If the production of computer chips yields greater technology spillovers than the production of potato chips, the government should Select one: a. discourage the production of computer chips with taxes.

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
Problem 7PA
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If the production of computer chips yields greater
technology spillovers than the production of potato
chips, the government should
Select one:
a.
discourage the production of computer
chips with taxes.
b. discourage the production of potato chips
with taxes.
c. encourage the production of potato chips
with subsidies.
d. encourage the production of computer
Ichips with subsidies.
Transcribed Image Text:If the production of computer chips yields greater technology spillovers than the production of potato chips, the government should Select one: a. discourage the production of computer chips with taxes. b. discourage the production of potato chips with taxes. c. encourage the production of potato chips with subsidies. d. encourage the production of computer Ichips with subsidies.
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