The "Buy American" provision in the 2009 stimulus package required that stimulus money be spent only on U.S.-made goods, effectively acting as a quota of zero imports when stimulus money was being spent. In the U.S
steel market, the "Buy American" provision in the 2009 stimulus package would
A) reduce the producer surplus received by foreign manufacturers.
B) transfer some deadweight loss to producer surplus.
C) transfer some producer surplus to consumer surplus.
D) convert some consumer surplus to deadweight loss.
D
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Elasticity computations related to demand carry a minus sign to show that the demand curve is negatively sloped.
Answer the following statement true (T) or false (F)
Because employment actually continued to fall at the beginning of the recoveries that began in 1991, 2001, and 2009, these recoveries have come to be known as
A) pseudo recoveries. B) non-recoveries. C) double-dip recoveries. D) jobless recoveries.
When a developing country relies on import substitution,
a. it sacrifices the gains from specialization and comparative advantage b. replaces low-cost foreign goods with high-cost domestic goods c. domestic producers, shielded from foreign competition, usually fail to become efficient d. other countries often retaliate with their own trade restrictions e. All of the answers are correct
Figure 7-12
Which of the graphs in Figure 7-12 shows a marginal physical product curve that exhibits first increasing and then diminishing marginal returns to sunlight?
A. (a) B. (b) C. (c) D. (d)