Subsidies Are Levied When a Government Wants To

question 42

Multiple Choice

Subsidies are levied when a government wants to:

• A) increase its tax revenues.
• B) encourage the consumption of a good it thinks is currently under-produced.
• C) decrease the demand for a product.
• D) provide consumers with a disincentive to buy.

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Definitions:

Pluralist Model

A theory of society that emphasizes the role of diverse and competing interest groups in the political and decision-making process.

Broad Social Values

General principles or beliefs widely held by a society, guiding behavior and influencing social norms and policy.

Society Fragmentation

The division or breakdown of society into smaller social groups or segments, often leading to discord or a lack of cohesion.

Elite Model

A theory in political science and sociology that suggests that a small, distinct, and privileged group of individuals or organizations hold the most power and influence in society.