When an Industry Is Characterized by Technology Spillover, What Should

question 385

Multiple Choice

When an industry is characterized by technology spillover, what should the government do to ensure that the market equilibrium equals the socially optimal equilibrium?

• A)Impose a tax greater than the value of the technology spillover.
• B)Not allow production of any product that causes a technology spillover.
• C)Provide a subsidy equal to the value of the technology spillover.
• D)Require producers to "clean up" any spillover that results from their production process.

---

Definitions:

Delta

In general contexts, refers to the fourth letter of the Greek alphabet (Δ, δ), but can indicate change in mathematical and scientific expressions.

Circadian Rhythms

Biological processes that display an endogenous, entrainable oscillation of about 24 hours, affecting various biological functions such as sleep-wake cycles.

Chronotypes

Chronotypes refer to the natural inclination of individuals towards being more active or alert at certain times of the day, affecting their sleep patterns and daily performance.

Zeitgebers

External or environmental cues, such as light and temperature, that help regulate biological rhythms, including the sleep-wake cycle.