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- Subject
- Marketeconomics-mcqs › market
- Published
- 31 May 2019
- Last updated
- 28 May 2026
Explanation
A subsidy provided to producers lowers their production costs, which causes the supply curve to shift to the right. It does not directly affect the demand curve or simply change the quantity supplied along the existing supply curve.
More Market MCQs
Practice related questions from the same subject.
- 1.Broadcasting firms use satellite TV subscriptions and signal detection tools primarily to combat which issue?
- 2.Which of the following is a classic example of a public good?
- 3.Which of the following factors can lead to market failure?
- 4.When a neighbor burns yard debris and smoke enters your home, what type of externality does this represent?
- 5.Why is a competitive equilibrium considered Pareto efficient?
- 6.Within the insurance sector, individuals who pose a greater risk tend to purchase insurance more frequently. What concept does this illustrate?
- 7.In a Nash equilibrium, how does each player select their strategy?
- 8.In a contestable market, how must existing companies act to prevent new competitors from entering?
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