Consumers in a protected market pay more at the till, and no money passes through the treasury. That makes the support:
AA payroll tax break
BA public bond issue
CAn indirect subsidy
DA direct cash grant
Answer & Solution
Correct answer: C. An indirect subsidy
1. Taxpayers are not billed for it.
2. Higher prices carry the cost.
3. It is an indirect subsidy.
_Source: OpenStax Principles of Economics 3e, Chapter 34, Globalization and Protectionism._
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