The benefit of a subsidy paid on each unit sold will go entirely to the sellers in the market if
A) the supply curve is perfectly inelastic.
B) if the subsidy is paid to producers.
C) the demand curve is perfectly elastic.
D) the supply is perfectly elastic.
D
You might also like to view...
The main criticism leveled at the rational expectations school of economic thought is that
A. they assume too much influence due to monopoly power. B. they just go too far in ascribing rationality to the general population. C. the assumption that the velocity of circulation is predictable in the short run is not borne out by the facts. D. the assumption that labor union contracts create a rigid wage structure is unrealistic.
Can economic analysis precisely determine the proper levels of government spending and taxation? In your answer explain the problems in using cost-benefit analysis
Please provide the best answer for the statement.
Alex works in his own home as a homemaker and full-time caretaker of his children. Officially, he is:
A. unemployed. B. employed. C. not in the labor force. D. in the labor force.
Refer to the diagram. The quantitative difference between areas A and C for reducing the price from P 1 to P 2 measures:
A. marginal cost.
B. marginal revenue.
C. monopoly price.
D. a welfare or efficiency loss.