When government gives a subsidy to buyers of good X, the benefits of the subsidy flow to
a. the buyers of good X only.
b. the sellers of good X only.
c. the buyers and sellers of good x equally.
d. both the buyers and sellers of good x, and the distribution of the benefits will be dependent on the elasticity of demand and the elasticity of supply.
D
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Marge would like her husband Homer to drink less beer. All of the following are ways she could encourage Homer to drink less beer except
A) pay him to drink less beer. B) convince him that beer is good for his health. C) refuse to cook dinner for him if he does not cut back on his beer drinking. D) make him pay her $10 for every beer he drinks.
Why do many economists believe that money affects output? What is the empirical evidence in support of that belief?
What will be an ideal response?
A good purchase for an investor seeking a high degree of liquidity with minimal market risk would be a U.S
A) Treasury bill. B) Treasury bond. C) Treasury note. D) savings bond.
The yield to maturity is equal to
A) the interest rate at which the present value of an asset's returns is equal to its price today. B) the face value or par value of a coupon bond. C) any payments received from an asset at the date the asset matures. D) interest rate on the asset minus any taxes owed on the interest received.