Which of the Following Observations About Subsidies Is True

question 52

Multiple Choice

Which of the following observations about subsidies is true?

• A) Government subsidies must be paid for, typically by taxing individuals and corporations.
• B) Subsidies are used to reduce exports from a sector, often for political reasons.
• C) Whether subsidies generate national benefits that exceed their national costs is debatable.
• D) Subsidies help foreign producers gain a competitive advantage over domestic producers.

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Definitions:

Lingerie Store

A commercial establishment that specializes in selling women's underwear, nightwear, and similar intimate apparel.

Rollback Technique

A method used in recovery and error-checking that involves reverting a system or process to a previous safe state.

Decision Tree

A graphical representation used in decision analysis to visually and explicitly represent decisions and decision making.

Revised Probability

An updated chance or likelihood of an event occurring after taking into consideration new evidence or information.