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.