In the Case of a Technology Spillover, the Government Can

question 54

Multiple Choice

In the case of a technology spillover, the government can encourage firms to internalize a positive externality by

• A)taxing production, which would decrease supply.
• B)taxing production, which would increase supply.
• C)subsidizing production, which would decrease supply.
• D)subsidizing production, which would increase supply.

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Definitions:

Productivity

The efficiency of production measured by the amount of output per unit of input.

Consumer Prices

The prices paid by consumers for goods and services, which can fluctuate based on supply and demand, inflation, and other economic factors.

Student Absenteeism

Refers to the habit of students missing school frequently without valid reasons, affecting their academic performance.

Randomly Selected

A method or process where selections are made in such a way that each item or person has an equal chance of being chosen, ensuring unbiased results.