An export subsidy differs from a tariff in each of the following ways EXCEPT
A)a tariff is applied to imports.
B)a tariff results in an efficiency loss.
C)a tariff discourages imports.
D)a tariff is a tax.
E)a tariff generates revenue.

Question

Quizplus · Accepted Answer

Both export subsidies and tariffs can result in efficiency losses, as they both distort market outcomes and lead to a misallocation of resources.

An Export Subsidy Differs from a Tariff in Each of the Following