When a Subsidy Is Imposed on a Market with a Positive

question 3

Multiple Choice

When a subsidy is imposed on a market with a positive externality: total surplus increases. the market quantity moves closer to the efficient quantity. deadweight loss decreases.

• A)II only
• B)I and II only
• C)I and III only
• D)I, II, and III

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Definitions:

Individuation

The psychological process whereby an individual becomes distinct and separate from others, developing their own identity.

Rebellion

The act of resisting authority, control, or convention.

Social Affiliation

The act of connecting or associating with others in a social context, forming relationships or bonds.

Bonding

The process of developing a close and emotional relationship between individuals, such as between parents and their newborn.