In the Case of a Technology Spillover, Internalizing a Positive

question 522

Multiple Choice

In the case of a technology spillover, internalizing a positive externality through a government subsidy will cause the industry's supply curve to

• A)shift up by an amount equal to the subsidy.
• B)shift down by an amount less than the subsidy.
• C)shift down by an amount equal to the subsidy.
• D)shift down by an amount greater than the subsidy.

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Definitions:

Special Journal

A specialized accounting journal used to record and post transactions of a similar type.

Subsidiary Ledger

A detailed ledger that provides a breakdown of transactions relating to a specific account, which then rolls up into the general ledger.

Usefulness

Usefulness in a business context often refers to the degree to which information or data meets the needs of its users, enabling informed decision-making.

General Journal

A book or electronic record in accounting where transactions are entered before they are posted to individual accounts.