When the United States subsidizes Boeing for export, who benefits and who pays the bill?
A) Foreign consumers, Boeing workers, and Boeing stockholders benefit; U.S. taxpayers foot the bill.
B) Foreign producers benefit; foreign consumers pay the bill.
C) Domestic consumers benefit; foreign firms pay the bill.
D) There is only a deadweight loss-everyone wins in this situation.

Question

Quizplus · Accepted Answer

When the United States subsidizes Boeing for export, foreign consumers benefit from cheaper prices, Boeing workers benefit from job security, and Boeing stockholders benefit from increased profits. However, U.S. taxpayers foot the bill for the subsidies, resulting in a transfer of wealth from taxpayers to the beneficiaries of the subsidies.

When the United States Subsidizes Boeing for Export, Who Benefits