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:

Goods

Tangible products that are produced, bought, or sold, thereby contributing to an economy's exchange of value.

Services

Activities or benefits provided by one party to another which are intangible and do not result in ownership.

Employment Patterns

The trends or general tendencies in how people are employed, including permanency, sectors of employment, work hours, and conditions.

Charles Handy

A renowned Irish author and philosopher specializing in organizational behavior and management.