One of the Negative Impacts of Export Subsidy Is That

question 68

Multiple Choice

One of the negative impacts of export subsidy is that:

• A)the price of the domestic good increases in the world market.
• B)the domestic supply of the goods increases more than proportionately than increase in demand.
• C)the domestic cost of production of the exportable increase.
• D)it results in a general deflation and hence the domestic producers incur losses.
• E)the domestic consumers are harmed as the subsidies are financed by taxing them.

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Definitions:

Boosting Morale

Activities or actions taken to improve the spirit, confidence, or enthusiasm of a group or an individual.

Group Spirit

The sense of solidarity, enthusiasm, and loyalty shared by members within a group, team, or community.

Deliberate

To think about or discuss something very carefully in order to make a decision.

Controlled Mind

The state of consciously regulating thoughts, emotions, and actions through mental processes and self-discipline.