The U.S. subsidizes domestic farmers to ensure that they remain profitable and continue to produce agricultural products. Explain the main argument for ensuring domestic production of agriculture products (even though domestic-produced agriculture costs buyers more than foreign-produced agriculture) and not needing to rely 100% on foreign-produced agriculture. Who are the "winners" of the farming subsidies? How do they benefit? Who are the "losers" of the farming subsidies? What does it cost them?

The U.S. subsidizes domestic farmers to ensure that they remain profitable and continue to produce agricultural products. Explain the main argument for ensuring domestic production of agriculture products (even though domestic-produced agriculture costs buyers more than foreign-produced agriculture) and not needing to rely 100% on foreign-produced agriculture. Who are the "winners" of the farming subsidies? How do they benefit? Who are the "losers" of the farming subsidies? What does it cost them?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter33: International Trade

Section: Chapter Questions

Problem 6QP

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Similar questions

(22) How would the creation of an import quota affect the market for a good? Imported supply increases Domestic supply decreases Market price increases Consumer surplus increases Producer surplus decreases
Graphically explain the negative effects of quotas. How about subsidies? Label and explain results in detail.
World Trade Organization 1. Explain the agreement under the Uruguay Round on the tariff and tariff quotas of agricultural products? 2. What countries used special treatment provisions on imports of sensitive products? Indicate the country and the assigned products. 3. Do you think that WTO can ensures strict health and safety regulations are not being used as an excuse to protect domestic producers? Why? 4. How the least -developed countries became dependent on the on the subsidized exports?5. Discuss the effects of domestic support on imports and export? Give example.
Do you agree with each of the following statements? Explain why or why not.a. The problem with U.S. agriculture is that there are too many farmers. That is not the fault of farmers but the fault of government programs.b. The Federal government ought to buy up all U.S. farm surpluses and give them away to developing nations.c. All industries would like government price supports if they could get them; agriculture obtained price supports only because of its strong political clout.
Explain how a subsidy on agricultural goods like sugar adversely affects the income of foreign producers of imported sugar.
Draw a supply and demand diagram for the purpose of demonstrating the welfare effects of a quota in a small country. Describe prices and trade before and after the imposition of the quota. Using areas on the diagram, calculate the total gains and/or losses from the imposition of a quota. Explain the impact on the various economic actors that are affected by the quota..
5. How do subsidies distort trade patterns and lead to inefficiencies?
Economics 4. Depict on graph and briefly explain economic consequences of export subsidy: • for domestic exporters; • for domestic consumers; • for government budget; • for national economic welfare as a whole.
Please solve 4th,5th,6th Suppose the world price for a good is 100 and the domestic demand-and supply curves are given by the following equations Demand: P=160-Q Supply: P= 10 + 15Q How much is consumed? How much is produced at home? What are the values of consumer and producer surplus? If a tariff of 10 percent is imposed, by how much do consumption and dopest production change? What is the change in consumer and producer surplus? How much revenue does the government earn from tariff?
1. If trade is not allowed, what is the equilibrium price and quantity in this market?2. If trade is allowed, will this country import or export this commodity? Why?3. If trade is allowed, what is the price at which the good is sold, the domestic quantity supplied and demanded, and the quantity imported or exported?4. What area corresponds to consumer surplus if no trade is allowed?5. What area corresponds to consumer surplus if trade is allowed?6. What area corresponds to producer surplus if no trade is allowed?7. What area corresponds to producer surplus if trade is allowed?8. If free trade is allowed, who gains and who loses, the consumers or the producers, and what area corresponds to their gain or loss?9. What area corresponds to the gains from trade?
Export Subsidy. Suppose the home country exports cloth and imports food. Show the impact of an export subsidy by the home country using the relative demand and relative supply curves for cloth. What is the impact on the home country's terms of trade? Make sure you label your graph and explain your reasoning.
QUESTION 32 Which of the following statements is false? A. A quota is a tax levied against a specific good being imported into a country B. A tariff is a tax levied on imported goods C. A quota is a limit on the quantity of a good being imported into a country D. A tariff reduces the amount of imported goods