If the Government Wants to Encourage the Consumption of a Particular

question 9

Multiple Choice

If the government wants to encourage the consumption of a particular good,they should enact:

• A) a subsidy to buyers, since they want to affect consumption of the good.
• B) a subsidy to sellers, since they want more to be produced and offered for sale.
• C) a subsidy to buyers, since they deserve the benefit more than the producers.
• D) a subsidy on either buyers or sellers, since they will both have the same effect on the market.

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Definitions:

Machinery

Consists of the machines and equipment designed to perform specific tasks in industrial, commercial, or agricultural applications.

Accounts Receivable

Amounts owed to a company by customers for goods or services delivered on credit.

Ledger

A comprehensive collection of all accounts used by an organization, summarizing all transactions occurring within an accounting period.

Account Balances

The amount of money in a financial repository at any given moment, reflecting the net of debits and credits over time.