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:

Dutch

Relating to the Netherlands, its people, or their language.

Trading Partners

Countries or entities that engage in the exchange of goods, services, and/or capital with one another.

English

Relates to the language originating from England, now widely spoken globally as a first or second language.

Puerto Rico

A Caribbean island and unincorporated territory of the United States with its distinct culture, history, and political status debates.