If the Production of Computer Chips Yields Greater Technology Spillovers

question 100

Multiple Choice

If the production of computer chips yields greater technology spillovers than the production of potato chips, the government should

• A)encourage the production of computer chips with subsidies.
• B)discourage the production of potato chips with taxes.
• C)encourage the production of potato chips with subsidies.
• D)discourage the production of computer chips with taxes.

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Definitions:

Demand

The willingness and capacity of customers to buy products and services at specific prices.

Supply

The total amount of a good or service that producers are willing and able to sell at a given price level.

Insurance Copayments

The fixed out-of-pocket amount paid by an insured for covered services, in addition to any insurance-covered portion.

Physician Fees

are the charges or payments required for medical services provided by a doctor or medical specialist.