The Distribution of Surplus Received from a Subsidy Offered in a Market

Multiple Choice

The distribution of surplus received from a subsidy offered in a market where a positive externality is present depends on:

A) how the subsidy is distributed among those affected by the externality.
B) if those who are affected receive their true value of the externality.
C) where the government gets the money to pay for the subsidy.
D) None of these statements is true.