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Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884 Exercise 5
Use the following news clip to work the Problem.
Steel Tariffs Appear to Have Backfired on Bush
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 they saved, by driving up costs for automakers and other steel users.
a. Explain how a high tariff on steel imports can help domestic steel producers.
b. Explain how a high tariff on steel imports can harm steel users.
Steel Tariffs Appear to Have Backfired on Bush
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 they saved, by driving up costs for automakers and other steel users.
a. Explain how a high tariff on steel imports can help domestic steel producers.
b. Explain how a high tariff on steel imports can harm steel users.
Explanation
Verified
Verified
(a) A tariff is a tax on a good that is ...
Macroeconomics 11th Edition by Michael Parkin
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