positive spillovers in technology and then suggest a parallel set of policies that governments could follow

for addressing positive externalities in education.

7. Which of the following goods or services are nonexcludable?

a. police protection

b. streaming music from satellite transmission programs

c.

roads

d. primary education

e. cell phone service

Access for free at openstax.org
13 • Review Questions 323

8. Are the following goods non-rival in consumption?

a. slice of pizza

b.

laptop computer

c. public radio

d.

ice cream cone

Review Questions

9. In what ways do company investments in research and development create positive externalities?

10. Will the demand for borrowing and investing in R&D be higher or lower if there are no external benefits?

11. Why might private markets tend to provide too few incentives for the development of new technology?

12. What can government do to encourage the development of new technology?
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