The Economic Justification for Public Subsidies to University Research Is

question 179

Multiple Choice

The economic justification for public subsidies to university research is based on

• A)the value of this research to the university.
• B)the higher salaries graduate students earn as a result of working with professors involved in research.
• C)the external benefits of research and development to, in particular, high rates of economic growth.
• D)higher incomes earned by those who provide services to university researchers (equipment, supplies, etc.).

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Definitions:

Expected Monetary Values

A financial analysis method used to anticipate the potential financial results by assessing the varied possible outcomes and the likelihood of each occurring, considering their impact on overall financial performance.

Expected Value

The anticipated value of a variable, computed as an average of all possible values weighted by their probabilities.

Expected Monetary Value

A calculation used in decision-making to determine the average outcome when the future includes scenarios that may or may not happen.

Analytic Decision Making

The process of making choices by systematically analyzing information, evaluating alternatives, and basing decisions on rational evidence.