If the home country government grants a subsidy on a domestically prod – McqOptions

MCQOPTIONS

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

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