MCQOPTIONS
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| 1. |
Export subsidies levied by foreign governments on products in which the Pakistan the comparative disadvantage ? |
| A. | lower the welfare of all Pakistanis |
| B. | lead to increases in Pakistani consumer surplus |
| C. | encourage Pakistan’s production of competing goods |
| D. | encourage Pakistani workers to demand higher wages |
| Answer» C. encourage Pakistan’s production of competing goods | |