Which One of the Following Statements About Subsidies Is NOT

question 81

Multiple Choice

Which one of the following statements about subsidies is NOT correct?

• A) Subsidies cause deadweight losses.
• B) Who actually receives the subsidy does not depend on who gets the check from the government.
• C) Subsidies always increase the gains from trade for producers.
• D) Who benefits from the subsidy depends on the relative elasticities of demand and supply.

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