An Export Subsidy Has a Similar Effect as a Tariff

question 24

Multiple Choice

An export subsidy has a similar effect as a tariff for a small
Nation.What is the effect of an export subsidy for a large
Nation?

• A)Losses are greater for the large nation than for the small nation because of the cost of the subsidy to the home
• Government.
• B)Losses are lower for the large nation than for the small nation.
• C)It is beneficial for the large nation but not for the small nation.
• D)It is beneficial for consumers but harmful for firms in the large nation.

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Definitions:

Proactive Interference

The phenomenon where old memories make it more difficult to learn and remember new information.

Cue-dependent Forgetting

The failure to recall information in the absence of specific cues or conditions that were present at the time of memory encoding.

Decay

The process through which information is lost over time when it is not used or rehearsed.

Proactive Interference

A phenomenon where older information prevents the recall of newer information, impacting memory retention.