Suppose that production of steel in the United States involves
Negative externalities.Now suppose that U.S.tariffs on steel
Imports are eliminated and U.S.imports of steel increase.What
Effect does the elimination of these tariffs have on total social
Costs associated with steel production in the United States?
A)Total social costs will increase.
B)They will not change.
C)They will decrease.
D)They will increase but may be smaller than the private gains from increased steel imports.

Question

Quizplus · Accepted Answer

Eliminating tariffs and increasing imports can reduce domestic production, thus decreasing the negative externalities and total social costs associated with domestic steel production.

Suppose That Production of Steel in the United States Involves