A Subsidy

question 62

Multiple Choice

A subsidy

• A) is a payment made by the government to encourage consumption or production of a good or service.
• B) is a payment taken by the government to discourage consumption or production of a good or service.
• C) shifts the demand curve of a product.
• D) is designed to decrease the available supply of a good or service.
• E) raises the cost of doing business.

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Definitions:

Value-expressive

relates to the expression of a consumer's values, attitudes, and beliefs through their choices or support for certain products, brands, or causes.

Unitarian

Referring to a religious denomination that emphasizes the unity of God, rejecting the concept of the Trinity, and focusing on the rational analysis of religious and ethical questions.

Informational

Refers to products, services, or messages that provide valuable knowledge or insights to consumers, aimed at informing rather than persuading.

Reference Groups

Social groups that influence an individual's behavior, decisions, and perceptions, often used as a point of comparison.