Suppose a new law is proposed that would impose tariffs on imported steel. The estimated cost to millions of domestic consumers is $50 billion total, in terms of higher prices for the products they purchase. The estimated benefit to the three major domestic steel producers in the industry is an excess profit of $30 billion due to reduced competition and the ability to charge higher prices. From the standpoint of economic efficiency, this tariff is economically . (efficent/Inefficent)
Passing the tariff would create ( Concentrated benefits and widespread cost/widespread benefits and concentrated costs/widespread benefits and widespread cost/ concentrated benefits and concentrated cost)
Because the small number of domestic producers would be willing to spend up to(in expenditures50,10,30,20 billion) to lobby the government in favor of the law, while the millions of consumers would likely either not know about the policy or would not find it worthwhile to lobby, this special interest issue would probably (pass/fail) if subjected to political decision making.