Direct subsidies to agriculture, whether they are export subsidies or production subsides, are viewed as harmful because of all the following reasons EXCEPT
A) they lead to overproduction.
B) they crowd out imports.
C) they can lead to dumping of surplus production.
D) they encourage overconsumption through low market prices.
D
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Suppose that a price-discriminating firm divides its market into two segments. If the firm sells its product for a price of $22 in the market segment where demand is relatively less elastic, the price in the market segment whose customers' demand is more elastic will be
a. $22. b. greater than $22. c. less than $22. d. $22 plus average fixed costs
Recurrent Funding
What will be an ideal response?
A Chinese restaurant buys 10 cups of rice for $1; soy, fish and oyster sauces for $1 each; and assorted vegetables for $20. They create 10 meals with these ingredients and sell each one for $5. How much does this process contribute to GDP?
A. $27 B. $23 C. $73 D. $50
To be able to engage in profit-maximizing price searching, a monopoly firm must be able to
A. induce the entry of other firms into the market for its product. B. always earn zero economic profits. C. prevent the entry of other firms into the market for its product. D. avoid earning negative economic profits in the short run.