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    Question

    Which type of subsidy are categorized under blue

    box?
    A Subsidies which are no or least market distorting Correct Answer Incorrect Answer
    B Only ‘Production limiting Subsidies’ Correct Answer Incorrect Answer
    C Subsidies which are trade distorting Correct Answer Incorrect Answer
    D Both a and b Correct Answer Incorrect Answer

    Solution

    Blue Box – Only ‘Production limiting Subsidies’ under this are allowed. They cover payments based on acreage, yield, or number of livestock in a base year.

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