Governments Sometimes Subsidize Domestic Industries. When This Occurs

question 66

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 in 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.

---

Definitions:

Better View

An improved or more favorable perspective or visual outlook on something or from a specific location.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable change in a model.

Causes

Factors or events that bring about an effect or a change.

Fallacy Of Composition

The incorrect belief that what is true for an individual member of a group is necessarily true for the group as a whole.