Management Notes

Reference Notes for Management

A production subsidy that is granted to a producer of an import-competing good

A production subsidy that is granted to a producer of an import-competing good

A production subsidy that is granted to a producer of an import-competing good

 Options:

a. does not require governmental taxes to finance it
b. yields the same deadweight welfare loss as an import tariff or import quota
c. has only a consumption effect deadweight loss
d. has only a protective effect deadweight loss

The Correct Answer Is:

d. has only a protective effect deadweight loss

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