Subsidies lead to existence of non-beneficial trades.

Name: Subsidies lead to existence of non-beneficial trades.
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Question

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Subsidies can lead to a situation where producers are encouraged to produce goods even if they are not in demand or are not cost-effective. This results in a situation where resources are allocated to the production of goods that are not beneficial to the society as a whole.

Subsidies Lead to Existence of Non-Beneficial Trades