When Government Gives a Subsidy to Buyers of Good X

question 42

Multiple Choice

When government gives a subsidy to buyers of good X, the benefits of the subsidy flow to

• A) the buyers of good X only.
• B) the sellers of good X only.
• C) the buyers and sellers of good x equally.
• D) both the buyers and sellers of good x, and the distribution of the benefits will be dependent on the elasticity of demand and the elasticity of supply.

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Definitions:

Normal Distribution

The probability distribution is evenly spread around the mean, signifying more frequent occurrences of data points near the mean than those that are more distant.

Exponential Distribution

The exponential distribution is a continuous probability distribution that is often used to model the time between events in a process that occur continuously and independently at a constant average rate.

Confidence Interval

A range of values, derived from sample data, that is likely to contain the value of an unknown population parameter with a specified level of confidence.

Margin Error

The amount of error that one can expect in an estimate, often expressed as a plus-or-minus figure and used in statistical analysis to indicate confidence in results.