Suppose scientific research generates external benefits. Without government intervention, the market for scientific research would
A) produce the efficient amount.
B) produce more than the efficient amount.
C) produce some research, but less than the efficient amount.
D) produce zero research.
E) either produce more than or less than the efficient amount depending on whether the external benefit is on the production or consumption of the research.
C
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The account that records a nation's foreign economic transactions is called the
a. trade account. b. T account. c. exchange market. d. balance of payments.
A monopsonist purchaser of labor that could negotiate a different wage for each worker could
A) purchase less labor than a regular monopsonist. B) purchase more labor than a regular monopsonist. C) rotate the marginal expenditure curve to the left. D) shift the marginal expenditure curve to the left.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
Prices for industrial commodities such as steel rods or machine tools are:
A. heavy prices. B. sticky prices. C. auction prices. D. custom prices.