Which of the Following Is a Problem of Subsidizing an Industry

question 31

Multiple Choice

Which of the following is a problem of subsidizing an industry to help it establish a world monopoly?

• A) All monopolies create deadweight losses.
• B) A nation may pick the wrong industry to subsidize.
• C) If both the domestic firm and the foreign firm enter the market, nations might end up subsidizing two money losing firms.
• D) Both B and C are correct.

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Definitions:

Depositions

Out-of-court testimonies given under oath by parties or witnesses in a legal case, used as evidence during trial.

Legal Entitlement

A right given by law to an individual or entity to receive or do something.

Remedy

A means of legal reparation or correction, available through court proceedings, for a wrong or harm suffered.

Testify

To provide evidence or bear witness in a court of law, often under oath.