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  1. Which one of the following institutions is related with the Green / Blue Box subsidies ?
    1. United Nations
    2. World Bank
    3. World Tourism Organization
    4. World Trade Organization
Correct Option: D

In order to qualify for the "green box", a subsidy must not distort trade, or at most cause minimal distortion. These subsidies have to be government-funded (not by charging consumers higher prices) and must not involve price support. The blue box is an exemption from the general rule that all subsidies linked to production must be reduced or kept within defined minimal ("de minimis") levels. It covers payments directly linked to acreage or animal numbers, but under schemes which also limit production by imposing production quotas or requiring farmers to set aside part of their land.



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