Choose the Correct Statement

question 18

Multiple Choice

Choose the correct statement.

• A)Producer surplus is an external cost.
• B)Consumer surplus is an external benefit.
• C)A government subsidy paid to a producer is an external benefit.
• D)Consumer surplus is an external cost.
• E)Subsidies lead to overproduction.

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Definitions:

Power Divider

A mechanical device in vehicles, particularly in heavy-duty trucks, that splits the driving force between the front and rear axles to improve traction.

Interaxle Differential

A mechanism that allows for differential speeds between the front and rear axles of a multi-axle vehicle, improving maneuverability and traction.

Controlled Traction

Differential gearing that uses a friction plate assembly to transfer drive torque from a slipping wheel (sensed by axle shaft spinout) to its opposite.

Tag Axle

A truck dead axle located behind a drive axle; may or may not be a lift axle.