Multiple Choice
Which one of the following statements about subsidies is NOT correct?
A) Subsidies cause deadweight losses.
B) Who actually receives the subsidy does not depend on who gets the check from the government.
C) Subsidies always increase the gains from trade for producers.
D) Who benefits from the subsidy depends on the relative elasticities of demand and supply.
Correct Answer:
Verified
Correct Answer:
Verified
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