When a Company or Industry Is Subsidized Because It Is

question 12

Multiple Choice

When a company or industry is subsidized because it is not profitable,a secondary effect of the subsidies will likely be that

• A)jobs will be saved,so the subsidies will promote economic efficiency.
• B)resources that are used unproductively will remain in low productivity areas.
• C)the company or industry will stabilize and become profitable.
• D)the subsidies will direct resources toward highly productive projects.