The Economic Justification for Public Subsidies to University Research Is

question 179

Multiple Choice

The economic justification for public subsidies to university research is based on

• A)the value of this research to the university.
• B)the higher salaries graduate students earn as a result of working with professors involved in research.
• C)the external benefits of research and development to, in particular, high rates of economic growth.
• D)higher incomes earned by those who provide services to university researchers (equipment, supplies, etc.).

---

Definitions:

Variable Cost

Costs that vary directly with the level of production or service delivery, such as materials and labor costs.

Tapioca Pudding

A sweet dessert made from tapioca pearls, milk or cream, sugar, and often flavored with vanilla, coconut, or other ingredients.

Opportunity Cost

is the value of the best alternative that is forgone in making any choice or decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Explicit Cost

The direct, out-of-pocket expenses incurred by a company or individual, contrasting with implicit costs which represent opportunity costs.