Governments Can Use Subsidies

question 36

Multiple Choice

Governments can use subsidies

• A) as a means of increasing government spending.
• B) to achieve an efficient outcome if there are external benefits.
• C) to achieve an efficient outcome if there are external costs.
• D) when they want to increase taxes.

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Definitions:

George Fitzhugh

A nineteenth-century American social theorist known for his defense of slavery as a positive good, arguing that slavery ensured the welfare and civilization of society as a whole.

Yeoman Farmers

Small landowners (the majority of white families in the Old South) who farmed their own land and usually did not own slaves.

Urban Slaves

Refers to enslaved people who lived and worked in urban settings, often in roles different from their counterparts on plantations, such as artisans or domestic workers.

Civil War

Refers to the American Civil War, fought from 1861 to 1865, primarily over the issues of slavery and states' rights, resulting in the preservation of the Union.