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 terms-of-trade gains.
D) The country will gain if its terms-of-trade gains exceed the reduction in its deadweight losses.

Question

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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 terms-of-trade gains.
D) The country will gain if its terms-of-trade gains exceed the reduction in its deadweight losses.

Suppose That a Large Country Decides to Reduce Its Agricultural