When exports are subsidized, _____. a. the amounts of actual labor, raw material, and capital costs of production decrease b. nations export products in which they have a comparative advantage c. gains from trade in terms of world output increase d. nations export products in which they have an absolute advantage e. income is transferred from tax payers to the exporters of subsidized goods
When exports are subsidized, _____. a. the amounts of actual labor, raw material, and capital costs of production decrease b. nations export products in which they have a comparative advantage c. gains from trade in terms of world output increase d. nations export products in which they have an absolute advantage e. income is transferred from tax payers to the exporters of subsidized goods
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter34: Globalization And Protectionism
Section: Chapter Questions
Problem 2SCQ: Explain how a subsidy on agricultural goods like sugar adversely affects the income of foreign...
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Question
When exports are subsidized, _____.
a. |
the amounts of actual labor, raw material, and capital costs of production decrease
|
|
b. |
nations export products in which they have a
|
|
c. |
|
|
d. |
nations export products in which they have an
|
|
e. |
income is transferred from tax payers to the exporters of subsidized goods
|
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