One Difference Between a Policy of Direct Spending by the Government

question 10

Multiple Choice

One difference between a policy of direct spending by the government on research and development and an alternative policy of tax incentives to encourage private spending on R&D is ________.

• A)the former improves the productivity of R&D,while the latter raises its level
• B)the former requires a decrease in national saving,while the latter causes an increase
• C)the former raises the level of R&D spending,while the latter also improves its productivity
• D)the former requires an increase in national saving,while the latter causes a decrease

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Definitions:

Expected Times

Probabilistic estimates of the time durations in which certain events are anticipated to occur.

Chi-Square Test

A statistical test used to examine the differences between categorical variables in a contingency table.

Right-Tailed

Refers to a type of hypothesis test where the area of interest is in the right tail of the probability distribution, usually testing for values greater than a certain number.

Uniformly Distributed

A statistical distribution where all outcomes are equally likely; each variable has the same probability.