601EconomicsMedium
A production subsidy that is granted to a producer of an import-competing good?
Ayields the same deadweight welfare loss as an import tariff or import quota
Bhas only a protective effect deadweight loss
Chas only a consumption effect deadweight loss
Ddoes not require government taxes to finance it
Correct answer
B. has only a protective effect deadweight loss
Explanation
The correct answer is has only a protective effect deadweight loss.