Question

​Medical research helps to develop better treatments for neuromuscular disease. Medical researchers are constantly in search of funds. Many in the public, however, are unwilling to contribute money toward neuromuscular disease research until a member of their own family suffers from a neuromuscular ailment. If left strictly to the private market, it is likely that there will be:(A) an efficient quantity of resources devoted to neuromuscular disease research.(B) an under allocation of resources to neuromuscular disease research, relative to the efficient level.(C) an overallocation of resources to neuromuscular disease research, relative to the efficient level.(D) an efficient quantity of resources devoted to neuromuscular disease research.

Answer 1

Answer:

(B) an under allocation of resources to neuromuscular disease research, relative to the efficient level.

Explanation:

Based on this passage, we can assume that the public in general is not interested in neuromuscular disease. If this is the case, this subject is unlikely to create much profit (and thus interest) for the private sector. If medical research in this area were left exclusively to the private market, it is likely that there would be an under allocation of resources to neuromuscular disease research, relative to the efficient level.