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Which of the Following Statements Is NOT True Regarding Subsidies

Question 38

Multiple Choice

Which of the following statements is NOT true regarding subsidies?


A) Subsidies are like taxes in that they create deadweight loss.
B) Subsidies are like taxes in that they reduce sales of the subsidized good.
C) Subsidies are unlike taxes in that they increase sales of the subsidized good.
D) Subsidies are unlike taxes in that they reduce the price that buyers pay for a good.

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