The presumption that costly new knowledge would be undersupplied by the private sector is based on the essential characteristic of new knowledge. It is (A)_________ and (B)_______.
(A) Non-rivalous (B) Non-excludable
The public-good argument treats new knowledge as non-rivalrous and non-excludable: one person’s use need not reduce another’s use, and others may benefit without paying. Private innovators therefore cannot capture all social benefits and may invest too little. Patents and other protections can create partial excludability.
Important Questions from Economy
When goods are produced by exploiting natural resources, it is an activity associated with:
A system in which local farmers were allowed to cultivate temporarily within a plantation is known as:
Which goods from India dominated the international textile markets before the age of mechanized industries?
Which type of farming is practiced in areas of high population pressure on land?
The major economic attribute for comparing countries is their:
