Suppose That the World Price of Sugar Is $100 Per

question 68

Multiple Choice

Suppose that the world price of sugar is $100 per ton.If a
Large country gives its sugar exporters a subsidy of $50 per
Ton, then its domestic price of sugar will:

• A)fall by $50 per ton.
• B)rise by $50 per ton.
• C)remain unchanged at $100 per ton.
• D)rise by less than $50 per ton.

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Definitions:

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time, typically measured annually.

Profits

The financial gains obtained when revenue from business activities exceeds expenses, costs, and taxes.

Expected Rate Of Return

The predicted amount of return a given investment is anticipated to earn over a specified period.

Total Investment

The aggregate amount of funds invested in an economy by businesses and individuals, including investments in capital assets and inventories.