Question

Which of the following is true about general knowledge?___________

A. It is considered a common resource.

B. It is considered a public good.

C. It is considered a club good.

D. It is considered a private good.

As a result, private firms (WOULD OR WOULD NOT ) undertake the efficient amount of basic scientific research.

Which of the following policies has the United States adopted in response to this problem? Check all that apply.

_______Subsidizing research through the National Institutes of Health

_______A progressive income tax

_______Taxing revenue from the National Science Foundation

It is often argued that this policy increases the technological capability of American producers relative to that of foreign firms.

True or False: This argument is correct only if the knowledge provided by basic research is not excludable.

True

False

Answer 1

1.

The following is true about general knowledge:

B. It is considered a public good.

This is because, general knowledge is non excludable and non rival good. The reason is, no one can exclude you from using general knowledge and while using your knowledge, no one can reduce the amount of general knowledge you knew.

2.

As a result, private firms WOULD NOT undertake the efficient amount of basic scientific research.

3.

The following policies has the United States adopted in response to this problem:

Subsidizing research through the National Institutes of Health.

4.

It is often argued that this policy increases the technological capability of American producers relative to that of foreign firms.

The statement "This argument is correct only if the knowledge provided by basic research is not excludable" is false.

Because, the argument mentioned above is only correct when the knowledge provided by basic research is excludable.