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Direct Subsidies to Agriculture, Whether They Are Export Subsidies or Production

Question 23

Multiple Choice

Direct subsidies to agriculture, whether they are export subsidies or production subsides, are viewed as harmful because of all the following reasons EXCEPT


A) they lead to overproduction.
B) they crowd out imports.
C) they can lead to dumping of surplus production.
D) they encourage overconsumption through low market prices.

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