A Subsidy

question 55

Multiple Choice

A subsidy:

• A) reduces the amount that buyers pay and increases the amount that sellers receive for a good.
• B) increases the amount that buyers pay and reduces the amount that sellers receive for a good.
• C) reduces both the amount that buyers pay and the amount sellers receive for a good.
• D) increases both the amount that buyers pay and the amount sellers receive for a good.

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Definitions:

Behavior

The range of actions and mannerisms made by individuals, organisms, systems, or artificial entities in conjunction with themselves or their environment.

Frequency

The rate at which a vibration occurs that constitutes a wave, either in a material (as in sound waves), or in an electromagnetic field (as in radio waves and light).

B.F. Skinner

An influential American psychologist known for his work in behaviorism, particularly the development of the theory of operant conditioning.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reward or punishment.