Which of the Following Is False with Reference to Subsidies

question 73

Multiple Choice

Which of the following is false with reference to subsidies?

• A)​They reduce the cost of production.
• B)​They transfer the income from tax payers to the exporters.
• C)​They mean the nation is exporting products in which it does not have comparative advantage.
• D)​They can lead to inefficiencies.

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Definitions:

Percent

A percent is a part per hundred, used as a way of expressing a number as a fraction of 100.

Perimeter

The total distance around the boundary of a two-dimensional shape.

Rectangle

A quadrilateral with four right angles and opposite sides that are equal and parallel.

Dimensions

The measurements of size or extent of something, including length, width, height, or depth.