A. Shifts the supply curve
B. shifts the demand curve
C. Leads to a contractions in supply
D. Leads to an extension of supply
Related Mcqs:
- To aid its calculator producers, suppose that the government provides them a subsidy of $10 for each calculator produced The amount of imports now equals _____ and the deadweight loss of the subsidy to the Canadian economy equals _________?
A. 20 calculator, $50
B. 20 calculator, $100
C. 25 calculator, $50
D. 25 calculator, $100 - Government granted monetary assistance to a person or a group in support of an enterprise regarded as being in public interest. This is called subsidy. Point out the statement which is also a subsidy ?
A. Financial assistance given by one person or government to another
B. Financial assistance given to poor people
C. Financial assistance given to aged people
D. Financial assistance given to small companies - If the home country government grants a subsidy on a domestically produced good domestic producers tend to ?
A. Capture the entire subsidy in the form of higher profits
B. Increase their level of production
C. reduce wages paid to domestic workers
D. consider the subsidy as a increase in production cost - To help its firms penetrate Mexico’s radio market suppose the Japanese government provides them a subsidy of $15 for each radio shipped to Mexico As a result of this trade policy ?
A. The price of radios in Mexico equals $60 and its imports equal 30 radios
B. The price of radios in Mexico equals $30 and its imports equal 30 radios
C. The price of radios in Mexico equals $40 and its imports equals 20 radios
D. Th price of radios in Mexico equals $20 and its imports equal 40 radios - Compared to what occurred under free trade, Mexico’s producer surplus ____ and consumer surplus ____ as a result of the subsidy Use the figure that you have plotted to calculate the amounts ?
A. decreases, decreases
B. decreases, increases
C. increases, decreases
D. increases, increases - A production subsidy that is granted to a producer of an import-competing good ?
A. does not require government taxes to finance it
B. yields the same deadweight welfare loss as an import tariff or import quota
C. has only a consumption effect deadweight loss
D. has only a protective effect deadweight loss - Goals are achieved through ____ such a monetary fiscal, exchange rate tariff tax subsidy, business incentive foreign investment and foreign aid?
A. indicative plan
B. central bank policies
C. central planning
D. instrument variables - An export subsidy should have the opposite effect of ?
A. A government budget deficit
B. Capital flight
C. An increase in Private saving
D. A tariff - What is called the advocacy of protecting domestic producers by impeding or limiting the importation of foreign goods and services ?
A. Domestication
B. Protectionism
C. Localization
D. National interest - When producers, wholesalers, and retailers act as a unified system they comprise a ?
A. conventional marketing system
B. power-based marketing system
C. horizontal marketing system
D. vertical marketing system
