In a Subsidized Market, Inefficiency Arises Because

question 11

Multiple Choice

In a subsidized market, inefficiency arises because

• A) Subsidized consumers will consume excess amounts of a good or service
• B) Producers have less incentive to reduce production costs
• C) Suppliers of resources may have little direct control over output
• D) All of the above

---

Definitions:

Current Liabilities

Short-term financial obligations that a company owes and is expected to pay within one year or within the normal operating cycle.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, whichever is longer.

Cash Flow

The total amount of money being transferred into and out of a business, affecting its liquidity.

Receipts

Documentation of a transaction that provides proof of payment.