Which of the Following Is Not a Reason Why Government

question 102

Multiple Choice

Which of the following is not a reason why government agencies subsidize basic research?

• A)The private market devotes too few resources to basic research.
• B)The general knowledge developed through basic research can be used without charge.
• C)The social benefit of additional knowledge is perceived to be greater than the cost of the subsidies.
• D)The government wants to attract the brightest researchers away from private research firms.

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Definitions:

Total Liabilities

The sum of all financial obligations a company owes to outside parties, including debts and other financial commitments.

Shareholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities; also known as stockholders' equity.

Equity Multiplier

A financial leverage ratio that measures the portion of a firm's assets that is financed by stockholder's equity.

Profit Margin

A financial ratio that shows the percentage of revenue that remains as profit after all expenses have been paid, including costs, taxes, and interest.