If a subsidy was imposed on an industry whose production imposed external benefits on others, then the goods' consumers of the good would be ____ and the result would be a(n) ____ in efficiency.
a. better off; increase.
b. better off; decrease.
c. worse off; increase.
d. worse off; decrease.
Question 2
Compared to the no-trade situation, when a country exports a good:
a. domestic consumers gain, domestic producers lose, and the gains outweigh the losses.
b. domestic consumers lose, domestic producers gain, and the gains outweigh the losses.
c. domestic consumers gain, domestic producers lose, and the losses outweigh the gains.
d. domestic consumers gain, domestic producers lose, an equal amount.
In nest, under production
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