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Scenario: Montesia Is Predominantly a Producer and Exporter of Manufactured

Question 141

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Scenario: Montesia is predominantly a producer and exporter of manufactured goods. However, it imports several agricultural products.
-Refer to the scenario above.Recently,the government of Montesia has provided an export subsidy for some cash crops.Which of the following is likely to occur in this case?


A) The government's revenue will increase.
B) The volume of exports of cash crops will increase.
C) The domestic producers of cash crops will be worse off.
D) The domestic consumers of cash crops will be worse off.

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