Which of the Following Statements Is TRUE Regarding Subsidy

question 50

Multiple Choice

Which of the following statements is TRUE regarding subsidy?

• A)A subsidy causes the value of goods to exceed the cost of producing the goods.
• B)A subsidy reduces deadweight loss of non-beneficial trade.
• C)A subsidy means that the sellers receive less than buyers pay.
• D)Suppliers receive more benefit of a subsidy if the elasticity of supply is less than the elasticity of demand.(True Answer
• )Correct

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Definitions:

Boiling Points

The temperature at which a substance transitions from the liquid phase to the gas phase under standard atmospheric pressure.

Retention Time

The time taken for a substance to travel through a chromatography column to the detector, a critical parameter for identifying substances in the mix.

Gas Chromatograph

An analytical instrument that measures the content of various components in a sample by separating and analyzing vapors.

Blank Sample

A sample without the analyte of interest, used as a control in analytical measurements.