Evaluate this statement “We should reduce federal spending on research and development today. Those federal dollars are better spent by helping the poor.”
What will be an ideal response?
The percentage of research and development spending by the federal government has decreased significantly since the 1960. This decrease has been attributed to the increase in spending of current consumption programs like Social Security, Medicare and Medicaid, and Defense. Some economists argue that research and development is a public good, with significant positive externalizes and the government should heavily subsidize its production. These economists argue that spending on R&D increases productivity, income, and tax revenue in the future, which can allow for more future money for Social Security, Medicare, and/or Defense.
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As the stock of capital grows, there will typically be ________ depreciation
A) less B) more C) the same amount of D) no
Suppose the cost curves in the above figure apply to all firms in the market. Then, if the initial price is P1, in the long run the market
A) demand will increase. B) demand will decrease. C) supply will increase. D) supply will decrease.
The difference between the marginal expenditure and the wage is greater when the supply curve of labor is
A) less elastic at the monopsony optimum. B) more elastic at the monopsony optimum. C) more elastic than the demand curve. D) The difference does not depend on any elasticity.
For a given level of output, the short-run total cost of production
a. always falls below the long-run total cost of production b. always exceeds the long-run total cost of production c. always equals the long-run total cost of production d. may exceed or equal the long-run total cost of production e. may exceed or fall below the long-run total cost of production