Question

A "Buy American" provision in the 2009 stimulus bill would ________ consumer surplus and ________ producer surplus for industries that produce protected products in the United States.

Answer 1

Answer:

The correct answer is decrease; increase.

Explanation:

The "Buy American" law was passed in 1933 and established that the US federal government. UU. You must prioritize the purchase of products manufactured in the country. Under certain circumstances, however, the "Buy American" law may not apply when:

• material of American origin has an excessive cost;
• material of American origin is not available in sufficient quantity or volume;
• material of American origin is not in the public interest.

The "Buy American" law may also not apply if the president of the United States or a delegated authority said it on the grounds of reciprocal agreements with other countries defined in the Law on Trade Agreements, the North American Free Trade Agreement (NAFTA) and the World Trade Organization.