The Figure Given Below Represents the U

question 49

Multiple Choice

The figure given below represents the U.S. market for steel imports from Korea. The Korean government provides an export subsidy of $25 per ton, and Korean firms use the subsidy to reduce their export price to the United States to $375 per ton. Calculate the change in national welfare in the United States when the Korean government provides an export subsidy of $25 per ton?

• A)+ $375 million
• B)- $3.75 billion
• C)+ $4.125 billion
• D)-$4.5 billion

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Definitions:

Baumeister and Leary

Refer to psychologists Roy Baumeister and Mark Leary, known for their work on the need to belong theory, which posits that humans have a fundamental drive to form and maintain interpersonal relationships.

Creative

Relating to or involving the imagination or original ideas, especially in the production of an artistic work.

Self-Stereotyping

The process by which individuals adopt and apply stereotypes about their own groups to themselves.

Ingroup-Outgroup Bias

The tendency to favor members of one's own group (ingroup) over those of other groups (outgroup), often leading to prejudice and discrimination.