Suppose Country a Is a Major Exporter of Limestone in the World

question 20

Multiple Choice

Suppose country A is a major exporter of limestone in the world market. Which of the following policies can be taken by the government of country A to enhance the gains from exporting limestone by raising its world price?

• A)Taxing limestone exports
• B)Subsidizing export of limestone
• C)Subsidizing the extraction of limestone
• D)Setting a price ceiling on the limestone sold in the domestic market

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