The Graphs Below Refer to Two Separate Product Markets

question 43

Multiple Choice

The graphs below refer to two separate product markets.Assume that society's optimal level of output in each market is Q₀ and that government purposely shifts the market supply curve from S to S₁ in diagram (a) and from S to S₂ in diagram (b) .The shift of the supply curve from S to S₂ in diagram (b) might be caused by a per unit:

• A)subsidy paid to the producers of this product.
• B)tax on the producers of this product.
• C)subsidy paid to the buyers of this product.
• D)tax on the buyers of this product.

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Definitions:

Hygiene Factors

Elements related to job satisfaction which, if absent, can cause dissatisfaction, according to Herzberg's motivation-hygiene theory. They include aspects like working conditions and salary.

Herzberg's Two-Factor Theory

A motivation theory which suggests that there are two sets of factors that influence job satisfaction in the workplace: hygiene factors and motivators.

ERG Theory

A theory of human needs and motivation developed by Clayton Alderfer, which condenses Maslow's hierarchy into three core needs: Existence, Relatedness, and Growth.

Progressive Need Gratification

Progressive need gratification refers to the ongoing process of satisfying one’s needs and desires in a stepwise or continuous manner.