Which of the Following Is True of an Export Subsidy

question 15

Multiple Choice

Which of the following is true of an export subsidy?

• A)It increases the net welfare in an economy and accelerates economic progress.
• B)It slows economic progress and reduces the net welfare in an economy.
• C)It gives rise to unsustainable government deficits.
• D)It promotes free international trade.
• E)It specifies that a certain portion of a final good must be produced domestically.

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