In 2002,the U

question 17

Multiple Choice

In 2002,the U.S.imposed higher tariffs on steel imports to save American jobs.How did these tariffs reduce U.S exports?

• A)The dollars that foreigners could have earned on U.S.imports decreased,thus reducing U.S.exports.
• B)The tariffs led to lower imports of steel,a depreciation of the dollar,and consequently lower U.S.exports.
• C)The country's trading partners have always imposed high tariffs on their own imports.
• D)The tariffs increased domestic inflation leading to a depreciation of the dollar and consequently,lower U.S.exports.

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Definitions:

Economic Efficiency

The optimal allocation of resources to maximize productivity and meet consumer demand most effectively.

Credit Bureaus

Organizations that collect and maintain individual credit information, providing credit reports to lenders, employers, and others authorized to receive such information.

Credit Histories

Records that document an individual's or company's past borrowing and repaying behaviors, including information on late payments and bankruptcy.

Moral Hazard

The situation in which one party engages in risky behavior knowing that it is protected against the risk because another party will incur the cost.