Are Total Deadweight Losses of an Export Subsidy of X

question 140

Multiple Choice

Are total deadweight losses of an export subsidy of X dollars per unit different when a large nation and a small nation implement the subsidy?

• A) Yes; total deadweight losses of the subsidy are smaller under the large nation than under the small nation.
• B) Yes; total deadweight losses of the subsidy are larger under the large nation than under the small nation.
• C) No; total deadweight losses of the subsidy are the same regardless of the size of the nation implementing the subsidy.
• D) No; there are no deadweight losses for either nation.

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