Which of the Following Does NOT Determine the Nature of Public

question 51

Multiple Choice

Which of the following does NOT determine the nature of Public Economics?

• A)Public economics studies the government and how its policies affect the economy.
• B)Public economics is the study of government policy through the lens of economic efficiency and equity.
• C)Public economics builds on the theory of welfare economics and is ultimately used as a tool to improve social
• D)Public Economics studies the behaviour of private firms and is called economics of Priavte Sector.

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Definitions:

Disguised Subsidy

Financial support given to industries or businesses in indirect ways, not easily identifiable as traditional subsidies, to lower their costs or increase their competitiveness.

Consumer Surplus

The gap between the total sum consumers are prepared and financially able to spend on a good or service and the sum they actually spend.

Legal

Pertaining to or conforming to the laws of a country or the legality of a situation or activity.

Efficient Output Level

The quantity of output at which a firm's average total cost is minimized.