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Why Do the United States and the European Union Governments

Question 36

Multiple Choice

Why do the United States and the European Union governments
Apply tariffs to solar panel imports, even though solar panels
Generate positive consumption externalities?


A) They believe that imported solar panels' negative consumption externalities outweigh their positive consumption
Externalities.
B) They believe that domestic production of solar panels generates negative production externalities that outweigh the
Positive consumption externalities from imports.
C) They believe that domestic production of solar panels generates positive production externalities that outweigh the
Positive consumption externalities of imports.
D) They believe that imported solar panels negative production externalities outweigh their positive consumption externalities.

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