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A Subsidy May Be Used as a Corrective Device in the Case

question 27

Multiple Choice

A subsidy may be used as a corrective device in the case of a positive externality because it will __________ marginal private benefits and __________ demand.


Definitions:

Domesticates

Plants or animals that have been selectively bred and genetically modified by humans over generations to live alongside them, often for the purpose of food, clothing, or work.

Seasonally

Pertains to changes, events, or patterns that occur at specific times of the year, typically related to natural cycles of the Earth's climate system.

Substantial Housing

Housing that is solidly built and provides adequate shelter and living conditions, meeting the basic physical and safety needs of its inhabitants.

Food Production

The processes involved in cultivating crops and raising livestock to produce food for consumption.

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