(Figure: Home's Exporting Industry II) the Graph Shows the Effect

question 110

Multiple Choice

(Figure: Home's Exporting Industry II) The graph shows the effect of a subsidy on a large country. D describes home demand and S describes home supply. According to the graph, which of the following will help the large country avoid the deadweight loss from the $100 export subsidy?

• A) impose a tariff
• B) impose a quota
• C) provide cash to developing countries to purchase the product from the home country
• D) impose trade restrictions

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Definitions:

Emissions

The release of pollutants into the air from various sources, including factories, vehicles, and industrial processes.

Invariant

A property or quantity that remains unchanged under certain conditions or transformations, frequently discussed in mathematics and physics.

Production Material

Raw materials and components used in the manufacturing process to create finished goods.

Value/Cost Scale

A measure or evaluation of the worth of a product or service in comparison to its cost, aiding in assessing its profitability or market value.