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:

Relocation Expenses

Costs associated with moving and adjusting to a new location when a job requires geographical change, often covered or reimbursed by the employer.

Compensating Employees

Involves providing wages, salaries, and other benefits to workers in exchange for their services.

Challenges

Refers to difficulties or obstacles that need to be overcome.

Other Countries

Refers to nations beyond one's own, emphasizing differences in culture, legal systems, economic conditions, and governmental structures.