Question: Suppose the U.S. president is attempting to decide whether the federal government should spend more on research to find a cure for heart disease. Imagine

Suppose the U.S. president is attempting to decide whether the federal government should spend more on research to find a cure for heart disease. Imagine that you are the president's economic advisor and need to prepare a report discussing the relevant factors the president should consider. Use the concepts of opportunity cost and tradeoffs to discuss some of the main issues you would deal with in your report?

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If the federal government has a fixed budget for medical research then the opportunity cost of funding more research on heart disease is the reduction in funding for research on other diseases The decision should be made at the margin To maximize the benefits from government spending on medical research the ... View full answer

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