(Figure: Home's Exporting Industry II) The graph shows the effect of a subsidy on a large country. D describes home demand and S describes home supply. According to the graph, which of the following will help the large country avoid the deadweight loss from the $100 export subsidy?
A) impose a tariff
B) impose a quota
C) provide cash to developing countries to purchase the product from the home country
D) impose trade restrictions

Question

(Figure: Home's Exporting Industry II) The graph shows the effect of a subsidy on a large country. D describes home demand and S describes home supply.  According to the graph, which of the following will help the large country avoid the deadweight loss from the $100 export subsidy?
A) impose a tariff 
B) impose a quota 
C) provide cash to developing countries to purchase the product from the home country 
D) impose trade restrictions

Quizplus · Accepted Answer

The Answer of (Figure: Home's Exporting Industry II) The graph shows the effect of a subsidy on a large country. D describes home demand and S describes home supply.  According to the graph, which of the following will help the large country avoid the deadweight loss from the $100 export subsidy?
A) impose a tariff 
B) impose a quota 
C) provide cash to developing countries to purchase the product from the home country 
D) impose trade restrictions

(Figure: Home's Exporting Industry II) the Graph Shows the Effect