can someone break this down in simple words?
Share
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
Break it down in a simple way.
The government of a small country decides to give an export subsidy for pencils, which means they provide financial assistance to the domestic producers of pencils to encourage them to export more.
The most likely result of this policy is option A: Although domestic producers will receive a net benefit, the policy will give rise to inefficiencies that cause a deadweight loss to the national welfare.
Here’s why: