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Question #48724

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

Options:

A) does not require government 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

Answer: A production subsidy that is granted to a producer of an import-competing good has only a protective effect deadweight loss.

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