The Benefit of a Subsidy Paid on Each Unit Sold

question 132

Multiple Choice

The benefit of a subsidy paid on each unit sold will go entirely to the sellers in the market if

• A)the supply curve is perfectly inelastic.
• B)if the subsidy is paid to producers.
• C)the demand curve is perfectly elastic.
• D)the supply is perfectly elastic.

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Definitions:

Altruism

The selfless concern for the well-being of others, often leading to actions that benefit others at a cost to oneself.

Prejudice

A preconceived judgement or opinion about someone or something that is not based on reason or actual experience, often manifesting as bias or discrimination.

Discrimination

Unfair or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Free Association

A psychoanalytic technique used to explore the unconscious by having patients reveal whatever thoughts, feelings, or images come to mind.