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If a Subsidy Was Imposed on an Industry Whose Production

Question 255

Multiple Choice

If a subsidy was imposed on an industry whose production imposed external benefits on others, then the goods' consumers of the good would be ____ and the result would be a(n) ____ in efficiency.


A) ​better off; increase.
B) ​better off; decrease.
C) ​worse off; increase.
D) ​worse off; decrease.

Correct Answer:

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