Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 11 - Part IV - Public Goods and Common Resources - Problems and Applications - Page 230: 6

Answer

a) Research is neither excludable nor having a rival in consumption. b) The U.S. subsidizes basic research. c) This is consistent with the classification of a public good.

Work Step by Step

a) Since research is a public good, there are free riders (people who do not pay for the research) who will use the information.
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