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Domestic production subsidies

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Complete the following table by indicating whether each statement about domestic production subsidies and export subsidies is true or false.

  • When the government subsidizes consumers of an agricultural crop, this is a domestic production subsidy.
  • When the government subsidizes consumers of an agricultural crop, this is an export subsidy.
  • A country's domestic production subsidies have more impact on the country's exports than do export subsidies
  • Domestic production subsidies in a small country cause greater deadweight losses than do export subsidies.

Reference no: EM132389406

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