If we choose whether or not it is a good idea to subsidize,
We must compare the present value of the net gain in
Profits with the:
A)taxes paid by the producers on those profits.
B)cost of the subsidy.
C)reduced profits in other nations.
D)timeliness of making the decision.

Question

Quizplus · Accepted Answer

To determine whether or not it is a good idea to subsidize, we need to analyze whether the net gain in profits from the subsidy outweighs the cost of the subsidy. Therefore, the most relevant factor to consider is the cost of the subsidy (Choice B). While taxes paid by the producers (Choice A) and reduced profits in other nations (Choice C) may be important considerations, they are not as central to the question of whether or not the subsidy itself is a good idea. The timeliness of making the decision (Choice D) may be important in terms of implementation logistics but is not directly related to the financial analysis of the subsidy.

If We Choose Whether or Not It Is a Good