Spencer and Brander's Model Highlights the Conventional Assumption That

question 19

Multiple Choice

Spencer and Brander's model highlights the conventional assumption that

• A) government involvement in business or in the economy tends to fail.
• B) government subsidies tend to waste taxpayer's money.
• C) government subsidies cannot create a successfully competing export.
• D) government tends to distort when it displaces Adam Smith's Invisible Hand.
• E) government subsidies can produce profits that exceed the subsidy's value.

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