An export subsidy can be good for a country if:
A)the subsidy allows the country's only exporting firm to capture the entire world market.
B)the subsidy decreases the export price so that the export quantity increases.
C)the subsidy is offset by a countervailing duty.
D)the international market for the export product is highly competitive.

Question

Quizplus · Accepted Answer

If the subsidy allows the country's only exporting firm to capture the entire world market, it can potentially lead to increased profits and market power for the firm, benefiting the country's economy.

An Export Subsidy Can Be Good for a Country If