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    Modern Principles Microeconomics
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    Exam 6: Taxes and Subsidies
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    Unlike Price Floors, Subsidies
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Unlike Price Floors, Subsidies

Question 37

Question 37

Multiple Choice

Unlike price floors, subsidies:


A) cause surpluses.
B) discourage firms from producing.
C) do not create surpluses.
D) create shortages.

Correct Answer:

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