One of the negative impacts of export subsidy is that:
a. the price of the domestic good increases in the world market.
b. the domestic supply of the goods increases more than proportionately than increase in demand.
c. the domestic cost of production of the exportable increase.
d. it results in a general deflation and hence the domestic producers incur losses.
e. the domestic consumers are harmed as the subsidies are financed by taxing them.
e
You might also like to view...
When does the Fed lend through discount windows?
What will be an ideal response?
Other things remaining the same, an increase in the price level
A) decreases the quantity of real GDP supplied. B) decreases aggregate supply. C) increases aggregate supply. D) increases the quantity of real GDP supplied. E) neither changes aggregate supply nor changes the quantity of real GDP supplied.
In international trade, an infant industry is one:
A. that protects firms that produce products for infants. B. with a large number of very small firms. C. in which the firms are experiencing very small profits. D. in the early stages of its development.
In perfect competition, if there are no barriers to entry, only the lowest-cost businesses will survive in the long run.
Answer the following statement true (T) or false (F)