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When a Company or Industry Is Subsidized Because It Is

Question 12

Multiple Choice

When a company or industry is subsidized because it is not profitable,a secondary effect of the subsidies will likely be that


A) jobs will be saved,so the subsidies will promote economic efficiency.
B) resources that are used unproductively will remain in low productivity areas.
C) the company or industry will stabilize and become profitable.
D) the subsidies will direct resources toward highly productive projects.

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