The Difference Between a Tax and a Subsidy Is That

question 45

Multiple Choice

The difference between a tax and a subsidy is that when the government places a tax on a good,it ________ the equilibrium price and ________ the equilibrium quantity,whereas when the government places a subsidy on a good,it ________ the equilibrium price and ________ the equilibrium quantity.

• A) increases; decreases; decreases; increases
• B) increases; decreases; decreases; decreases
• C) decreases; decreases; increases; increases
• D) decreases; increases; increases; decreases
• E) increases; does not change; does not change; increases

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Definitions:

Feasibility Report

A document that assesses the practicality and potential success of a proposed project or system.

Statement of Purpose

A written document that outlines an individual's intentions, goals, and reasons for applying to a specific program, job, or opportunity.

Scope of the Report

Defines the boundaries and coverage of the report, including what will and will not be addressed within the document.

Interpreting Data

The process of analyzing and making sense of data to draw meaningful conclusions or insights.