Suppose That the Training, Skills, and Attitudes Received by Employees

question 4

Multiple Choice

Suppose that the training, skills, and attitudes received by employees in the computer gaming development industry have positive spillover effects as workers leave the industry and move to other jobs. The specificity rule suggests that the best way to achieve more employment in this industry is to:

• A)impose a tariff on the importation of computer games.
• B)remove all sales taxes from the purchases of computer games.
• C)give computer game developing firms a subsidy tied to their level of employment.
• D)tax production of computer games.

---

Definitions:

Competitors

Entities that are in the same industry and vie for the same customers or market share.

Economic Profit

The difference between a firm's total revenue and its opportunity costs, both explicit and implicit.

Perfect Competitor

A theoretical market scenario where numerous small firms sell identical products, allowing no single firm to influence the market.

Marginal Revenue

The extra income a company earns by selling an additional unit of a product or service.