Question

Concern about terrorists using biological warfare has caused the U.S. government to create stockpiles of specific drugs. The federal government has purchased Cipro, the only drug specifically approved by the FDA to treat inhaled anthrax, from Bayer, the German drug and chemical company. The U.S. government has also purchased smallpox vaccine from Acambis, a British drug company. These transactions are examples of: Group of answer choices market elasticity principles. the circular flow of products. organizational clusters. reciprocity. global organizational markets.

Answer 1

Answer: Global organizational markets.

Explanation:

In Organizational markets, the main participants are huge trading Institutions such as Governments or large Corporations. In Organizational markets, the participants may be few but the transactions can have a lot of Quantity i.e a government can buy a huge order from one company.

The goods sold here can be highly specialized and made for few buyers and so is not for personal Consumption.

The US buying a drug for anthrax which is a rare disease but can be weaponized shows that this is a specific purchase therefore it is more likely to be a purchase on the Global Organizational Market.