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:

Rigorous Training

Intensive and strict training designed to achieve high levels of performance, skill, or knowledge.

Neatness

The quality of being clean, tidy, and orderly.

Decoding Emotions

The process of interpreting and understanding the emotional expression of others.

Sex Difference

Biological and physiological distinctions between males and females, often in the context of reproductive functions.