It Is Argued That High-Tech Industries Typically Generate New Technologies
It is argued that high-tech industries typically generate new technologies but cannot fully appropriate the commercial benefits associated with their inventions or discoveries. If this is TRUE, then in order to maximize a country's real income, the government should
A) tax the high-tech firms.
B) subsidize the high-tech firms.
C) protect the high-tech firms.
D) outsource high-tech production.
E) discourage high-tech investments.
The best economic case one can make for an active industrial policy involves
A) the national security argument.
B) the technological spillover argument.
C) the environment preservation argument.
D) the high value added argument.
E) raising the national income.
Spencer and Brander's model highlights the existence of
A) aircraft industries.
B) excess returns present in highly competitive markets.
C) excess returns, or rents, available in non-competitive markets.
D) the futility of government bureaucrats' attempts to build an airplane.
E) natural advantages in foreign technology firms.
Spencer and Brander's model highlights the conventional assumption that
A) government involvement in business or in the economy tends to fail.
B) government subsidies tend to waste taxpayer's money.
C) government subsidies cannot create a successfully competing export.
D) government tends to distort when it displaces Adam Smith's Invisible Hand.
E) government subsidies can produce profits that exceed the subsidy's value.