United States' Decision

$\backslash$table$[[,,$Low Tariffs,High Tariffs$],[$Mexico$\text{'}$s Decision,Low Tariffs,$$25$ billion, $$25$ billion,$$10$ billion, $$30$ billion$],[$High Tariffs,$$30$ billion, $$10$ billion,$$20$ billion, $$20$ billion$]]$

The dominant strategy for the United States is always to choose $q,$ tariffs. The dominant strategy for Mexico is always to choose $q,$ tariffs.

True or False: The Nash equilibrium outcome for trade policy is for the United States to have high tariffs and Mexico to have low tariffs.

True

False

In $1993,$ the U$.$S$.$ Congress ratified the North American Free Trade Agreement, in which the United States and Mexico agreed to reduce trade barriers simultaneously.

True or False: Given the trade strategy decisions in the table, both countries are better off with this new trade policy.

True

False

Based on your understanding of the gains, from trade $($discussed in Chapters $3$ and $9),$ which of the following statements accurately characterize how well the payoffs indicated for the four possible outcomes actually reflect a nation's welfare? Check all that apply.

The payoffs in the upper left and lower right corners of the matrix reflect a nation's welfare because they show that trade is beneficial and