If a Subsidy Was Imposed on an Industry Whose Production

question 255

Multiple Choice

If a subsidy was imposed on an industry whose production imposed external benefits on others, then the goods' consumers of the good would be ____ and the result would be a(n) ____ in efficiency.

• A)​better off; increase.
• B)​better off; decrease.
• C)​worse off; increase.
• D)​worse off; decrease.

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Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally triggers a reflexive or involuntary response without prior learning.

Reflex

A rapid, automatic response to a stimulus, an unconscious process that protects the body from harm or promotes adaptive functions.

Conditioned Stimulus

An initially neutral stimulus that, after being associated with an unconditioned stimulus, comes to trigger a conditioned response in classical conditioning.

Unconditioned Stimulus

An unconditioned stimulus is something that naturally and automatically triggers a response without any learning being involved.