Answer the following statements true (T) or false (F)
1.A subsidy granted to import-competing producers is intended to lead to increased domestic production and decreased imports for the home country.
2.A subsidy granted to an import-competing producer shifts its supply schedule outward to the right.
3.A subsidy granted to an import-competing producer imposes a deadweight loss on the domestic economy equal to the redistribution effect plus consumption effect.
4.A subsidy granted to import-competing producer reduces overall domestic welfare by the same amount as would a tariff or quota that restricts imports by the same amount.
5.To the extent that subsidies granted to exporting firms reduce the foreign price of their goods, the subsidizing country's terms of trade worsen.
1.True
2.True
3.False
4.False
5.True
You might also like to view...
In the table above, the equilibrium exchange rate is shown as
The next five questions refer to the table below, which shows the supply and demand schedules of British pounds. Exchange Rate: Quantity of Pounds Supplied Dollars Per Pound Quantity of Pounds Demanded 100 $2.50 20 80 2.00 40 60 1.50 60 40 1.00 80 20 0.50 100 a. $2.50 per pound. b. $2.00 per pound. c. $1.50 per pound. d. $1.00 per pound.
The balance sheet is a statement that summarizes revenues and expenses for a period
a. True b. False Indicate whether the statement is true or false
Which of the following factors forms the basis of assessing sponsorship activities through supply-side methods?
A) consumers' brand knowledge B) impact on sponsor's bottom line C) extent of media coverage D) brand exposure reported by consumers E) sales pattern of sponsored products
Liability is imposed on an agent who has exceeded his authority on the basis of an implied warranty of merchantability.
Answer the following statement true (T) or false (F)