The Externality Associated with Technology Spillovers

question 527

Multiple Choice

The externality associated with technology spillovers

• A)cannot be internalized by government.
• B)is a negative externality.
• C)can be internalized, potentially, through taxation of firms that are responsible for technology spillovers.
• D)can be internalized, potentially, through patent protection.

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Definitions:

Party

An individual or entity involved in a legal agreement or dispute.

Ordinary Bailment

A legal relationship where physical possession of personal property is transferred from one person to another, but ownership is not.

Bailee

A person or entity to whom goods are entrusted for a specified purpose by the bailor.

Bailed Property

Items temporarily entrusted to another person under a bailment agreement, where the recipient (bailee) is obligated to return them or manage them in a particular way.