JobKeeper was a Australian government initiative introduced during the Coronavirus pandemic to ensure that businesses could continue to employ workers. explores potential government initiatives following the conclusion of JobKeeper. Watch the video and answer the questions. The video proposes a HECs-style government loan to be offered to businesses following the conclusion of JobKeeper. Why might the government prefer to give a loan to businesses rather than a subsidy? Group of answer choices 1Since firms have to pay it back eventually, the government ensures that businesses do not grow too quickly 2The government wants to minimise the effect of this initiative on its deficit, while still supporting businesses 3Giving a subsidy to businesses may cause a reduction in innovation and therefore a waste of taxpayers dollars 4 B and C are possible

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter19: The Problem Of Adverse Selection
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Problem 19.4IP
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JobKeeper was a Australian government initiative introduced during the Coronavirus pandemic to ensure that
businesses could continue to employ workers. explores potential government initiatives following the
conclusion of JobKeeper. Watch the video and answer the questions.
The video proposes a HECS-style government loan to be offered to businesses following the conclusion of
JobKeeper. Why might the government prefer to give a loan to businesses rather than a subsidy?
Group of answer choices.
1Since firms have to pay it back eventually, the government ensures that businesses do not grow too quickly
2The government wants to minimise the effect of this initiative on its deficit, while still supporting businesses
3Giving a subsidy to businesses may cause a reduction in innovation and therefore a waste of taxpayers
dollars
4 B and C are possible
Transcribed Image Text:JobKeeper was a Australian government initiative introduced during the Coronavirus pandemic to ensure that businesses could continue to employ workers. explores potential government initiatives following the conclusion of JobKeeper. Watch the video and answer the questions. The video proposes a HECS-style government loan to be offered to businesses following the conclusion of JobKeeper. Why might the government prefer to give a loan to businesses rather than a subsidy? Group of answer choices. 1Since firms have to pay it back eventually, the government ensures that businesses do not grow too quickly 2The government wants to minimise the effect of this initiative on its deficit, while still supporting businesses 3Giving a subsidy to businesses may cause a reduction in innovation and therefore a waste of taxpayers dollars 4 B and C are possible
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