"Farm subsidies in the European Union spill over to the rest of the world." Explain this assertion
What will be an ideal response?
Farm subsidies in the European Union lower the price at which European farmers can offer their output for sale on the world market, which lowers the price in the rest of the world. Faced with lower prices, farmers in other countries decrease production and receive smaller revenues.
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Voluntarism often has proved to be weak and unreliable. Does it still have a place in controlling activities that damage the environment?
What will be an ideal response?
Suppose this year Angola borrows $100 million from foreign countries, while it lends $15 million to other countries. Angola definitely is a
A) net borrower. B) net lender. C) creditor nation. D) debtor nation.
Refer to Figure 19-7. Which of the following is true?
A) Indian exports to the United States are more expensive at exchange rates greater than $.02/rupee than at the equilibrium exchange rate. B) U.S. imports are more expensive at exchange rates greater than $.02/rupee than at the equilibrium exchange rate. C) To achieve an exchange rate greater than $.02/rupee, the Reserve Bank of India must buy surplus dollars with rupees. D) The rupee is overvalued at exchange rates less than $.02/rupee.
An increase in the marginal propensity to consume will result in a(n): a. steeper consumption function
b. flatter consumption function. c. upward shift of the consumption function. d. downward shift of the consumption function.