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The devices the government can use to achieve a more efficient allocation of resources in the presence of external benefits include all of the following except

A) intellectual property rights.
B) subsidies.
C) public production.
D) marketable permits.
E) patents.

1 Answer

5 votes

Final answer:

While the government employs various tools for resource allocation, patents are aimed at increasing incentives for innovation rather than directly affecting resource allocation.

Step-by-step explanation:

The devices the government can use to achieve a more efficient allocation of resources in the presence of external benefits include subsidies, public production, and marketable permits. However, intellectual property rights, such as patents, are mainly used to increase the incentives to innovate and do not directly contribute to the allocation of resources in the way the other tools do. Thus, 'patents' is the correct answer to the question which is the exception among the given options.

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