The Figure Given Below Represents the U

question 3

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. Suppose the United States now imposes a countervailing duty on its steel imports from Korea to offset the impact of the subsidy provided by the Korean government on its steel exports. Calculate the change in the national welfare of the U.S. due to the imposition of this duty.

• A)-$375 million
• B)+$3.375 billion
• C)+$3.75 billion
• D)-$4.125 billion

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Definitions:

Jacquard Loom

An early mechanical loom invented by Joseph Marie Jacquard, which used punched cards to control the weaving of intricate patterns in fabric.

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Devices that open or close circuits to control the flow of electricity, often used in keyboards and other mechanical devices.

Portable

Characteristic of a device or software that can be easily carried or moved, especially devices that can operate independently of a fixed power source.

Operating System

An application controlling the computer's hardware, managing software resources, and providing universal services for various computer applications.