A per-unit government subsidy to producers of a good tends to ...

[ENagel]

A per-unit government subsidy to producers of a good tends to
 
  A) reduce the supply of the good.
  B) increase the supply of the good.
  C) shift the supply curve to the left.
  D) not have any effect on the good's supply.

Question 2

Receiving a voucher for an apartment in a public housing project would be an example of a good that satisfies
 
  A) the principle of rival consumption.
  B) the definition of a public good.
  C) the definition of a good with a positive externality.
  D) the nonexclusion principle.

[phuda]

Answer to Question 1

B

Answer to Question 2

A