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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Definitions:

Ownership and Control

The legal rights to possess, use, and manage assets or property, and the ability to direct the operations and activities of an entity or resource.

Limited Liability

A legal structure that limits the financial liability of investors or owners to the amount they have invested in a company, protecting personal assets.

Transferability of Ownership

The capability to legally transfer the title or ownership of an asset or property from one entity to another.

Sole Proprietorship

A business structure in which a single individual owns and operates the business, bearing sole responsibility for its debts and obligations.