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:

Anxiety Disorders

Mental health disorders characterized by excessive fear or worry, which can interfere with daily activities.

Traumatic Brain Injuries

Damage to the brain caused by an external mechanical force, potentially leading to long-term complications or death.

Obsessive-Compulsive Disorder

A psychological condition marked by involuntary recurring thoughts (obsessions) and behaviors (compulsions).

Electrical Appliance

A device that utilizes electricity to perform a specific function, ranging from household to industrial use.