MCQOPTIONS
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| 1. |
If the home country government grants a subsidy on a domestically produced good domestic producers tend to ? |
| A. | Capture the entire subsidy in the form of higher profits |
| B. | Increase their level of production |
| C. | reduce wages paid to domestic workers |
| D. | consider the subsidy as a increase in production cost |
| Answer» C. reduce wages paid to domestic workers | |