In a Perfectly Competitive Market, Which of the Following Will

question 16

Multiple Choice

In a perfectly competitive market, which of the following will not occur as a result of a subsidy?

• A)The market will under-produce relative to the efficient level.
• B)Consumer surplus will be higher than with no subsidy.
• C)Producer surplus will be higher with no subsidy.
• D)The subsidy causes a deadweight loss.

---

Definitions:

Undisputed Debt

A financial obligation that the debtor acknowledges and does not contest the validity of.

Legally Sufficient

Adequate to meet the required standards of law, usually referring to evidence or grounds for action.

Denney v. Reppert

A legal case demonstrating the principle that a reward can only be claimed by those who have knowledge of the reward offer before completing the actions required for the reward.

Bank Robber

An individual who illegally steals money or valuables from a bank, typically through the use of force, threat, or deceit.