An Export Subsidy Will Cause the Relative Demand for ________

question 46

Multiple Choice

An export subsidy will cause the relative demand for ________ to ________ and the relative supply for ________ to ________.

• A) exports; decrease; exports; increase
• B) imports; decrease; imports; increase
• C) imports; increase; imports; decrease
• D) exports; increase; exports; decrease
• E) exports; increase; imports; decrease

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Definitions:

Inventory Turnover

A measure of how many times a company's inventory is sold and replaced over a period.

Days' Sales Uncollected

A financial metric that measures the average number of days it takes a company to collect payment after a sale has been made.

Days' Sales In Inventory

A financial metric that estimates how many days it will take to sell the entire inventory, indicating the liquidity of inventory.

Profit Margin

A financial metric that measures the extent to which a company or business activity makes money, expressed as a percentage of revenue.