Governments Sometimes Subsidize Domestic Industries.When This Occurs

question 30

Multiple Choice

Governments sometimes subsidize domestic industries.When this occurs,

• A)the governments also impose tariffs on imports to protect the industries even more.
• B)the subsidized industries have an advantage on international markets relative to non-subsidized industries.
• C)firms cannot be guilty of dumping because their prices are not below their costs.
• D)the subsidized industries sell less in international markets because it is more profitable to sell domestically.

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