharmaceutical industry, executives of competing companies regularly invite each other to diners and social events at industry gatherings. Some generic pharmaceutical company executives, before selling a new generic drug, meet with rivals in hopes of reaching an agreement to artificially inflate prices, rather than competing against each other on price, to ensure profitability.

Critical Thinking Questions

1.If you were a generic drug company executive, what would you do if approached by a competing generic drug company executive about reaching an agreement on a high price for a generic drug both companies would be selling?

a.Agree to sell the drug at similar inflated prices and earn higher profits

b.Reject the offer and compete on price

c.Inform federal authorities

d.Something else (if so, what?)

2.Why is this the right option to choose?

3.What are the ethics underlying your decision?

Answer rating: 100% (QA)

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