Answer the following statements true (T) or false (F)

1.For most nations, the ratio of imports to total purchases in the public sector is much higher than in the private sector.
2.According to the U.S. Buy American Act, federal government agencies cannot purchase materials and products from U.S. suppliers if their prices are higher than those of foreign competitors.
3.For the United States, the Buy American Act has tended to increase consumer surplus for U.S. buyers of protected merchandise.
4.An effective Buy American law would tend to increase U.S. producer surplus at the expense of U.S. consumer surplus.
5.An effective Buy American law results in deadweight welfare losses for the United States in the form of the protective effect and consumption effect.


1.False
2.False
3.False
4.True
5.True

Business

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