A Private Subsidy on a Good

question 108

Multiple Choice

A private subsidy on a good

• A)is similar to a tax because it decreases the production of the good being subsidized.
• B)increases demand for the good.
• C)punishes those who consume or produce the subsidized good.
• D)has no effect on the quantity of the good produced.
• E)increases production of that good.

---

Definitions:

"What If"

A speculative question or scenario analysis technique used in planning and decision-making to explore potential outcomes.

Buying Behavior

The decision-making process and actions of consumers that precede the purchase of goods or services.

Results-Oriented

An approach or mindset focused on achieving specific goals or outcomes.

Data Warehouse

A system designed for securely storing large volumes of critical data from various sources in a centralized location for easy access and analysis.