Economists generally prefer the use of subsidies instead of protective tariffs because:

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Economists generally prefer the use of subsidies instead of protective tariffs for the reasons stated in options A, B, and C. Subsidies create smaller deadweight losses compared to protective tariffs because they provide financial assistance directly to the domestic producers instead of raising prices for consumers. Subsidies can also be targeted more carefully to specific industries or firms that need support, whereas protective tariffs apply to all imports in a particular industry. Lastly, the visible cost of subsidies creates an automatic incentive to phase out protection, as the cost is more apparent and tangible compared to the indirect costs of tariffs.

Economists Generally Prefer the Use of Subsidies Instead of Protective