A Subsidy on Exports

question 41

Multiple Choice

A subsidy on exports

• A)is less harmful than a tariff.
• B)increases the demand for imports.
• C)lowers consumer prices and so should be encouraged.
• D)increases the supply of exports.
• E)imposes no cost on the importing country.

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Definitions:

Mobiles

Portable electronic devices with connectivity capabilities, such as smartphones and tablets, used for communication and information access.

Welfare Benefits

Government-provided support to individuals or families, especially those with low incomes, in the form of financial aid or services.

Gross Private Domestic Investment

The total capital investment in an economy by private sector entities, excluding government spending.

Durable Goods

Goods not for immediate consumption that can be used over a period of time, such as appliances, cars, and furniture.