When Positive Externalities Exist in a Market, If a Subsidy

question 87

Multiple Choice

When positive externalities exist in a market, if a subsidy is imposed:

• A)those who interact in the market will lose surplus.
• B)those who interact in the market will gain surplus.
• C)those who do not interact in the market, but are affected by the externality, will gain surplus.
• D)None of these are necessarily true.

Grasp the concept of par value of stock and its legal implication as legal capital.

Understand the role of registrars and transfer agents in maintaining stockholder records for large public corporations.

Acknowledge the conditions under which dividends can be distributed, including the prerequisites for paying cash dividends.

Analyze the reporting requirements for stock dividends, treasury stock, and retained earnings in financial statements.

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Definitions:

Poor People

Individuals or groups living below the poverty line, lacking sufficient financial resources for basic living standards.

Community Health Nurse

A nursing professional who works within communities to promote public health, prevent disease, and provide direct care to populations.

Community-Based Nurse

A nursing professional who provides care within the community setting, focusing on health promotion and disease prevention.

Population Needs

The collective requirements for health care, education, social services, and infrastructure in a community.