A Subsidy Is a

question 83

Multiple Choice

A subsidy is a

• A)tax imposed by the government on imported goods.
• B)payment made by the government to a producer.
• C)tax imposed by the government on a producer.
• D)payment made by a consumer to a producer.
• E)payment made by foreign governments to domestic farmers.

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Definitions:

Equilibrium Wage

The earnings rate at which the workforce offered balances the workforce demanded.

Binding

In economic terms, refers to a price floor or ceiling that is enforced and has an effect on the market, preventing it from reaching equilibrium.

Price Ceiling

A legally established maximum price for a good or service, aimed at preventing prices from rising too high.

Crude Oil

A natural petroleum product that's extracted from the earth, unrefined, and used as a primary feedstock for fuel and various chemical productions.