Suppose that production of steel in the United States involves negative externalities. Now suppose that U.S. tariffs on steel imports are eliminated and U.S. imports of steel increase. What effect does the elimination of these tariffs have on total social costs associated with steel production in the United States?
a. Total social costs will increase.
b. They will not change.
c. They will decrease.
d. They will increase butc. They will decrease.
may be smaller than the private gains from increased steel imports.
Ans: c. They will decrease.
You might also like to view...
Under Keynesian analysis, aggregate demand can be written as
A) Yad = C + I + G + NX. B) Yad = C + I + G - NX. C) Yad = C - I - G - NX. D) Yad = C + I - G - NX.
In what way is the result of an excise tax imposed on either demanders or suppliers similar to the result of a price ceiling?
a. The amount that consumers pay for the good will be less than they previously paid b. The amount of the good that will be traded in the market will be less than previously traded c. both price ceilings and excise taxes create excess demand d. The amount that consumers pay for the good will be greater than they previously paid e. both price floors and excise taxes create excess supply
The long run supply curve for a constant cost industry is:
a. horizontal. b. upward sloping. c. vertical. d. downward sloping.
A peak is the...
What will be an ideal response?