C) to protect domestic producers against international competition - best states the purpose of a government subsidy.
Explanation:
A government subsidy is the financial grant provided by the government people, private institutions, public entities etc in the interest of the general public and to promote economic growth.
This encourages and protects the local private companies and domestic producers against the monopoly trading of international companies.
Subsidies help them to reduce manufacturing costs and increase their productivity. Subsidies also provide the confidence for the domestic producers to export their goods and yield more profit.
Subsidies encourage domestic consumers to buy more from the domestic market.
The opportunity cost for the Congo to produce additional diamonds is <u>C. 4 thousand units of corn</u>.
<h3>What are opportunity costs?</h3>
Opportunity costs are the benefits of an alternative decision when the decision maker rejects the alternative.
For instance, the opportunity cost of going to college is the earnings forgone.
The opportunity cost is computed as the lost benefit when an alternative decision is not pursued.
Fractionally, the opportunity cost of producing one product A) to another (B) = Units of B / Units of A.
<h3>Data and Calculations:</h3>
United States opportunity cost to produce diamonds = 60/10 = 6
United States opportunity cost to produce corns = 10/60 = 1/6
Congo's opportunity cost to produce diamonds = 20/5 = 4
Congo's opportunity cost to produce corn = 5/20 = 1/4
Thus, the opportunity cost for the Congo to produce additional diamonds is <u>C. 4 thousand units of corn</u>.
Learn more about opportunity costs at brainly.com/question/481029
#SPJ1
Answer:
Purchasing Power
Explanation:
Purchasing Power is the term used to characterize the value of a currency by describing the amount of goods and services that can be purchased by a dollar at a given time. Inflation tends to decrease this value.
