Consumer subsidies are not unique to developing countries; although they are in many ways costly,governments are reluctant to eliminate them because such action typically leads to:
A) deflation.
B) neutral taxes.
C) demonstrations or even riots against the government.
D) the emergence of corporatism.

Question

Quizplus · Accepted Answer

Consumer subsidies, while costly, are often popular with the general public who benefit from them. Eliminating these subsidies can lead to public outcry, demonstrations and even riots against the government, as it's seen as taking away a valuable benefit. Governments are often reluctant to take this step for political reasons, even if it would be economically rational to do so.

Consumer Subsidies Are Not Unique to Developing Countries; Although They