Question

hich of the following is not a reason why government agencies subsidize basic research? a. The private market devotes too few resources to basic research. b. The social benefit of additional knowledge is perceived to be greater than the cost of the subsidies. c. The government wants to attract the brightest researchers away from private research firms. d. The general knowledge developed through basic research can be used without charge.

Answer 1

C) The government wants to attract the brightest researchers away from private research firms.

Step-by-step explanation:

The greatest factor that fosters sustained long term economic growth is an increase in productivity. Productivity generally increases by increasing labor factor, e.g. more and better education and training, more capital invested, e.g. more factories, equipment, etc., and technological innovation. Technological innovation has fostered American growth during the last decades and it is only possible through research. Technological innovation doesn't only include computers, software and the internet, they also advances in medicine, crop science, and others.

Sometimes innovations come from private companies, e.g. computers, but other times innovation comes from government entities, e.g. internet. The US military and the NASA have contributed with thousands of different innovations and inventions that helped the country and made it grow economically.

Answer 2

c. The government wants to attract the brightest researchers away from private research firms

Step-by-step explanation:

Research is one of the activities that generates postive externality.

Positive externality is when the benefits of economic activities to third parties exceeds the costs.

Activities that generates postive are usually underproduced because of the high cost associated with it. In order to encourage production, the government usually grants subsidies.

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