Suppose that a large country decides to reduce its
Agricultural export subsidies by 50%.Will the country gain
Or lose?
A)The country will always gain by reducing its subsidies.
B)The country will always lose by reducing its subsidies.
C)The country will gain if the reduction in its deadweight losses exceeds its termsoftrade gains.
D)The country will gain if its termsoftrade gains exceed the reduction in its deadweight losses.

Question

Suppose that a large country decides to reduce its
Agricultural export subsidies by 50%.Will the country gain
Or lose?
A)The country will always gain by reducing its subsidies.
B)The country will always lose by reducing its subsidies.
C)The country will gain if the reduction in its deadweight losses exceeds its terms­of­trade gains.
D)The country will gain if its terms­of­trade gains exceed the reduction in its deadweight losses.

Quizplus · Accepted Answer

The Answer of Suppose that a large country decides to reduce its
Agricultural export subsidies by 50%.Will the country gain
Or lose?
A)The country will always gain by reducing its subsidies.
B)The country will always lose by reducing its subsidies.
C)The country will gain if the reduction in its deadweight losses exceeds its terms­of­trade gains.
D)The country will gain if its terms­of­trade gains exceed the reduction in its deadweight losses.

Suppose That a Large Country Decides to Reduce Its