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Why Do Economists Disparage Food Aid and Export Subsidies for Low-Income

Question 79

Multiple Choice

Why do economists disparage food aid and export subsidies for low-income nations?


A) They really have to pay in other ways.
B) It always involves middlemen who profit from the transactions.
C) The aid must be paid for by the governments of the poor nations.
D) It prevents their own firms from producing the same products because they cannot compete with foreign low prices; therefore, the most efficient producers are not sellers of the product.

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