A Subsidy May Be Used as a Corrective Device in the Case

question 27

Multiple Choice

A subsidy may be used as a corrective device in the case of a positive externality because it will __________ marginal private benefits and __________ demand.

• A)increase; decrease
• B)increase; increase
• C)decrease; decrease
• D)decrease; increase

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Definitions:

Revised Secularization

A theory suggesting changes in society lead to a decline in the influence of religion, but not necessarily to its complete disappearance.

Weber's Argument

Max Weber’s theoretical framework suggesting that rationalization and bureaucracy shape modern societies, influencing social actions and institutions.

Protestant Ethic

A concept in sociology proposed by Max Weber suggesting a correlation between Protestantism, especially Calvinism, and the development of the capitalist economy.

Civil Religion

The set of beliefs, rituals, and symbols that a society holds sacred, often blending religious faith with patriotism and national symbolism.