Read the news clip, then answer the following questions. President Bush set asid
ID: 1122869 • Letter: R
Question
Read the news clip, then answer the following questions.
President Bush set aside his free-trade principles last year and imposed heavy tariffs on imported steel to help out struggling mills in Pennsylvania and West Virginia. Some economists say the tariffs may have cost more jobs than theysaved, by driving up costs for automakers and other steel users.
when a high tariff is placed on steel imports, U.S. steel produce ____ steel and they reveive a _____ price.
a. more; higher
b. Less; higher
c. less; lower
d. more; lower
When a high tariff is placed on steel imports, U.S. steel suers consume _____ steel, and they pay a _____ price.
a.more;lower
b.less; lower
c. more; higher
d. less; higher
Explanation / Answer
1. a. more; higher
Explanation: The high tariffs make import of steel costlier, therefore import will come down. Therefore, US Steel will be able to sell more Steel at a higher price. So, US steel will increase production.
2. d. less; higher
Explanation: With ith fall in import, the domestic producers will be able to charge a higher price for steel. Increased domestic steel price will force American consumers to consume less steel.
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