An Export Subsidy Is a Payment by the Government to Exporters

question 90

True/False

An export subsidy is a payment by the government to exporters to permit them to charge lower prices.

---

Definitions:

Price-Support Program

Government policies designed to maintain the price of a commodity at a certain level through subsidies or purchase of the market surplus.

Price Supports

Government interventions to maintain the market price of a commodity at a certain level to protect producers from market fluctuations.

Price Floor

A government or regulatory-imposed minimum price for a commodity or service, intended to prevent the market price from falling below a certain level.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or commodity, usually intended to protect consumers.