Identify the Correct Statement About Subsidies

question 66

Multiple Choice

Identify the correct statement about subsidies.

• A)It decreases the gains from trade in terms of world output.
• B)It is a barrier to international trade.
• C)With subsidies, producers export goods in which they have a comparative advantage.
• D)It transfers income from exporters to taxpayers.
• E)It reduces the cost of production of goods.

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Definitions:

Trace Memory

A faint or residual memory that remains after the initial memory fades, sometimes hard to consciously recall without cues.

Sensory

Relating to sensation or the physical senses; transmitted or perceived by the senses.

Short-Term

Short-term usually describes a limited period or duration, often referring to memory, where it indicates the capacity to hold small amounts of information in an active, readily available state for a brief period of time.

Long-Term

Relating to, covering, or extending over a long period of time.