In Which of the Following Cases Can a Subsidy Possibly

question 34

Multiple Choice

In which of the following cases can a subsidy possibly harm its recipients?

• A)When consumption of the subsidized good is mandatory
• B)When the subsidy is fully funded by the government
• C)When the subsidy is targeted at low-income groups
• D)When the good that is subsidized is a luxury good

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Definitions:

Multiple Parts

Consisting of several components, elements, or sections that contribute to a whole.

Adhesion

A contractual term referring to agreements that are not negotiable and are offered on a "take it or leave it" basis by one party to another.

Illusory

Something that is deceptive or not based in reality, often used in the context of contracts to describe terms that fail to bind the parties definitively.

Fine Print

The part of a document, often a contract or agreement, that contains important details and conditions, usually in smaller type.