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Which of the Following Statements Is Correct for a Specific

Question 15

Multiple Choice

Which of the following statements is correct for a specific good or service?


A) Whoever pays for a subsidy also pays the entire commodity tax on an item.
B) Whoever bears the burden of a tax also receives the benefit of the subsidy.
C) Whoever bears the burden of a tax also bears the cost of the subsidy.
D) Governments bear the burdens of both taxes and subsidies.

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