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.

---

Definitions:

U.S. Constitution

The foundational legal document establishing the framework of government and fundamental laws of the United States of America.

U.S. Constitution

The supreme law of the United States, outlining the national framework of government and fundamental principles.

Precedent

A legal decision or form of conduct that serves as an example or rule for future cases of a similar nature.

Capital Structure

The composition of a company's debts and equity, including bonds, loans, preferred stocks, and common equity, which shows how a firm finances its overall operations and growth.