The Economic Benefit of a Per-Unit Subsidy Accrues Disproportionately to the Side

question 20

True/False

The economic benefit of a per-unit subsidy accrues disproportionately to the side of the market that is more price-inelastic.

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Definitions:

Act of State Doctrine

A principle in international law that exempts a nation from being sued in another nation's courts for acts performed by it in the exercise of its sovereign authority.

Sovereign Immunity

The legal doctrine that a sovereign or state cannot commit a legal wrong and is immune from civil suit or criminal prosecution.

Agricultural Cooperatives Exemption

A legal provision that allows agricultural cooperatives to operate under specific regulatory exceptions, often for tax purposes.

Capper-Volstead Act

A U.S. federal law that grants farmers the ability to create agricultural cooperatives without risking antitrust law sanctions.