On which of the following goods or services would the imposition of a government subsidy most likely result in more efficient allocation of our nation's resources?

Question

Quizplus · Accepted Answer

Scientific research is a pure public good that has positive externalities, meaning the benefits spill over to society as a whole. Private investors may not invest enough in scientific research because they may not be able to capture all the benefits of their investments. Therefore, government subsidies for scientific research would lead to a more efficient allocation of resources.

On Which of the Following Goods or Services Would the Imposition