A Subsidy

question 32

Multiple Choice

A subsidy

• A)lowers the price received by farmers.
• B)decreases the quantity supplied in the market.
• C)raises the price received by farmers.
• D)prevents the deadweight loss from underproduction.
• E)decreases total revenue received by farmers.

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Definitions:

Standard

A recognized level of quality or attainment that is used as a benchmark for comparison.

Materials Quantity Variance

The difference between the expected amount of materials needed for production and the actual amount used, affecting production costs.

Standard

Typically refers to an accepted level of quality or achievement that is used as a measure, norm, or model in comparative evaluations.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and are an integral part of the finished product.