Economists believe that the free market will tend to under-provide resources for acquisition of new technical knowledge.

Question

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Economists believe that the free market may not provide sufficient incentives for businesses to invest in the long-term acquisition of new technical knowledge, which can have spillover effects that benefit society as a whole. As a result, they may advocate for government policies such as research grants or patent protection to encourage innovation.

Economists Believe That the Free Market Will Tend to Under-Provide