If Japan subsidised the production of rice and then exported the rice to Australia at artificially low prices, then the Australian economy would be worse off.

Question

Quizplus · Accepted Answer

Subsidizing rice production in Japan and exporting it to Australia at artificially low prices could benefit Australian consumers through lower prices and increased variety, although it may negatively impact Australian rice producers by making it harder for them to compete. The overall effect on the Australian economy would depend on the balance between consumer benefits and producer losses.

If Japan Subsidised the Production of Rice and Then Exported