A per-unit government subsidy to producers of a good tends to
A) reduce the supply of the good.
B) increase the supply of the good.
C) shift the supply curve to the left.
D) not have any effect on the good's supply.
B
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Oscar makes purchases of an existing product (X) such that the marginal utility of the last unit he consumes is 10 utils and the price is $5. He also tries a new product (Y) and the marginal utility of the last unit he consumes is 8 utils and the price is $1. The equal marginal principle suggests that Oscar should
A. increase his consumption of product Y and decrease his consumption of product X. B. increase his consumption of product X and increase his consumption of product Y. C. decrease his consumption of product Y and decrease his consumption of product X. D. increase his consumption of product X and decrease his consumption of product Y.
Human capital refers to the percentage of the working-age population in the labor force
Indicate whether the statement is true or false
One of the first organizations to investigate the business cycle was
A) the Federal Reserve System. B) the National Bureau of Economic Research. C) the Council of Economic Advisors. D) the Brookings Institution.
The main source of government funding is
A) user fees. B) taxes. C) borrowing. D) transfer payments.