If we consider the impact on both consumers and producers, then protection of the steel industry is ?
Correct answer: C. Not in the interest of the U.S as a whole, but it might be in the interest of the state of Pennsylvania
- A. In the interest of the U.S as a whole but not in the interest of the state of Pennsylvania where steel mills are located
- B. In the interest of the U.S as a whole and in the interest of the state of Pennsylvania
- C. Not in the interest of the U.S as a whole, but it might be in the interest of the state of Pennsylvania
- D. Not in the interest of the U.S as a whole, nor in the interest of the state of Pennsylvania
Explanation
Steel protection can benefit domestic steel producers and regions such as Pennsylvania, but higher prices impose costs on consumers and steel-using industries. The national loss from these costs can exceed the producers’ gains, making it not in the U.S. interest overall.
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