Critical Thinking Governments sometimes provide pricesubsidies to specific industries; that is, they reduce adomestic firm’s costs so that it can sell products onthe international market at a lower price. What reasons do governments (and politicians) use for these government subsidies? What are the benefits and disadvantages to domestic industries in the long run? Tointernational customers? Who would benefit and whowould lose if all price subsidies were eliminated? Doyou feel that the U.S. government should or shouldnot use price subsidies for some U.S. industries? Whydo you feel that way?

Critical Thinking Governments sometimes provide pricesubsidies to specific industries; that is, they reduce adomestic firm’s costs so that it can sell products onthe international market at a lower price. What reasons do governments (and politicians) use for these government subsidies? What are the benefits and disadvantages to domestic industries in the long run? Tointernational customers? Who would benefit and whowould lose if all price subsidies were eliminated? Doyou feel that the U.S. government should or shouldnot use price subsidies for some U.S. industries? Whydo you feel that way?