MINDTAP ECONOMICS FOR MANKIW S BRIEF PR
8th Edition
ISBN: 9781337096614
Author: Mankiw
Publisher: Cengage Learning
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Question
Chapter 14, Problem 4PA
To determine
The impact of reduction in the trade barriers.
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Small Island Developing States (SIDS), particularly our Caribbean islands, are normally accused by our economists of being import dependent. Why then are we always hesitant to impose Tariffs on imports to solve our Balance of Payments problems? Why would it be slow to work on our appetites? Discuss this issue in relation to the concept of Elasticity of Demand.
Also, why is the Government always imposing more and more sin taxes on alcohol and cigarettes? Is the Government so concerned about our sins when we consume these demerit goods?
Economists generally agree that trade restrictions are detrimental to trade and reduce government efficiency. Why then do
governments restrict trade? Arguments for restricting trade include to promote national defense, to impose sanctions on other
countries, to protect domestic infant industries, to create or preserve domestic jobs, to ensure fair competition, and to retaliate for
unfair trade policies of other governments
Match each action to the correct argument for trade intervention
Limits on trade with certain
countries
import duties on products
from a foreign country
Subsidies for industries
considered vital to national
security
Subsidies for emerging
industries
Counterpan on imports
Argument for
Intervention
To provide for national
defense
To impose sanctions
To protect infant industries
To ensure fair competition
To provide retaliation
Action
Counterban on imports
Limits on trade with certain
countries
import duties on products
from a foreign country
Subsidies for emerging…
Which of the following is NOT a law that impacted U.S. tariffs?
A.
Food, Drug, and Cosmetic Act
B.
Smoot-Hawley Act
C.
McKinley Act
D.
Fordney-McCumber Act
Chapter 14 Solutions
MINDTAP ECONOMICS FOR MANKIW S BRIEF PR
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