When Does a Subsidy That Benefits Consumers Result in a More

question 294

Multiple Choice

When does a subsidy that benefits consumers result in a more efficient allocation of a resource?

• A) when the good being produced or consumed is not scarce
• B) when the good being produced or consumed generates a negative externality
• C) when the good being produced or consumed generates a positive externality
• D) when the equilibrium price of the good is one that consumers don't like

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Definitions:

Labour Forecasting

The process of estimating the future demand for and supply of labor, helping organizations plan their workforce requirements.

Establishing Costs

Establishing Costs involves determining the expenses associated with the production, operation, or provision of a service.

Scheduling

The process of arranging, controlling, and optimizing work and workloads in a production process or manufacturing process.