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.

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Definitions:

Regulated Monopolies

Market situations in which local, state, or federal government grants exclusive rights in a certain market to a single firm.

Economic Recession

a period of temporary economic decline characterized by a decrease in GDP, income, employment, and trade, typically lasting from six months to a year.

Communism

Economic system in which all property would be shared equally by the people of a community under the direction of a strong central government.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information, leading to firms being price takers.