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:

Industrialization

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods.

Immigrants

Individuals who move from one country to another with the intention of settling in the new country, often in search of better living conditions or employment opportunities.

Allophones

Individuals whose first language is neither English nor French, referring to the linguistic diversity in countries like Canada.

Postsecondary Education

Education that occurs after high school, including programs at colleges, universities, and vocational schools.