Which of the following statements are true? Check all that apply. When the gover
ID: 1199836 • Letter: W
Question
Which of the following statements are true? Check all that apply. When the government makes up the difference between a guaranteed minimum price and the lower price which farmers actually sell their crop, this is a production subsidy When the government subsidizes consumers of an agricultural crop, this is an export subsidy Production subsidies in a small country cause greater deadweight losses than do export subsidies. A country's production subs dies have less impact on other countries than do Its export subsidies.Explanation / Answer
Answer: a country's production subsidies have less impact on other countries than do its export subsidies.
Export subsidies distort the prices in world market whereas production subsidy does not do that.