In the exporting country,an export subsidy will
A)help consumers and raise the overall economic welfare of the exporting country.
B)hurt consumers and lower the overall economic welfare of the exporting country.
C)help consumers and have no effect on the economic welfare of the exporting country.
D)help consumers but lower economic welfare of the exporting country.
E)hurt consumers but raise the overall economic welfare of the exporting country.

Question

Quizplus · Accepted Answer

An export subsidy lowers the price of goods for foreign buyers but raises it for domestic consumers, leading to a welfare loss for the exporting country due to inefficient resource allocation and increased government expenditure.

In the Exporting Country,an Export Subsidy Will