Which of the Following Generalizations About the Benefit of a Subsidy

question 84

Multiple Choice

Which of the following generalizations about the benefit of a subsidy is correct?

• A) The more inelastic the supply of a product, the larger the portion of the benefit will be to buyers.
• B) The more inelastic the demand for a product, the larger the portion of the benefit will be to buyers.
• C) The more elastic the supply of a product, the smaller the portion of the benefit will be to buyers.
• D) The distribution of the benefit of a subsidy is not affected by the elasticity of the supply and demand for the product for which the subsidy is granted.

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Definitions:

Hippocampus

A temporal lobe structure that plays a pivotal role in learning and forming new memories.

Mental Imagery

The cognitive process of visualizing scenes, objects, or events without their immediate presence.

Spatial Location

The specific physical position or area in space that an object or person occupies.

Paired Associate Learning

A learning process where two items are linked together in a person's mind, enhancing the recall of one item when presented with the other.