University Researchers Create a Positive Externality Because What They Discover

question 168

Multiple Choice

University researchers create a positive externality because what they discover in their research labs can easily be learned by others who haven't contributed to the research costs. What could the federal government do to equate the equilibrium quantity of university research and the socially optimal quantity of university research produced?

• A)tax university researchers
• B)offer grants to university researchers
• C)eliminate subsidized student loans
• D)nothing

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Definitions:

Empathy

The ability to understand and share the feelings of another, fostering a sense of connection and compassion.

Verbal Response

An oral or written answer or reaction to a question, situation, or stimulus.

Clarification

The process of making something clearer or easier to understand, often by providing more details or information.

Paraphrasing

A technique of restating another's message or content in one's own words, commonly used to demonstrate understanding or to provide clarity.