Suppose France subsidizes French wheat farmers, while Germany offers no subsidy to German wheat farmers. As a result of the French subsidy, sales of French wheat to Germany
a. may prompt German farmers to invoke the unfair-competition argument.
b. increase the consumer surplus of German buyers of wheat.
c. increase the total surplus of the German people.
d. All of the above are correct.
d
You might also like to view...
Who knows how to measure the true cost of a pint of B-positive blood?
A) An economist B) A clerk at the blood bank C) Only the Surgeon General of the United States D) Any competent medical authority E) None of the above.
The Ii = S equation describes
a. an economy in macroequilibrium b. what producers do; they invest their savings c. an economy that isn't in equilibrium because the critical equation expressing equilibrium—Ii = Ia—is missing d. the coincidence between aggregate investment and aggregate saving e. the surplus associated with intended investment