From the perspective of the American public as a whole, export subsidies levied by overseas governments on goods sold to the United States ?
Correct answer: A. help more than they hurt
- A. help more than they hurt
- B. hurt more then they help
- C. are equivalent to an import quota
- D. are equivalent to an export quota
Explanation
A foreign export subsidy lowers the price paid by American consumers, increasing their consumer surplus. Although U.S. producers lose, the consumer gain generally exceeds the producer loss, so the American public benefits overall.
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