If a Large Nation Imposes a Production Subsidy, the Production

question 132

Multiple Choice

If a large nation imposes a production subsidy, the production subsidy:

• A) has more impact on world prices than an export subsidy.
• B) increases exports by more than the export subsidy.
• C) has no measurable effect on prices or exports for a large country.
• D) changes world prices by less and increases exports by less than an export subsidy.

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