Question

From the perspective of the American public as a whole, export subsidies levied by overseas governments...

From the perspective of the American public as a whole, export subsidies levied by overseas governments on goods sold to the United States:

Help more than they hurt

Hurt more than they help

Are equivalent to an import quota

Are equivalent to an export quota
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Answer #1

Exports subsidies hurt the domestic country where the consumers have to pay a higher price for a good they are purchasing, but it is beneficial for the consumer in the importing country which gets to use the goods at a lower cost.

The answer is "A", helps more than they hurt. It increases the real income of people in the host country in this case America. (Chinese goods are heavily subsidized by the Chinese Government it benefits the overall US consumer allowing them to consume more and get a higher surplus. )

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