An Export Subsidy Can Be Good for a Country If

question 22

Multiple Choice

An export subsidy can be good for a country if:

• A)the subsidy allows the country's only exporting firm to capture the entire world market.
• B)the subsidy decreases the export price so that the export quantity increases.
• C)the subsidy is offset by a countervailing duty.
• D)the international market for the export product is highly competitive.

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Definitions:

Hourly Rate

Payment amount set for one hour of work, often used to calculate earnings for part-time or contract positions.

Per Kilometer Rate

A price or cost applied for each kilometer traveled, often used in contexts such as shipping, transportation, and delivery services.

Stock Market Index

A statistical measure that shows changes occurring in the stock market by tracking selected stocks.

Decreased

Reduced or diminished in size, quantity, or level.