A Private Subsidy on a Good

question 108

Multiple Choice

A private subsidy on a good

• A)is similar to a tax because it decreases the production of the good being subsidized.
• B)increases demand for the good.
• C)punishes those who consume or produce the subsidized good.
• D)has no effect on the quantity of the good produced.
• E)increases production of that good.

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Definitions:

Ectoderm

The outermost layer of cells or tissue of an embryo in early development, or the parts derived from this, which include the epidermis, nerve tissue, and neural crest.

Germ Layer

The three primary layers of cells (ectoderm, mesoderm, and endoderm) in the early embryo that give rise to all organs and tissues in the body.

Respiratory System

The biological system consisting of specific organs and structures used for gas exchange in animals and plants.

Ectoderm

The outermost of the three primary layers in an embryo, from which arises the nervous system, skin, and various sensory organs.