Is there any disadvantage to a government subsidizing domestic firms to make them able to compete in price with cheaper imported goods?
No, it helps domestic consumers, firms, and workers.
No, the only ones who suffer are the foreign firms.
Yes, consumers must pay higher prices.
Yes, consumers must pay higher taxes.

Question

Is there any disadvantage to a government subsidizing domestic firms to make them able to compete in price with cheaper imported goods?
No, it helps domestic consumers, firms, and workers.
No, the only ones who suffer are the foreign firms.
Yes, consumers must pay higher prices.
Yes, consumers must pay higher taxes.

anonymous · Answer

Yes, consumers must pay higher taxes.?

anonymous · Answer

Correct!