The Impact on World Welfare of an Export Subsidy and a Countervailing

question 7

Multiple Choice

The impact on world welfare of an export subsidy and a countervailing duty (of the same size as the subsidy) is:

• A)zero.
• B)negative due to overproduction.
• C)negative due to under-consumption.
• D)negative due to deadweight loss.

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Definitions:

Consent

Agreement or permission given for something to happen or be done, often after consideration and understanding of implications.

Despondent

A state of feeling profound hopelessness, dejection, or despair.

Psychological Issues

Mental health challenges that affect mood, thinking, and behavior.

Coping

The use of strategies to manage stressful or difficult situations, emotions, and thoughts in an attempt to maintain psychological well-being.