Which One of the Following Statements About Subsidies Is NOT

question 81

Multiple Choice

Which one of the following statements about subsidies is NOT correct?

• A) Subsidies cause deadweight losses.
• B) Who actually receives the subsidy does not depend on who gets the check from the government.
• C) Subsidies always increase the gains from trade for producers.
• D) Who benefits from the subsidy depends on the relative elasticities of demand and supply.

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Definitions:

Securities Act

A U.S. law enacted in 1933 that regulates the offer and sale of securities to protect investors against fraud.

Pharma Corporation

A company involved in the development, production, and marketing of pharmaceutical drugs and medications.

Financial Information

encompasses data related to the monetary aspects of an individual or organization, such as assets, liabilities, income, and expenses.

Securities Act

A federal law enacted in 1933 that governs the primary issuance of securities (stocks, bonds) to the public, aiming to ensure transparency and prevent fraud in the securities market.