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

Understand the factors contributing to productivity growth and their impact on the U.S. economy.

Comprehend the significance of technological advances and their dual impact on labor markets and productivity.

Describe the concept of capital deepening and its relevance to productivity.

Explain the law of diminishing marginal returns and its manifestation in the per-worker production function.

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Definitions:

Market Yield

The annual income return on an investment, expressed as a percentage of the market price.

Face Value

The nominal value printed on a security or financial instrument, such as a bond or stock, at issue.

Convertible Bond

A type of corporate bond that can be converted into a predetermined number of the company's equity shares at certain times during its life, usually at the discretion of the bondholder.

Conversion Premium

The additional cost over the current price that one pays to convert a convertible security into stock.