Which of the following statements is NOT true regarding subsidies?
A) Similar to a tax, a subsidy also creates a deadweight loss.
B) The main beneficiary of a subsidy is the party that directly receives the check from the government.
C) Subsidies create inefficient increases in trade.
D) When a subsidy is present, the price received by sellers exceeds the price paid by buyers.
Correct Answer:
Verified
Q147: Use the following to answer questions:
Figure: Demand
Q148: Unlike price floors, subsidies:
A) cause surpluses.
B) discourage
Q149: Use the following to answer questions:
Figure: Demand
Q150: A government's decision to subsidize the production
Q151: A subsidy causes deadweight loss:
A) only because
Q153: Use the following to answer questions:
Figure: Demand
Q154: Which one of the following statements about
Q155: Use the following to answer questions:
Figure: Supply
Q156: If instead of a per-unit subsidy, the
Q157: Which of the following statements is correct?
A)
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