If the Government Wanted to Ensure That the Market Reaches

question 117

Multiple Choice

If the government wanted to ensure that the market reaches the social optimum in the presence of a technology spillover,what should it do

• A)It should impose a corrective tax on any firm producing a technology spillover.
• B)It should offer tax credits to consumers who are adversely affected by the new technology.
• C)It should subsidize producers by an amount equal to the value of the technology spillover.
• D)It should provide research grants to those firms not currently engaging in research to increase competition in the industry.

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Definitions:

T Value

The T value, in statistics, represents the calculated difference represented in units of standard error, determining the significance of the difference between two compared groups.

Dependent Means

A statistical analysis approach used when comparing the means of two related samples or measurements.

Null Hypothesis

A statement suggesting that there is no significant difference or relationship in the data being analyzed.