For a small nation employing a production subsidy,
Domestic producers get a payment for every good
Produced, and domestic consumers:
A)purchase the product at the world price the same as before the subsidy.
B)pay a higher price for the product.
C)pay a reduced price for the product.
D)purchase more of the product.

Question

Quizplus · Accepted Answer

In a small nation employing a production subsidy, domestic producers receive a payment for each good produced, allowing them to sell at the world price without affecting the domestic consumer price.

For a Small Nation Employing a Production Subsidy