A Subsidy Is A

question 77

Multiple Choice

A subsidy is a:

• A) reverse tax.
• B) means of shifting the supply curve left.
• C) form of tax increase.
• D) movement along the supply curve.

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Definitions:

Comparative Advantage

The ability of an entity to produce a particular good or service at a lower opportunity cost than another, supporting the basis for beneficial trade.

Microchips

Small semiconductor devices containing electrical circuits that can perform calculations or store data, used in electronic devices.

Tires

Rubber-covered, air-filled cylindrical components that provide vehicles with traction and support.

Gain From Trade

The advantage obtained by countries, entities, or individuals from engaging in voluntary trade, due to the specialization and efficient allocation of resources.