One Disadvantage of Government Subsidies Over Price Controls Is That

question 249

Multiple Choice

One disadvantage of government subsidies over price controls is that subsidies

• A)prevent the attainment of equilibrium in the markets in which they are imposed.
• B)make higher taxes necessary.
• C)are always unfair to those with low incomes.
• D)cause unemployment.

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Definitions:

Budgeted Purchases

The estimated amount of goods or materials a company plans to buy over a certain period, often part of the budgeting process.

Units Manufactured

The total number of units produced by a company in a specific period, reflecting the company's production volume.

Year

refers to a period of twelve months used for financial, business, and calendar purposes.

Ending Inventory

Ending inventory refers to the total value or quantity of unsold goods that a company holds at the end of an accounting period.