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Which of the Following Would Some Economists Be Likely to Perceive

Question 32

Multiple Choice

Which of the following would some economists be likely to perceive as the most appropriate public policy response to a positive externality created by the development of a highly innovative new technology?


A) not taking into account the negative externality associated with social benefit
B) not taking into account the positive externality associated with social benefit
C) have reasonable rates of return not based on a notion of unearned social benefits
D) develop ways to provide a greater share of the social benefits to the innovator

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