When does a subsidy that benefits consumers result in a more efficient allocation of a resource? (A) when the good being produced or consumed is not scarce (B) when the good being produced or consumed generates a negative externality when the good being produced or consumed generates a positive externality (D) when the equilibrium price of the good is one that consumers don't like

When does a subsidy that benefits consumers result in a more efficient allocation of a resource? (A) when the good being produced or consumed is not scarce (B) when the good being produced or consumed generates a negative externality when the good being produced or consumed generates a positive externality (D) when the equilibrium price of the good is one that consumers don't like

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter5: Difficult Cases For The Market And The Role Of Government

Section: Chapter Questions

Problem 10CQ

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