A government subsidy
A) is a policy that can be used to help eliminate the deadweight loss from an external cost.
B) can help achieve an efficient amount of output when the good has an external benefit.
C) increases consumers' marginal benefit from the good.
D) Both answers A and C are correct.
E) Both answers B and C are correct.
Correct Answer:
Verified
Q161: When the government uses a private subsidy
Q162: Public provision
A) is the production of a
Q163: Q164: A government subsidy paid to a firm Q165: Which of the following is a method Q167: The government can overcome the inefficiency created Q168: A subsidy is
i.increases
A) the revenue received from
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