What are the likely effects of a U.S. antidumping duty on imported steel?
a. The U.S. terms of trade will improve and U.S. steel imports will rise.
b. The U.S. terms of trade will worsen and U.S. steel imports will rise.
c. The foreign price of steel will rise and the United States will avoid deadweight losses.
d. The U.S. price of steel will rise and the United States will suffer deadweight losses.
Ans: d. The U.S. price of steel will rise and the United States will suffer deadweight losses.
You might also like to view...
Discuss some of the general conclusions arrived at about supply-side tax initiatives
Suppose the Johnson Corporation releases an earnings report that beats the market's expectations. What does the efficient markets hypothesis predict will happen to Johnson's stock price
The quantities of Good M are plotted on the vertical axis while the quantities of Good N are plotted on the horizontal axis. The prices of both M and N fall. The intercepts of the budget line would
A) decline along both axes. B) rise on the vertical axis and also rise on the horizontal axis. C) rise on the horizontal axis but stay unchanged on the vertical axis. D) rise on the vertical axis but stay unchanged along the horizontal axis.
Under a system of freely flexible (floating) exchange rates an American trade deficit with Mexico will tend to cause
A. the United States government to ration pesos to American importers. B. a flow of gold from the United States to Mexico. C. an increase in the peso price of dollars. D. an increase in the dollar price of pesos.