For a Small Nation Employing a Production Subsidy, Domestic Producers

question 73

Multiple Choice

For a small nation employing a production subsidy, domestic producers get a payment for every good produced, and domestic consumers:

• A) purchase the product at the world price the same as before the subsidy.
• B) pay a higher price for the product.
• C) pay a reduced price for the product.
• D) purchase more of the product.

---

Definitions:

Quarterly

Occurring every three months or four times a year.

Annuity

An investment vehicle that provides a consistent series of disbursements to a person, often employed in retirement planning.

RRSP

A registered retirement savings plan, a tax-advantaged account designed to help Canadians save for retirement.

Compounded

The process by which interest is earned on both the initial principal and the interest that has been added to it, thus "compounding" the amount.