Which of the Following Statements Is NOT True Regarding Subsidies

question 16

Multiple Choice

Which of the following statements is NOT true regarding subsidies?

• A) Subsidies are like taxes in that they create deadweight loss.
• B) Subsidies are like taxes in that they reduce sales of the subsidized good.
• C) Subsidies are unlike taxes in that they increase sales of the subsidized good.
• D) Subsidies are unlike taxes in that they reduce the price that buyers pay for a good.

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Definitions:

Employer associations

Organizations formed by employers to promote their collective labor relations interests, which can include bargaining with unions or lobbying for favorable legislation.

French labor law

A set of legislations and rules that govern employment relations in France, covering areas like work hours, contracts, and employee rights.

Industry level agreements

Negotiated arrangements between labor unions and employers or employers' associations that determine wages and working conditions at the sector or industry level.

Bargaining unit size

Bargaining unit size refers to the number of employees represented by a union or collective bargaining agent, influencing the scope and leverage in negotiations with employers.