U)SFirms That Sell Products in Foreign Markets Protested the "Buy

question 61

Multiple Choice

U) S.firms that sell products in foreign markets protested the "Buy American" provision in the 2009 stimulus bill,arguing that if the United States restricted imports from foreign firms,

• A) foreign countries would likely retaliate by limiting U.S. exports.
• B) foreign firms would stop selling all products in the United States.
• C) U.S. firms would never be able to meet the increased demand for U.S.-produced goods.
• D) eventually the government would demand price cuts from U.S. manufacturers.

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Definitions:

Marginal Cost

The increase in cost that arises from producing an additional unit of a good or service.

Marginal

Incremental, additional, or extra; used to describe a change in an economic variable.

Incremental

Describes small, gradual changes or increases made over a period of time.

Economic Information

Data related to the production, distribution, and consumption of goods and services that informs decision-making.