A Government Subsidy

question 269

Multiple Choice

A government subsidy

• A) is a policy that can be used to help eliminate the deadweight loss from an external cost.
• B) can help achieve an efficient amount of output when the good has an external benefit.
• C) increases consumers' marginal benefit from the good.
• D) Both answers A and C are correct.
• E) Both answers B and C are correct.

---

Definitions:

Webrooming

The practice of researching products online before buying them in a physical store, contrasting with showrooming.

Examining Products

The comprehensive analysis and evaluation of a product's design, features, quality, and market positioning to assess its competitiveness and potential for success.

Multichannel Marketing

The practice of interacting with customers using a combination of indirect and direct communication channels – websites, retail stores, mail order catalogs, direct mail, email, mobile, etc.

Communication Channels

The mediums through which information and messages are transmitted from one entity to another, including verbal, written, and digital forms.