Consider a Market in Which There Is an External Benefit

question 116

Multiple Choice

Consider a market in which there is an external benefit. A private subsidy paid to producers can be used to arrive at the efficient market equilibrium because the subsidy will

• A) decrease demand.
• B) decrease the supply of the good.
• C) increase the price demanders pay.
• D) increase the quantity produced.

---

Definitions:

Aristotle

An ancient Greek philosopher and scientist, one of the greatest intellectual figures of Western history, who made significant contributions to various fields of knowledge.

Plato

An ancient Athenian philosopher, a student of Socrates and teacher of Aristotle, known for his contributions to Western philosophy.

Forms

In Platonic philosophy, refers to the abstract, perfect, non-physical essences of things or concepts that represent their most accurate reality.

Will to Live

A fundamental drive or motivation inherent in humans and animals aimed at survival and continuation.