The Imposition of a Subsidy Rather Than a Tariff Will

question 54

Multiple Choice

The imposition of a subsidy rather than a tariff will:

• A) reduce domestic supply and increase imports.
• B) prevent a price increase for the domestic consumers.
• C) have no affect on government revenue.
• D) shift the domestic supply curve upwards.

---

Definitions:

Real Property

Land and everything permanently attached to it.

Lease Contracts

Agreements in which one party grants another the use of property, equipment, or premises for a specified period in exchange for rental payments.

Sales Contracts

Legal agreements between buyers and sellers detailing the terms of sale and purchase of goods or services.

Federal Law

Legislation enacted by the federal government of a country, applicable nationwide and superseding local state laws in matters of national importance.