If the Government's Provision of a Subsidy Is Too Small

question 48

Multiple Choice

If the government's provision of a subsidy is too small to counteract the entire effect of a positive externality,the:

• A) quantity consumed will still be too low.
• B) quantity consumed will still be too high.
• C) total surplus will be maximized, but the outcome will be inefficient.
• D) total surplus will not be maximized, but the outcome will be efficient.

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Definitions:

Sit-down Strike

is a form of protest where workers physically occupy their workplace but refuse to work, aiming to halt production to leverage demands without abandoning their positions to replacements.

Communist Party

A political party advocating for the principles of communism, where the means of production are owned by the community as a whole.

British Voluntarism

A characteristic of British industrial relations where labor negotiations and terms are determined largely through voluntary agreement between employers and trade unions, with minimal legal intervention.

Irish Labor Relations

The system and legal framework governing the interaction between employers, employees, and trade unions in Ireland, characterized by a mixture of voluntarist and statutory elements.