Multiple Choice
Suppose that the domestic production of computer games creates enjoyment for those who play the games. Domestic production of computer games also results in knowledge spillovers that positively impact many other industries. One possible policy that could be employed to encourage increased production of computer games by domestic firms is:
A) to impose tariffs on computer game imports.
B) to tax the production of computer games.
C) to tax the consumption of computer games.
D) to eliminate all restrictions on the importation of computer games.
Correct Answer:

Verified
Correct Answer:
Verified
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