Which of the Following Observations About Subsidies Is True

question 52

Multiple Choice

Which of the following observations about subsidies is true?

• A) Government subsidies must be paid for, typically by taxing individuals and corporations.
• B) Subsidies are used to reduce exports from a sector, often for political reasons.
• C) Whether subsidies generate national benefits that exceed their national costs is debatable.
• D) Subsidies help foreign producers gain a competitive advantage over domestic producers.

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Definitions:

Exemptions

Provisions that allow certain individuals or entities to be excused from observing a particular law or regulation.

Chapter 11

A chapter of the U.S. Bankruptcy Code that provides for reorganization, usually involving a corporation or partnership, allowing the debtor to keep its business alive and pay creditors over time.

Chapter 13

A form of bankruptcy in the United States that allows individuals with a regular income to reorganize their debts and make a plan to repay all or part of them.

Bankruptcy Estate

The collective pool of assets comprising the legal debtor's property that is available to be used for the payment of debts in a bankruptcy proceeding.