5.4 Why does the production subsidy produce a greater gain in welfare than the tariff? (1) QUESTION 6: MULTIPLE CHOICE (20 MARKS) COMPLETE THIS QUESTION ON THE PROVIDED ANSWER SHEET.1. The meaning of "terms of trade" isA) The tariffs in place between two trading countries. B) The price of a country's exports divided by the price of its imports. C) The amount of exports sold by a country. D) The quantities of imports received in free trade. E) The price conditions bargained for in international markets.2. If the ratio of price of cloth (PC) divided by the price of food (PF) increases in the international marketplace, then3. The existence of internal economies of scale
4. Internal economies of scale will ________ average cost when output is ________ by ________.