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If a Government Subsidizes a High-Tech Firm, Which, in Turn

Question 127

Multiple Choice

If a government subsidizes a high-tech firm, which, in turn, allows it to increase sales and profits from international operations by more than the cost of the subsidy:


A) it will be viewed as a strategic policy success.
B) we have to discount any success because of the environmental degradation that always occurs.
C) there will be a negative effect because the government should not and does not subsidize to gain international position for private firms.
D) there could be increased costs in the future.

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