Which of the Following Subsidies Is Prohibited Under WTO Rules

question 14

Multiple Choice

Which of the following subsidies is prohibited under WTO rules?

• A)Subsidies to research and development
• B)Subsidies to assist disadvantaged regions within the exporting country
• C)Subsidies to assist firms in meeting environmental regulations
• D)Subsidies to encourage firms in a developed country to export more

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Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing firms to adjust to changes in the market or economic conditions.

Demand

The quantity of a product or service that consumers are willing and able to buy at various prices during a specified period of time.

Industry Entry

The process of a new competitor or firm entering into an industry or market.

Consumer Incomes

The total earnings received by consumers, including wages, salaries, benefits, and income from investments, influencing their purchasing power and consumption patterns.