When a Country Provides a Subsidy to a Home Producer

question 125

Multiple Choice

When a country provides a subsidy to a home producer, it:

• A) causes the consumer surplus to decline.
• B) causes the producer surplus to decline.
• C) causes government cost to decline.
• D) causes no change in the consumer surplus.

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Definitions:

Pro-Immigration

An attitude or policy stance that supports or favors the entrance of immigrants into a country.

Slaveholders

Individuals or entities that owned slaves, typically in historical contexts where slavery was legally practiced.

Slaves

Individuals who are legally owned by others and forced to work without the right to freedom or compensation.

Religion

A set of spiritual beliefs, practices, and values that individuals or communities follow, often centered around a deity or moral philosophy.