A Subsidy on a Product Will Generate More Actual Benefit

question 2

Multiple Choice

A subsidy on a product will generate more actual benefit for consumers (and less for producers) when

• A) the supply of the product is relatively inelastic.
• B) the supply of the product is relatively elastic.
• C) the demand for the product is relatively elastic.
• D) either a or c is true.

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Definitions:

TMC Wheel End Adjustment

A procedure or set of guidelines issued by the Technology & Maintenance Council for adjusting the wheel end of a vehicle to ensure proper alignment and performance.

Preload Drag

A condition characterized by friction and drag in machinery components, typically bearings, caused by an applied preload force to ensure clearance elimination and precise operation.

Endplay

Linear play in a shaft, wheel, or rotor. The slang term for this, slop, describes the condition well. Some OEMs use the term axial slop to describe endplay.

Truck Wheel Seal

A component used in trucks to prevent lubricants from leaking out of the wheel bearings and to keep contaminants out.