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In the Case of Declining Industries,wage Subsidies or Special Tax

Question 104

Multiple Choice

In the case of declining industries,wage subsidies or special tax breaks that decline over time:


A) can be more efficient than tariffs.
B) are permanent import restrictions.
C) can result in increasing shocks in the economy.
D) equal or exceed the direct welfare loss from tariffs.
E) result from diseconomies of scale.

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