When a Country Provides a Subsidy to a Home Producer

question 125

Multiple Choice

When a country provides a subsidy to a home producer, it:

• A) causes the consumer surplus to decline.
• B) causes the producer surplus to decline.
• C) causes government cost to decline.
• D) causes no change in the consumer surplus.

---

Definitions:

Systemic Circuit

This component of the cardiovascular system is responsible for transporting oxygen-rich blood from the heart to the rest of the body and bringing oxygen-poor blood back to the heart.

Large Veins

Large veins are blood vessels that carry deoxygenated blood toward the heart, excluding the pulmonary and umbilical veins.

Systemic Circuit

The part of the cardiovascular system that carries oxygenated blood away from the heart to the body and returns deoxygenated blood back to the heart.

Pulmonary Circuit

The part of the circulatory system that carries deoxygenated blood from the heart to the lungs for oxygenation, and returns oxygenated blood back to the heart.