Export subsidies lead to
A) greater production of exportables and higher internal prices for these goods.
B) greater production of exportables and lower internal prices for these goods.
C) greater production of importables and higher internal prices for these goods.
D) None of the above.
A
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A perfectly competitive firm is currently producing where price is $8 and both marginal cost and average variable cost are $9 . To maximize profit or minimize loss in the short run, this firm should
a. raise its price b. increase its output c. reduce its output d. lower its price e. shut down
Using a toll to reduce traffic when congestion is greatest is an example of a
a. regulation solution. b. command-and-control policy. c. corrective tax. d. Coase theorem solution.
The chain weighted system adjusts price weights every 10 years
Indicate whether the statement is true or false
Firms will sometimes not raise their prices, even when there is a large increase in demand for their products because they fear consumers will consider the price increases unfair.
a. true b. false