The "Buy American" Provision in the 2009 Stimulus Package Required

question 145

Multiple Choice

The "Buy American" provision in the 2009 stimulus package required that stimulus money be spent only on U.S.-made goods, effectively acting as a quota of zero imports when stimulus money was being spent.In the U.S.steel market, the "Buy American" provision in the 2009 stimulus package would

• A)convert some consumer surplus to deadweight loss.
• B)transfer some deadweight loss to producer surplus.
• C)transfer some producer surplus to consumer surplus.
• D)reduce the producer surplus received by foreign manufacturers.

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Definitions:

Duress Rule

A legal principle that negates the validity of an agreement if it was made under coercion or threat of harm.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States.

Goods

Objects or materials that are produced for sale or exchange in the market, generally physical and tangible in nature.

Duress

A situation where a person performs an act as a result of violence, threat, or other pressure against them.