How does a production subsidy differ 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 producers for all their output, not just the portion that is exported, unlike an export subsidy which specifically targets goods being sold abroad.

How Does a Production Subsidy Differ from an Export Subsidy