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When a subsidy is employed to encourage more domestic production in an import-competing industry that generates positive externalities, the change in national well-being is positive
When a subsidy is employed to encourage more domestic production in an import-competing industry that generates positive externalities, the change in national well-being is positive if the marginal external benefit exceeds the Multiple choice question. sum of the subsidy and the consumption effect. consumption effect. production subsidy
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
