How is a production subsidy different from an export
Subsidy?
A)It is applied only to production sold within the nation.
B)It is applied to all production and imports-everything consumed in the nation.
C)It is a payment from government to all domestic production-not only to units exported.
D)It kicks in when the export subsidy runs out.

Question

Quizplus · Accepted Answer

A production subsidy is a payment from the government to all domestic production, not just to units that are exported, whereas an export subsidy specifically targets goods that are sold abroad.

How Is a Production Subsidy Different from an Export