Internalising a positive production externality through technology policy:
A)involves a subsidy to industries that yield the largest spillovers
B)requires that the government be able to measure the size of technology spillovers
C)does not have the support of economists who believe technology spillovers are difficult to measure
D)all of the above are true

Question

Quizplus · Accepted Answer

Internalising a positive production externality through technology policy indeed involves subsidizing industries with significant spillovers (A), requires the government to measure the size of these spillovers (B), and is challenging due to the difficulty in measuring technology spillovers, which leads some economists to not support such measures (C). Thus, all the statements are true in the context of addressing positive production externalities through technology policy.

Internalising a Positive Production Externality Through Technology Policy