A subsidy:
A) All of these statements are true.
B) is a requirement that the government pay an extra amount to producers or consumers of a good.
C) is used by governments to encourage the production and consumption of a particular good or service.
D) is used by governments as an alternative to price controls to benefit certain groups without generating a shortage or an excess supply.
Correct Answer:
Verified
Q49: A subsidy:
A)is the reverse of a tax.
B)has
Q51: Policymakers who wish to punish businesses that
Q106: Does a tax on buyers affect the
Q119: Does a tax on sellers affect the
Q122: If the demand curve is less elastic
Q125: Tax incidence:
A) depends on the relative elasticity
Q128: Tax incidence is:
A) the difference between what
Q137: If the demand curve is more elastic
Q137: The relative tax burden borne by buyers
Q140: If the producers bear a larger portion
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents