University Researchers Create a Positive Externality Because What They Discover

question 168

Multiple Choice

University researchers create a positive externality because what they discover in their research labs can easily be learned by others who haven't contributed to the research costs. What could the federal government do to equate the equilibrium quantity of university research and the socially optimal quantity of university research produced?

• A)tax university researchers
• B)offer grants to university researchers
• C)eliminate subsidized student loans
• D)nothing

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Definitions:

Antigens

Substances that the immune system recognizes as foreign, triggering an immune response.

Allergens

Substances that can cause an allergic reaction in some individuals.

Social Readjustment Rating Scale

A scale measuring the stress load individuals carry, based on major life changes.

Numerical Values

Values expressed in numbers, representing quantities, measurements, or statistics in various contexts.