Economists Generally Prefer the Use of Subsidies Instead of Protective

question 21

Multiple Choice

Economists generally prefer the use of subsidies instead of protective tariffs because:

• A) subsidies create smaller deadweight losses.
• B) subsidies can be targeted more carefully.
• C) the visible cost of subsidies creates an automatic incentive to phase out protection.
• D) all of the above.

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Definitions:

Germinal Stage

The first two weeks of prenatal development after conception, characterized by rapid cell division and the beginning of cell differentiation.

Foetal Stage

The developmental stage of a fetus from 9 weeks after fertilization until birth, characterized by rapid growth and development of bodily structures.

Prenatal Period

The stage of development before birth, from conception to birth, focusing on fetal growth and development within the womb.

Conception

The process of becoming pregnant involving fertilization when a sperm cell joins with an egg.