Export subsidies lead to
A)greater production of exportables and higher internal prices for these goods.
B)greater production of exportables and lower internal prices for these goods.
C)greater production of importables and higher internal prices for these goods.
D)None of the above.

Question

Quizplus · Accepted Answer

Export subsidies increase the production of goods destined for export by making it more profitable for producers, and they also tend to increase the internal market price of these goods by reducing their domestic supply.

Export Subsidies Lead to