Question

In: Economics

Suppose that the training, skills, and attitudes received by employees in the computer gaming development industry...

Suppose that the training, skills, and attitudes received by employees in the computer gaming development industry have positive spillover effects as workers leave the industry and move to other jobs. The specificity rule suggests that the best way to achieve more employment in this industry is to

A) impose a tariff on the importation of computer games.

B) remove all sales taxes from the purchases of computer games.

C) give computer game developing firms a subsidy tied to their level of employment.

D) tax the production of computer games.

Solutions

Expert Solution

f the training, skills, and attitudes received by employees in the computer gaming development industry have positive spillover effects as workers leave the industry and move to other jobs. The specificity rule suggests that the best way to achieve more employment in this industry is to give computer game developing firms a subsidy tied to their level of employment.


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