Which of the following statements is incorrect regarding the nature of subsidies?
A. Implicit subsidies include utilization of such techniques as exchange rate manipulation, price controls, and quantitative restrictions on trade, as well as other methods of manipulating the terms of trade either for or against farmers.
B. Explicit agricultural subsidies include such programmes as government purchases of agricultural surpluses and government payments to farmers to keep land idle.
C. In case of explicit subsidy, there are governmental budgetary outlays while in case of implicit subsidy, supply prices are suppressed.
D. In case of implicit subsidy, there are governmental budgetary outlays while in case of explicit subsidy, supply prices are suppressed.
Answer:D
Which of the following statements is incorrect regarding the nature of subsidies?
A. Implicit subsidies include utilization of such techniques as exchange rate manipulation, price controls, and quantitative restrictions on trade, as well as other methods of manipulating the terms of trade either for or against farmers. B. Explicit agricultural subsidies include such programmes as government purchases of agricultural surpluses and government payments to farmers to keep land idle. C. In case of explicit subsidy, there are governmental budgetary outlays while in case of implicit subsidy, supply prices are suppressed. D. In case of implicit subsidy, there are governmental budgetary outlays while in case of explicit subsidy, supply prices are suppressed.