An Export Subsidy Differs from a Tariff in Each of the Following

question 40

Multiple Choice

An export subsidy differs from a tariff in each of the following ways EXCEPT

• A) a tariff generates revenue.
• B) a tariff is applied to imports.
• C) a tariff results in an efficiency loss.
• D) a tariff is a tax.
• E) a tariff discourages imports.

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Definitions:

Wavelength

The distance between consecutive crests or troughs in a wave, often used in the context of electromagnetic radiation.

Electromagnetic Radiation

Energy that travels through space in the form of waves, encompassing a broad spectrum from radio waves to gamma rays.

Absorption

The process by which one substance takes up or holds another substance at the interface between them or within its internal structure.

Photon Energy

The energy carried by a single photon, proportional to its frequency and inversely proportional to its wavelength.