If the Korean steel industry subsidizes the steel that it sells to the United States, the
A)United States should protect its domestic steel industry from this unfair competition.
B)harm done to U.S.steel producers from this unfair competition exceeds the gain to U.S.consumers of cheap Korean steel.
C)harm done to U.S.steel producers is less than the benefit that accrues to U.S.consumers of steel.
D)United States should subsidize the products it sells to Korea.

Question

Quizplus · Accepted Answer

The harm done to U.S. steel producers from subsidized Korean steel is typically less than the benefit to U.S. consumers, who gain from lower prices. This is because the overall economy benefits from cheaper inputs (like steel), which can reduce costs for a wide range of industries and lead to lower prices for consumers.

If the Korean Steel Industry Subsidizes the Steel That It