Asked by DELINA FILLI on May 19, 2024
Verified
Government agencies, such as the National Science Foundation, subsidize basic research because in the absence of a subsidy too little research would be conducted.
Subsidize
Financial support given by the government or another organization to reduce the cost of goods, services, or activities, often to encourage development or consumption.
Basic Research
Investigative study aimed at gaining a deeper and theoretical understanding of fundamental principles without immediate commercial objectives.
- Comprehend the role of government in subsidizing research and providing public goods due to market failure.
Verified Answer
KP
Kristy PisfilMay 22, 2024
Final Answer :
True
Explanation :
Basic research often does not have immediate commercial applications, leading to underinvestment by the private sector. Government subsidies help fill this gap, ensuring that socially valuable knowledge is developed.
Learning Objectives
- Comprehend the role of government in subsidizing research and providing public goods due to market failure.
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