If the Government Determines That the Private Sector Does Not

question 75

Multiple Choice

If the government determines that the private sector does not have sufficient incentive to carry out research and development, which of the following is likely to be a reasonable response?

• A) government can use public funds to pay for the R&D activities directly.
• B) setting up government-run laboratories to ensure public benefits arise from public funding.
• C) direct all public R&D funding to colleges and universities to ensure public benefits arise from public funding.
• D) ensure that firms are not entering cooperative ventures to lessen competition, as well as b and c above.

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