Question

An example of a subsidy would be where the government ______. A) adds a $ .50...

An example of a subsidy would be where the government ______.


A) adds a $ .50 charge to a pound of sugar

B) requires a country to pay a 10% sugar import fee

C) provides a payment of $1 per pound of sugar to sugar cane farmer

D) mandates that the price of a pound of sugar cannot increase above $3

Homework Answers

Answer #1

an example of a subsidy would be where the government provides a payment of $1 per pound of sugar to sugar cane farmer.

we can define subsidy as an incentive that is been provided by the government to individuals as grants or even as cash. thus, in this example, the government provides payment of $1 per pound of sugar as subsidy to the sugar cane farmer. this will boost their activities and serves as an incentive to them so that these subsidies can help the farmers to reduce the risk incase any uncertanities occour.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Government made proposal to increase the tax on gasoline by 50¢ per gallon. The government would...
Government made proposal to increase the tax on gasoline by 50¢ per gallon. The government would give poor consumers an amount of cash large enough that they could buy their original bundle (of gasoline and other goods). 1. Show how a typical poor person's budget line changes as a result of the tax and the subsidy. 2. Use a graph to show how the tax and subsidy could affect this person's optimal bundle. 3. Is this individual better or worse...
The government is considering variou s subsidy and incentive programs to induce low - income families...
The government is considering variou s subsidy and incentive programs to induce low - income families to live in better quality housing than they would otherwise live in. Three plans are i. Income subsidy: provide additional income I to a family that can be spent in any way. ii. Price subsidy: pay a fixed percentage p of a family’s rent. iii. Voucher: pay an amount s toward a family’s rent, provided the normal rent is at least R. Suppose commodities...
You operate a gaming website, www.mudbeast.net, where users must pay a small fee to log on....
You operate a gaming website, www.mudbeast.net, where users must pay a small fee to log on. When you charged $3 the demand was 550 log-ons per month. When you lowered the price to $2.50, the demand increased to 825 log-ons per month. (a) Construct a linear demand function for your website and hence obtain the monthly revenue R as a function of the log-on fee x. R(x) = _____    (b) Your Internet provider charges you a monthly fee of...
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 50...
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 50 million bottles of wine were sold every month at a price of $6 per bottle. After the tax, 43 million bottles of wine are sold every month; consumers pay $9 per bottle, and producers receive $4 per bottle (after paying the tax). The amount of the tax on a bottle of wine is ______ per bottle. Of this amount, the burden that falls on...
Which of the following would be included as investment in the GDP accounts? a. the government...
Which of the following would be included as investment in the GDP accounts? a. the government buys goods from another country b. someone buys stock in an American company c. a firm increases its capital stock d. All of the above are correct. 2. Scenario 26-3. Assume the following information for an imaginary, open economy. Consumption = $1,000; investment = $200; net exports = -$50; taxes = $230; private saving = $225; and national saving = $150. Refer to Scenario...
1) Which of the following is the best example of a supply-side market failure? a) No...
1) Which of the following is the best example of a supply-side market failure? a) No one provides street lights ina town because once the lights are in operation, people don't have to pay to use them. b) A firm keeps its production costs down by dumping its waste in the nearby river, adversely affecting water quality for residents in the area. c) Government imposes taxes on the production of a socially desirable good. d)Street performers don't get full payment...
Chapter 5 Import Protection Policy: Import Tariffs I. Chapter Overview 1. Types of import tariffs in...
Chapter 5 Import Protection Policy: Import Tariffs I. Chapter Overview 1. Types of import tariffs in terms of the means of collection in terms of the different tariff rates applied in terms of special purposes for collection 2. The effects of import tariffs concepts of consumers surplus and producers surplus the welfare effects of import tariffs 3. Measurement of import tariffs the "height" of import tariffs nominal versus effective tariff rates II. Chapter Summary 1. The means of collecting import...
Prosperity Land Ltd (PLL) is a commercial property developer. It designs and builds malls for customers...
Prosperity Land Ltd (PLL) is a commercial property developer. It designs and builds malls for customers to operate their businesses. Instead of renting the space to the customers, PLL sells the units to them under Strata Title. PLL needs to determine the right selling prices which allows it to maximise profit while attracting many buyers. This assignment requires you to practise principles of correct spreadsheet construction and design to help PLL to improve its decision making to meet its business...
Jane operates a muffin shop in a market where she takes the price of $2 per...
Jane operates a muffin shop in a market where she takes the price of $2 per muffin as given. Her total cost of production is given by TC(q) = 15 + 0.01q2 and her marginal cost of production is given by MC(q) = 0.02q. At her profit maximizing output level of q* = ______, Jane earns ______ profit. Question 7 options: a) 50 muffins; $5 b) 100 muffins; $85 c) 100 muffins; $100 d) 2,000 muffins; $1,580 e) 0 muffins;...
Instructions Answer the following questions on a “working” spreadsheet where calculational cells contain cell-based formulas, not...
Instructions Answer the following questions on a “working” spreadsheet where calculational cells contain cell-based formulas, not simply numbers. No credit will be given if your spreadsheet does not meet the assignment criteria. Submit your spreadsheet using the link in the “Assignments” folder on Blackboard by class time the day it’s due. No credit will be given for late assignments. Remember that the work you submit must be your own. Answers identical or suspiciously similar to those of your classmates’ constitute...