As with Many Public Goods, Determining the Appropriate Level of Government

question 336

Multiple Choice

As with many public goods, determining the appropriate level of government support for the production of general knowledge is difficult because

• A)patents correct for an unknown portion of the externality.
• B)benefits are hard to measure.
• C)members of Congress are often experts in the sciences.
• D)the costs always exceed the benefits.

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Definitions:

Rummage Sale

A sale event, often organized by a community or organization, where used goods are sold, typically to raise funds.

Current GDP

The market value of all final goods and services produced within a country in a given period, measured without adjusting for inflation.

Inventory

The sum of all goods and materials held by a company in stock, including raw materials, work-in-progress, and finished goods.

Investment Expenditures

Spending on capital goods by firms and households which will be used for future production of goods and services.