If You're a U

question 142

Multiple Choice

If you're a U.S.farmer receiving a subsidy,you are _____.

• A)eligible for welfare
• B)guaranteed a certain price regardless of the market price
• C)guaranteed the market price regardless of your costs
• D)receiving a no-interest loan

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Definitions:

Excise Tax

A tax applied to specific goods, services, or transactions, usually with the intent of discouraging their use or generating revenue.

Tax Per Unit

A specific tax levied on a product based on the number of units purchased, not the value of the purchase.

Efficiency Loss

The loss of economic efficiency that can occur when equilibrium for a good or a service is not achieved or is not achievable.