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How do subsidies distort trade patterns and lead to inefficiencies?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter34: Globalization And Protectionism

Section: Chapter Questions

Problem 42CTQ: How would direct subsidies to key industries be preferable to tariffs or quotas?

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5. How do subsidies distort trade patterns and lead to inefficiencies?

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