What is the difference between an agricultural export subsidy and an agricultural production subsidy?
A) There is no difference between an agricultural export subsidy and an agricultural production subsidy.
B) An agricultural export subsidy applies only to exports, whereas an agricultural production subsidy applies to domestic production sold at home and in the export market.
C) An agricultural export subsidy applies only to production sold in the home market, whereas an agricultural production subsidy applies to production sold in the export market.
D) Both agricultural export subsidies and production subsidies apply to production sold in the home market and in the export market.

Question

Quizplus · Accepted Answer

An agricultural export subsidy applies only to exports, whereas an agricultural production subsidy applies to domestic production sold at home and in the export market. Therefore, the main difference between the two is the target of the subsidy. Export subsidies are designed to make the exported product cheaper or more competitive in the global market, while production subsidies are intended to encourage domestic production and make it more profitable.

What Is the Difference Between an Agricultural Export Subsidy and an Agricultural