In General, an Export Subsidy

question 24

Multiple Choice

In general, an export subsidy:

• A) discourages foreign sales in favor of domestic sales.
• B) encourages firms to export rather than sell domestically.
• C) penalizes producers that export.
• D) justifies government involvement in helping firms export.

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Definitions:

Ozone Layer

A stratospheric layer of ozone molecules that protects life on Earth by absorbing the majority of the sun's harmful ultraviolet radiation.

Troposphere

The lowest layer of Earth's atmosphere where weather occurs and where most aviation takes place.

Stratosphere

The layer of the Earth's atmosphere above the troposphere, extending from about 10 to 50 km above the Earth's surface, where ozone is concentrated.

Volatile Organic Compound

Organic chemicals that have a high vapor pressure at ordinary room temperature, causing significant vapor emissions that can affect air quality and human health.