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    Principles of Economics Study Set 12
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    Exam 29: International Trade
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    A Subsidy on Exports
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A Subsidy on Exports

Question 41

Question 41

Multiple Choice

A subsidy on exports


A) is less harmful than a tariff.
B) increases the demand for imports.
C) lowers consumer prices and so should be encouraged.
D) increases the supply of exports.
E) imposes no cost on the importing country.

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