chapter 13

the positive externalities of education are always reflected in general society. which of the following is not an example of a positive externality of education?

a higher income for a person who received a college degree from harvard

which of the following best describes the term public good?

a product that is difficult for market producers to sell to individual consumers because it is non-excludable and non-rivalrous

which of the following is an example of a non-rivalrous group?

a public swimming pool

which of the following is an example of how a government can help pay for a public good?

all

which of the following is not an example of a free rider problem?

an individual using a highway that charges tolls

what is the meaning of the phrase tragedy of the commons?

because no one owns common resources, there is no incentive for individuals to protect or harvest them responsibly, leading to over harvesting

when a hypothetical company's R&D project is successful, then

competitors may find a way to adapt and copy the underlying idea without incurring R&D costs

which of the following statements about cooperation between government-funded universities, academies, and the private sector is true?

cooperation between government funded...can both spur product innovation and create a whole new industries

Ideally, a patent should cover a long enough period of time for the inventor to _______________, but that period should not be so long that it allows the inventor to _____________________________.

earn a hearty return; charge a high monopoly price permanently

all of the following statements are true about the positive externalities of education, except:

education has an excellent private rate of return for the individual but there are only two or three positive externalities of education

based on what you've learned about public goods, which of the following least meets the criteria to be considered a public good?

food

if a firm's efforts to be technologically innovative will create a positive externality, then that firm will likely

have less incentive to innovate to the extent that the whole of society desires

all of the following are considered non-excludable goods, except:

higher education

which of the following is considered a private rate of return on education?

higher wages

Some studies done by economists have found that the original inventor receives _________________________________________________ from innovations, while other businesses and new product users receive the rest of the benefit.

one-third to one-half of the total economic benefits

all of the following illustrate potential shortcoming of using patents to promote innovation, except:

patents don't allow for the inventor to earn a good return on an invention

_ give the inventor the exclusive legal right to make, use, or sell the invention for a limited time, while _ give the author an exclusive legal right over works of literature, music, film/video, and pictures.

patents, copyright laws

when a company allocated funds in new technology and innovations, then:

positive externalities arise

For a positive externality, _________________________ than the social benefits.

private benefits of an action are less

When a firm invests in new technology, the ________________ that the firm receives are _____________________________ .

private benefits; only a portion of the overall social benefits

which of the following best describe the estimated returns on education that go primarily to the individual worker?

private rates of return

the following are all examples of the tragedy of the commons, except:

solar panel incentive programs

which of the following is not an example of something economists might advocate in response to a tragedy of the commons scenario to overfishing in a particular lake?

subsidies for fisheries

What is intellectual property?

the body of law that includes patents, trademarks, copyrights, and trade secret law

when many people decide to act as free riders, then:

the publuc good many never be provided

all of the following statements about the research and experimentation (R&E) tax credit are true, except:

the r&e tax credit allows the government to have close scrutiny of specific research and development projects

one difficulty with direct government support of R&D is that it inevitably involves government decisions about

which of the vast number of proposed projects are worthwhile