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.

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