Question

As with many public goods, determining the appropriate level of government support for the production of general knowledge is difficult because A. patents correct for an unknown portion of the externality. B. members of Congress are often experts in the sciences. C. the costs always exceed the benefits. D. benefits are hard to measure. Save and Continue

Answer 1

Answer: D. Benefits are hard to measure.

Explanation: Public Provision is the provision that is financed through the budget and can be used without any direct payment is called public provision. Public provision can be obtained without any direct payment. Public Production: When goods are produced directly by the government is called public production.

Other public goods problems can be solved by defining individual property rights in the appropriate economic resource. Cleaning up a polluted lake, for instance, involves a free-rider problem if no one owns the lake. The benefits of a clean lake are enjoyed by many people, and no one can be charged for these benefits.