Question
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)_______.
The correct answer is
(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.
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Important Questions from Economy
- At the time of independence, which sector contributed the largest share to India's national income?
- Which of the following is an example of soft infrastructure?
- Which of the following statements regarding the estimation of India's national and per capita income during the colonial rule is correct?
What was one of the major characteristics of India's economy at the time of independence in 1947?
- The Fiscal Responsibility and Budget Management (FRBM) Act set limits on the fiscal deficit and public debt. What was the fiscal deficit target under the original FRBM Act by 2008-09?
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