Governments Sometimes Subsidize Domestic Industries. When This Occurs

question 66

Multiple Choice

Governments sometimes subsidize domestic industries. When this occurs

• A) the governments also impose tariffs on imports to protect the industries even more.
• B) the subsidized industries have an advantage in international markets relative to non-subsidized industries.
• C) firms cannot be guilty of dumping because their prices are not below their costs.
• D) the subsidized industries sell less in international markets because it is more profitable to sell domestically.

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Definitions:

Creative Intelligence

An aspect of intelligence that involves the ability to deal with new situations using past experiences and current skills.

Practical Intelligence

A type of intelligence that involves the ability to solve everyday problems through practical understanding and reasoning.

Novel Solutions

Innovative or original methods or ideas developed to solve problems.

Analytic Intelligence

One component of Sternberg's triarchic theory of intelligence, referring to the ability to analyze, evaluate, judge, or compare and contrast.