If the production of computer chips yields greater technology spillovers than the production of potato chips, the government should
A. encourage the production of computer chips with subsidies.
B. discourage the production of potato chips with taxes.
C. encourage the production of potato chips with subsidies.
D. discourage the production of computer chips with taxes.
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Suppose that electricity producers create a negative externality equal to $5 per unit. Further suppose that the government imposes a $5 per-unit tax on the producers. What is the relationship between the after-tax equilibrium quantity and the socially optimal quantity of electricity to be produced?
A. They are equal.
B. The after-tax equilibrium quantity is greater than the socially optimal quantity.
C. The after-tax equilibrium quantity is less than the socially optimal quantity.
D. There is not enough information to answer the question.
Barking dogs cannot be considered an externality because externalities must be associated with some form of market exchange.
A. 对
B. 错
Research into new technologies conveys neither negative externalities nor positive externalities.
A. 对
B. 错
When firms internalize a negative externality, the market supply curve shifts to the left.
A. 对
B. 错