Question

The Food and Drug Administration​ (FDA) is part of federal​ government's Department of Health and Human Services. Among its other​ functions, the FDA evaluates the safety and effectiveness of drugs and medical devices. FDA approval had to be granted before OraSure was allowed to market its home HIV test. In a centrally planned​ economy, the government decides how resources will be allocated. In a market​ economy, the decisions of households and firms interacting in markets allocate resources.The regulation of the production and sale of drugs and medical devices in the United States is an example of how resources are allocated in aA. centrally planned economy because the government controls whether the drug can be used.B. centrally planned economy because the FDA is part of the government and this involves central planning.C. market economy because the FDA is made up of elected officials.D. market economy because the drug​ development, and the resources allocated to the​ development, occurs in the market.

Answer 1

Answer:

The correct answer is option D. "market economy because the drug​ development, and the resources allocated to the​ development, occurs in the market".

Explanation:

The Federal government of the United States follows a a free market economy, at which everything is reigned following a supply and demand approach as long as it follows government regulations. This is the case for the development of new drugs and medical tests such as OraSure. The drug​ development, and the resources allocated to the​ development, occurs in the market with previous approval of FDA, the agency that determines if the drug is safe for the people.