When the Government Levies Taxes to Subsidize the Producers of Corn-Based

Multiple Choice

When the government levies taxes to subsidize the producers of corn-based sugar, the subsidies will

A) expand the output of a good that consumers value highly relative to cost.
B) expand total employment if employment in the production of corn increases.
C) increase net employment and improve the efficiency of resource use.
D) exert little impact on net employment because expansion of employment in corn production will be partially offset by less employment in other sectors as the result of the taxes.