An Export Subsidy Is

question 44

Multiple Choice

An export subsidy is

• A)a payment to a firm or individual that ships a good abroad.
• B)a limit on the quantity of a good or service that can be sold abroad.
• C)a fee that is charged to a country that ships goods to the U.S.
• D)a payment made to a foreign government in return for preferential trade treatment.
• E)illegal in the U.S.but is fairly common in the rest of the world.

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Definitions:

Agricultural Adjustment Act

A United States federal law of the New Deal era designed to boost agricultural prices by reducing surpluses.

Price Supports

Government interventions to maintain the market prices of agricultural products above equilibrium levels, often through purchasing surpluses or subsidizing costs.

Environmental Pollution

involves the contamination of the natural environment, leading to harmful effects on living beings and ecosystems.

Organic Farming

A method of farming that relies on natural substances and processes to produce crops and livestock, avoiding synthetic fertilizers and pesticides.