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:

Company's Assets

A company's assets are resources owned by the company that have economic value and can be used to meet its debts, commit to spending, or invest in future business activities.

Budgeted Balance Sheet

A budgeted balance sheet is a financial statement that projects the financial position of a company at a future point in time, detailing assets, liabilities, and equity based on anticipated financial activities.

Financial Budgets

Projections of a company's income, expenditures, and capital needs, used to manage spending and achieve financial goals.

Capital Expenditures Budget

A budget allocation for purchasing and investing in long-term assets and projects.