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A Private Subsidy Has What Effect on the Amount of a Good

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Essay

A private subsidy has what effect on the amount of a good or service produced? Is a private subsidy an appropriate policy to offset the inefficiency from an external cost or an external benefit?


Definitions:

Ecology

The branch of biology that studies the relationships between organisms and their environments.

Social Structure

The organized pattern of social relationships and social institutions that together comprise society.

Ideology

A system of ideas and ideals, especially one that forms the basis of economic or political theory and policy.

Crescive Norms

Unwritten, societal rules and behaviors that are learned implicitly through everyday social interactions.

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