Which of the Following Is False with Reference to Subsidies

question 73

Multiple Choice

Which of the following is false with reference to subsidies?

• A)​They reduce the cost of production.
• B)​They transfer the income from tax payers to the exporters.
• C)​They mean the nation is exporting products in which it does not have comparative advantage.
• D)​They can lead to inefficiencies.

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Definitions:

Between

in the interval separating (two points, objects, or times).

Prefix

An affix placed before the stem of a word to modify its meaning, such as "un-" in "unhappy" or "pre-" in "preview."

Before

Prior to in time or order.

Dis-

A prefix indicating separation, removal, or negation.