If Natural Gas Produced in the U

question 4

Multiple Choice

If natural gas produced in the U.S. was exported to countries in Asia and Europe, what factor would likely increase the price of that natural gas in the importing countries?

• A)The U.S.would impose export charges on each unit of natural gas exported and those charges would be passed along to the importing countries.
• B)Exporters in the U.S.would arbitrarily inflate the costs of production so that the importing countries would pay higher prices.
• C)Importing countries would impose tariffs on the imported natural gas and those tariffs be passed along by exporting companies to importing countries.
• D)Natural gas from the U.S.would have to be liquefied and transported in specially- designed ships to Asia and Europe, so transportation costs would increase the price of the imported natural gas in Asia and Europe.

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Definitions:

Research

The systematic investigation into and study of materials and sources to establish facts and reach new conclusions.

Efficiency Loss

The loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved, leading to potential welfare loss.

Bargaining Tactics

Strategies used by parties in negotiations to enhance their positions and achieve more favorable outcomes.

Strikebreakers

Individuals who work or are employed in place of union workers who are on strike, thus undermining the strike action.