Which of the Following Generalizations About the Benefit of a Subsidy

question 84

Multiple Choice

Which of the following generalizations about the benefit of a subsidy is correct?

• A) The more inelastic the supply of a product, the larger the portion of the benefit will be to buyers.
• B) The more inelastic the demand for a product, the larger the portion of the benefit will be to buyers.
• C) The more elastic the supply of a product, the smaller the portion of the benefit will be to buyers.
• D) The distribution of the benefit of a subsidy is not affected by the elasticity of the supply and demand for the product for which the subsidy is granted.

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Definitions:

Blanket

A large piece of soft cloth intended to retain warmth, typically used while sleeping or resting for added comfort and heat.

Psychology

The scientific study of the mind and behavior, encompassing various aspects of conscious and unconscious experience as well as thought.

Chemistry

A branch of physical science concerned with the composition, structure, properties, and changes of matter.

Neo-psychoanalysts

Neo-psychoanalysts are theorists who extended Freudian psychoanalysis to include social and cultural factors in personality and psychological development.