Which of the Following Observations About Subsidies Is True

Multiple Choice

Which of the following observations about subsidies is true?

A) Government subsidies must be paid for, typically by taxing individuals and corporations.
B) Subsidies are used to reduce exports from a sector, often for political reasons.
C) Whether subsidies generate national benefits that exceed their national costs is debatable.
D) Subsidies help foreign producers gain a competitive advantage over domestic producers.