Question

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.

Answer 1

a

Step-by-step explanation:

Based on the information provided within the question it can be said that the best possible policy to encourage this would be to impose tariffs on computer game imports. This would force company's to begin domestic production of computer games in order to continue making the profits from the domestic market as opposed to losing out on all of the opportunities that the domestic market offers them.