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:

Gossip

Informal or idle talk about others, typically involving details that are not confirmed as being true.

Grapevine

An informal communication channel within an organization, where information is spread through personal contacts and conversations rather than through official means.

Power And Influence

The capacity or ability of a person or group to direct or affect the behavior of others or the course of events.

Pent-up Emotions

Refers to feelings that have been repressed or not expressed for a long period, which could potentially lead to psychological stress or emotional outbursts.