It Should Not Be Surprising If the Public Sector Fails

question 60

Multiple Choice

It should not be surprising if the public sector fails to pay for the right amount or right kinds of basic research because

• A)basic research is not a public good.
• B)the benefits of basic research are hard to measure.
• C)members of Congress usually have little expertise in science.
• D)Both b and c are correct.

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Definitions:

Total Output

The aggregate quantity of goods or services produced by an economy, sector, or firm within a given period.

Specialize

Focus on a specific area of expertise or production to achieve greater efficiency.

Production Possibilities

A curve representing all possible combinations of maximum outputs that could be produced with a fixed amount of resources.

Consumption Possibilities

The range of goods and services that can be consumed given a consumer's income and prices.