Which of the following
statements is (are) correct?
(x) The U.S. patent system provides property rights protection for
individuals who pursue research and, as a result, makes technical
knowledge excludable.
(y) Government subsidizes basic research because the social benefit
of additional knowledge is perceived to be greater than the cost of
subsidies.
(z) Government agencies subsidize basic research because the
private market devotes too few resources to basic research. Too few
resources are devoted to the creation of knowledge because profit
seeking firms tend to free-ride on the knowledge that others have
developed.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (z) only
According to the
textbook, which of the following statements is (are) correct?
(x) Studies from the early 2000s suggest that the value of a human
life is about $10 million.
(y) Although studies provide a calculated value of a typical
person, the given value of an economist is always higher because
only an economist is able to generate sound economic policy.
(z) When the value of a human life is calculated according to the
economic contribution a person makes to society (as reflected in
their income-earning potential) it is likely to lead to the bizarre
implication that it is possible for a retired or disabled person to
have no value to society.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (z) only
Hi! Welcome to Chegg!
Due to presence of Chegg policy, I am answering one question.
1.
Ans: (B). (X) and (Y) only.
(x) The U.S. patent system provides property rights protection
for individuals who pursue research and, as a result, makes
technical knowledge excludable.
(y) Government subsidizes basic research because the social benefit
of additional knowledge is perceived to be greater than the cost of
subsidies.
Reason: Problem described in statement (Z) requires allocation of property rights, not just subsidy to correct it.
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