A Subsidy

question 62

Multiple Choice

A subsidy

• A) is a payment made by the government to encourage consumption or production of a good or service.
• B) is a payment taken by the government to discourage consumption or production of a good or service.
• C) shifts the demand curve of a product.
• D) is designed to decrease the available supply of a good or service.
• E) raises the cost of doing business.

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Definitions:

State of Dependence

A condition where a person or entity relies on another for support, resources, or decisions.

Power

The ability or capacity to act or influence the behavior of others or the course of events.

Coercive Power

A form of power that relies on the ability to punish or deliver negative consequences to influence others' actions.

Workgroup Ineffectiveness

A situation where a group fails to achieve its goals or perform its functions efficiently due to various factors.