Please help with these questions
Figure: Home's Exporting Industry 1 The graph shows information about a small home exporter. D is home demand and S is home supply. According to the graph, an export subsidy of $50 results in: a domestic consumption loss of $500. a domestic production gain of $500. a domestic consumption loss of $5,000. a domestic production loss of $250. In a clear example of the benefits of domestic subsidies, the Common Agricultural Policy paid European farmers 50 euros per ton of harvested sugar beets in 2003 (five times the world market price), which allnwed: European farmers to charge less than the world market price, undercutting competitors. American consumers to enjoy much cheaper domestically grown beets. beet farmers worldwide to enjoy more competition in the beet market, a phenomenon heralded by free-market economists. European farmers to switch production to other agricultural goods that were more lucrative. Question 10 The vast majority of economists agree that: tariffs and import quotas do not exist in today's global economy. tariffs and import quotas generally increase economic welfare. trade wars are good and easy to win. tarifts and import quotas generally reduce economic welfare. Figure: Payoff Matrix for Airbus and Boeing with a Subsidy Based on the payoff matrix, if the European Union provides Airbus with a subsidy, Airbus will airplanes and Boeing will airplanes. produce; produce not produce; produce produce; not produce not produce; not produce Figure: Payoff Matrix for Airbus and Boeing One could use game theory to analyze government subsidies. Using the payoff matrix shown, what will each nation do if it is a 5050 guess what the other side will do? Europe will subsidize Airbus and the United States will subsidize Boeing. Europe will not subsidize Airbus and the United States will not subsidize Boeing. Europe will subsidize Airbus and the United States will not subsidize Boeing. Europe will not subsidize Airbus and the United States will subsidize Bocing. Figure: Home's Exporting Industry 1 The graph shows information about a small home exporter. D is home demand and S is home supply. According to the graph, an export subsidy of $50 results in: a domestic consumption loss of $500. a domestic production gain of $500. a domestic consumption loss of $5,000. a domestic production loss of $250. In a clear example of the benefits of domestic subsidies, the Common Agricultural Policy paid European farmers 50 euros per ton of harvested sugar beets in 2003 (five times the world market price), which allnwed: European farmers to charge less than the world market price, undercutting competitors. American consumers to enjoy much cheaper domestically grown beets. beet farmers worldwide to enjoy more competition in the beet market, a phenomenon heralded by free-market economists. European farmers to switch production to other agricultural goods that were more lucrative. Question 10 The vast majority of economists agree that: tariffs and import quotas do not exist in today's global economy. tariffs and import quotas generally increase economic welfare. trade wars are good and easy to win. tarifts and import quotas generally reduce economic welfare. Figure: Payoff Matrix for Airbus and Boeing with a Subsidy Based on the payoff matrix, if the European Union provides Airbus with a subsidy, Airbus will airplanes and Boeing will airplanes. produce; produce not produce; produce produce; not produce not produce; not produce Figure: Payoff Matrix for Airbus and Boeing One could use game theory to analyze government subsidies. Using the payoff matrix shown, what will each nation do if it is a 5050 guess what the other side will do? Europe will subsidize Airbus and the United States will subsidize Boeing. Europe will not subsidize Airbus and the United States will not subsidize Boeing. Europe will subsidize Airbus and the United States will not subsidize Boeing. Europe will not subsidize Airbus and the United States will subsidize Bocing
