What is an effect of a tariff on steel imports to the United States?
A. U.S. consumers benefit from the increased production of better-quality steel in the United States.
B. U.S. steel workers lose because the increase in the price of steel results in decreased production and unemployment in the steel industry.
C. Foreign consumers benefit from the effective world-wide increase in the price of steel.
D. U.S. steel producers benefit as the product's price rises and domestic production increases.
Answer: D
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All the following actions represent fiscal policy EXCEPT
A) an increase in government spending. B) a reduction in individual income tax rates. C) a reduction in the money supply by the Federal Reserve. D) an increase in corporate income tax rates.
In the above figure, a minimum wage will not change the unemployment rate if it is set at
A) $6.00. B) $9.00. C) $12.00. D) Both B and C are correct because any wage rate that exceeds $9 per hour has no effect on the unemployment rate. E) None of the above because the minimum wage always affects the unemployment rate.
A perfectly competitive firm is currently producing where price is $8 and both marginal cost and average variable cost are $9 . To maximize profit or minimize loss in the short run, this firm should
a. raise its price b. increase its output c. reduce its output d. lower its price e. shut down
The nominal rate of interest is
A. CPI minus an inflationary premium. B. the real rate of interest minus the anticipated rate of inflation. C. PPI minus an inflationary premium. D. the market rate of interest expressed in today's dollars.