Which of the following is a likely result of a subsidy?
a. An increase in the revenue received by a government
b. An increase in the subsidized economic activity
c. An increase in equilibrium market price
d. An increase in net social welfare
b
You might also like to view...
Firms can protect information in the form of inventions and other industrial know-how under which two types of laws?
A) patents and trade secrets B) trade secrets and copyrights C) trade secrets and trademarks D) patents and copyrights
When a producer has an absolute advantage at producing a good, it means the producer:
A. can produce more of that good than others with the same amount of resources. B. has the ability to produce a good or service at a lower opportunity cost than others. C. has no reason to trade with others. D. is less efficient than other producers.
The greater the degree of international capital mobility
A. the flatter is the FE curve. B. the steeper is the FE curve. C. the further to the right is the FE curve. D. the further to the left is the FE curve.
For inferior goods
A. the substitution and income effects of a price increase will both decrease the quantity of the good demanded. B. the substitution and income effects of a price increase will both increase the quantity of the good demanded. C. the substitution effect of a price increase will decrease the quantity of the good demanded while the income effect of a price increase will increase the quantity of the good demanded. D. the substitution effect of a price increase will increase the quantity of the good demanded while the income effect of a price increase will decrease the quantity of the good demanded.