Medical Research Is Often Presented as an Example of a Positive

question 105

Multiple Choice

Medical research is often presented as an example of a positive externality.Which of the following options available to policymakers would encourage producers of medical knowledge to provide a socially optimal level of production?
(i) imposing price ceilings on selected medical procedures
(ii) placing taxes on the sale of prescription drugs
(iii) providing subsidies to these firms

• A)(i), (ii) and (iii)
• B)(i) and (ii) only
• C)(iii) only
• D)none of the above

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Definitions:

Trailer

A transport vehicle without a motor, designed to be towed by another vehicle.

Tractor

A heavy-duty highway truck designed for towing trailers. Also any of a number of different types of farm and heavy equipment utility vehicles.

Tandem Axle

A pair of axles situated close together in a vehicle to support more weight than a single axle and improve stability.

Wheel Base

The distance between the centers of the front and rear wheels of a vehicle, influencing stability, handling, and ride comfort.