If a Subsidy (Going to Consumers)is Created for a Good

question 61

Multiple Choice

If a subsidy (going to consumers) is created for a good this would

• A)move its demand curve to the right.
• B)move its demand curve to the left.
• C)cause a movement along the demand curve to a (higher price, lower quantity)point.
• D)cause a movement along the demand curve to a (lower price, higher quantity)point.

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Definitions:

Raw Material Costs

The expenses associated with the acquisition of raw materials used in the production of goods.

Labor Costs

The total sum of all wages paid to employees, as well as the cost of employee benefits and payroll taxes incurred by an employer.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including but not limited to utilities, maintenance, and salaries of supervisory personnel.

Manufacturing Inventories

Manufacturing inventories consist of raw materials, work-in-process items, and finished goods that are held by a company in the course of producing its products.