The Government Could Offer a Subsidy to Offset A

question 5

Multiple Choice

The government could offer a subsidy to offset a:

• A) negative externality.
• B) positive externality.
• C) network externality.
• D) A subsidy could offset any of these.

---

Definitions:

Indirect Labour

Workers who support the manufacturing process or service delivery but do not directly contribute to the production of goods or execution of services.

Learning Curves

A graphical representation of how an increase in learning comes from greater experience, leading to reduced costs and increased productivity over time.

Personnel Changes

Alterations in the composition or structure of a workforce, including hiring, firing, promotions, and transfers.

Learning Curve Strategy

Learning curve strategy involves leveraging the concept that the efficiency of performing a task tends to increase with increasing repetitions due to learning and experience gains.