The Effect of a Government Subsidy in a Market Where

question 119

Multiple Choice

The effect of a government subsidy in a market where a positive externality is present is:

• A) to increase surplus.
• B) to increase efficiency.
• C) to make consumers internalize the external benefit.
• D) All of these statements are true.

---

Definitions:

Migrant Workers

Individuals who move from their home region or country to another place to seek employment, often in temporary or seasonal jobs.

Intercultural Communicator

An individual skilled in exchanging information effectively across different cultures, understanding and respecting diversity.

Global Business

Business activities that transcend national borders, involving transactions, partnerships, and operational strategies worldwide.

Franchise

A licensing arrangement whereby an individual or group is granted the right to operate a business under the established brand and business model of another entity.