Which of the Following Statements with Regard to Subsidies Is

question 52

Multiple Choice

Which of the following statements with regard to subsidies is true?

• A) The main gains from subsidies accrue to domestic producers, whose international competitiveness is increased as a result.
• B) Pharmaceutical industry tends to be one of the largest beneficiaries of subsidies in most countries.
• C) Subsidies always generate national benefits that exceed their national costs.
• D) Subsidies comprise only of cash grants and low-interest loans.
• E) Subsidies never help a firm achieve a first-mover advantage in an emerging industry.

---

Definitions:

Problem-solving Ability

The capacity to process information, analyze complicated situations, and come up with effective solutions.

Affect-as-information Hypothesis

The theory suggesting that individuals use their current emotions to infer attitudes and preferences under certain conditions.

Anticipated Emotions

The emotions people expect to feel due to future events or outcomes.

Current Emotional States

The present feelings or mood of an individual, ranging from happiness and joy to anger and sadness.