NO.PZ2023071902000018
问题如下：
QuestionA small country possesses a comparative advantage in pencil production.
To stimulate economic growth, the government implements an export
subsidy for pencils. What is the most likely consequence of this policy?
选项：
A.Although domestic producers will gain a net benefit, the policy will result in inefficiencies and create a deadweight loss to national welfare.
B.With the entry of new domestic producers into the pencils market, the supply will increase, leading to a decrease in domestic prices.
C.The increase in domestic producer surplus will surpass the combined value of the subsidy and the reduction in domestic consumer surplus.解释：
Solution
Correct. Export subsidies interfere with free market operations, causing a deadweight loss to society. This loss occurs because higher subsidized prices allow inefficient producers to remain in the market. On the consumer side, the higher price excludes some consumers who would have bought at the lower price.
Incorrect. Producers tend to shift output from the domestic to the export market to take advantage of the subsidy. Additionally, being a small country, the domestic market acts as a price taker, so consumers pay the international price plus the subsidy, leading to an increase in domestic prices.
Incorrect. As prices rise and producers increase production beyond the efficient level, efficiency diminishes. Consequently, national welfare is negatively affected, as the increase in producer surplus is smaller than the combined cost to consumers and the government.
• compare types of trade restrictions, such as tariffs, quotas, and export subsidies, and their economic implications
选项解释中提到了higher domestic price，为什么出口补贴会使国内价格上升？
