When a Subsidy Program Allocates Subsidies to a Subset of the Population

question 31

Multiple Choice

When a subsidy program allocates subsidies to a subset of the population, the result is greater demand and higher prices in the market where purchases are subsidized, raising costs for

• A) only those buyers receiving the subsidies.
• B) primarily those buyers receiving the subsidies.
• C) all buyers in that market.
• D) only the taxpayers who pay for the subsidy.

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Definitions:

Production Cost

The total expense of producing a good or service, including labor, materials, and overhead costs.

Land Rent

The payment made for the use of land, which is determined by its location, fertility, and other factors influencing its productive capacity.

Acres

A unit of land area used in the United States and some other countries, equivalent to 43,560 square feet.

Relevant Columns

Important or pertinent columns in a database or spreadsheet that are significant to a particular analysis or task.