Who Gains Surplus When Consumers in a Market Are Given

question 124

Multiple Choice

Who gains surplus when consumers in a market are given a subsidy for a positive externality?

• A)Consumers
• B)Producers
• C)Others affected by the externality
• D)Both consumers and producers gain surplus.

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Definitions:

Common Currency

A currency that is used by multiple countries, facilitating easier trade and financial transactions between them.

Economic Reasons

The financial or monetarily driven considerations and motivations influencing decisions, policies, or behaviors in an economic context.

Offshoring

The relocation of business processes or manufacturing to a foreign country, typically to leverage lower costs or other benefits.

Infant Industry

A new or emerging industry that may be protected by the government from international competition to allow it to grow and establish itself.