Which of the Following Will Happen When a Small Country

question 77

Multiple Choice

Which of the following will happen when a small country
Enacts an export subsidy?
I.The country will be able to sell more abroad.
II.The domestic price of the subsidized export will increase.
III.The country's demand for the subsidized product will
Increase.

• A)I
• B)I and II
• C)I and III
• D)I, II, and III

Describe the effect of new firms entering or existing firms leaving a purely competitive market on market supply and equilibrium.

Define productive efficiency and its relation to marginal cost and marginal revenue.

Explain the concept of consumer surplus and producer surplus and their changes due to market price shifts.

Understand the concept of creative destruction and its implications for markets and economies.

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Definitions:

Employment

An agreement between an employer and an employee where the employee agrees to perform certain duties in exchange for compensation.

Judicial Decisions

Outcomes of court cases that establish precedents and may guide future legal actions.

Secondary Picketing

Picketing by striking employees not just of their own workplace but also of other locations where the employer carries on business.

Union

An organization formed by workers in various sectors of a community for the purpose of advancing their common interests related to working conditions, wages, and benefits.