Question

An economic analysis of a proposal to impose a quotaLOADING... on steel importsLOADING... into the United States indicated that the quota would save​ 3,700 jobs in the steel industry but cost about​ 35,000 jobs in other U.S. industries. A quota on steel imports would cause employment to fall in other industries because what happens to the costs of producing goods that use​ steel? ​Source: Study cited in Douglas A.​ Irwin, Free Trade Under Fire​, ​Princeton, NJ: Princeton University​ Press, 2002, p. 82. The quota ▼ raises lowers the costs of producing goods that use steel.

Answer 1

The quota raises the cost of producing goods that use steel

Step-by-step explanation:

It is very simple, in this example steel in the United States is way more expensive that the steel that can be produced in other countries, because of that the american steel suffers a hit in its sells since cheaper steel can be found overseas, so the way to protect steel-producing jobs the quota on steel imports is raised then other industries that need steel to produce or to function will have an increase in production costs, because of that increase on the price of imported steel.