Answer to Question #190253 in Macroeconomics for James

Question

QUESTION 16

A problem with direct government support of research and development is:

1. That the U.S. Constitution strictly prohibits it.
2. That the U.S. Constitution requires it in all cases.
3. That it is unconstitutional.
4. That it involves only private decision-making.
5. That it involves political decisions about which projects are worthy.

QUESTION 17

Government policies can increase the incentives to innovate, such as:

1. Government assistance with the costs of R&D.
2. Guaranteeing intellectual property rights.
3. Cooperative research ventures between universities and companies.
4. All of the above.
5. None of the above.

QUESTION 18

The appropriate public policy response to a positive externality is to:

1. Punish those creating externalities.
2. Educate those creating externalities.
3. Help the party creating positive externalities receive a greater share of the social benefits.
4. Force the party creating positive externalities to pay a greater share of the social costs.
5. Alfalfa grows in the field.

Answer 1

16.That it involves only private decision-making

17.All of the above

18.Help the party creating positive externalities receive a greater share of the social benefits.