Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The tariff will increase the price of imported steel, leading consumers to buy more domestic steel, thus increasing domestic production.
B
The tariff will decrease the overall supply of steel in the market, resulting in lower prices for all steel products.
C
The tariff will harm domestic producers by increasing competition from cheaper foreign steel.
D
The tariff will have no effect on the quantity of steel imported as consumers will always prefer cheaper options.
Understanding the Answer
Let's break down why this is correct
Answer
When a government imposes a tariff on imported steel, it means they are adding a tax to the steel that comes from other countries. This makes foreign steel more expensive, encouraging people and businesses to buy steel made in their own country instead. The main idea is to protect local manufacturers, helping them compete against cheaper imported steel. For example, if a company in the U. S.
Detailed Explanation
The tariff raises the cost of imported steel. Other options are incorrect because Some might think that a tariff reduces the total amount of steel available; This option suggests that tariffs hurt local producers.
Key Concepts
Effects of Tariffs
Domestic Production
Consumer Behavior
Topic
Effects of Tariffs on Trade
Difficulty
medium level question
Cognitive Level
understand
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