Suppose That the World Price of Sugar Is $100 Per

question 74

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 it will:

• A)enjoy a gain in its total welfare.
• B)have neither a loss nor a gain in its total welfare.
• C)suffer a loss in its total welfare.
• D)have an increase in its consumer surplus only.

---

Definitions:

Temporal Sequence

The chronological order in which events or actions occur, emphasizing the importance of timing in understanding cause and effect.

External Validity

The judgment that a research finding can be generalized to other people, in other settings, at other times.

Independent Variable

In an experimental setting, the variable that is manipulated or changed to examine its effect on a dependent variable.

Causal Order

The sequence in which cause and effect events occur, indicating a relationship where one action or event directly influences another.