Economists typically agree that the special protection given to owners of patents tends to
A) reduce expenditures on research and development.
B) increase expenditures on research and development.
C) reduce economic growth.
D) reduce productivity.

Question

Quizplus · Accepted Answer

Patents provide a temporary monopoly to the owner, which means that they have exclusive rights over the production and sale of the invention. This incentivizes firms and inventors to invest in research and development to create new technologies or products, knowing that they will be able to reap the financial benefits of their innovation. Therefore, patents are likely to increase expenditures on research and development.

Economists Typically Agree That the Special Protection Given to Owners