The Private Return from Research and Development Might Be Less

question 31

Multiple Choice

The private return from research and development might be less than the social return because:

• A)others than just the inventor can use inventions that come out of research and development.
• B)it is encouraged by patents and copyrights.
• C)it is funded by the government.
• D)all of the above.

---

Definitions:

Preferred Stock

A class of ownership in a corporation with a fixed dividend that must be paid out before dividends to common stockholders, and with generally no voting rights.

Callable

Describes a financial security that the issuer has the right to redeem or 'call back' before its maturity date, often at a predetermined price.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, typically with dividend payments that are prioritized over those of common stock.

Stock Listing

The inclusion of a company's shares on a stock exchange where they can be bought and sold by investors.