The government engages in a technology policy
A) by allocating tradable technology permits to high technology industry.
B) to internalize the positive externality associated with technology-enhancing industries.
C) to help stimulate private solutions to the technology externality.
D) to internalize the negative externality associated with industrial pollution.

Question

Quizplus · Accepted Answer

The government engages in a technology policy to internalize the positive externality associated with technology-enhancing industries. This means that the government incentivizes and invests in industries that lead to positive spillover effects, such as increased productivity and innovation, that benefit society as a whole. This is done to ensure that these benefits are not just enjoyed by the firms themselves, but also by the wider community. The other options listed do not accurately describe the purpose or methods of a technology policy.

The Government Engages in a Technology Policy