ECO 2302 PRIN MACO W/MYECO ACC >IP<
4th Edition
ISBN: 9781323504161
Author: CASE
Publisher: PEARSON C
expand_more
expand_more
format_list_bulleted
Question
Chapter 19, Problem 2.1P
Subpart (a):
To determine
The effect on output and employment.
Subpart (b):
To determine
The impact on import.
Subpart (c):
To determine
The
Subpart (d):
To determine
The effect on employment and output.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Suppose that the U.S. increases its tariffs on all imported goods. Obviously, this will have an impact on the amount of U.S. imports. What indirect effect will this have on U.S. exports – and why?
The following graph depicts the supply and demand curves for U.S. dollars in the foreign exchange market.
Suppose that Japan puts quotas on all U.S. imports.
On the graph, shift either the supply of dollars curve, the demand for dollars curve, or both curves to best reflect the given scenario.
PRICE (Yen per dollar)
S
D
QUANTITY OF DOLLARS (Millions per day)
If Japan puts quotas on all U.S. Imports, the U.S. dollar
6.4.
Japan generally runs a significant trade surplus. Do you think this is most related to high foreign demand for Japanese goods, low Japanese demand for foreign goods, a high Japanese saving rate relative to Japanese investment, or structural barriers against imports into Japan? Explain your answer.
Chapter 19 Solutions
ECO 2302 PRIN MACO W/MYECO ACC >IP<
Knowledge Booster
Similar questions
- An expected decline in demand for consumer goods in the U.S. means there will be less imports into the U.S. Less imports in the U.S. translates to a reduction in exports from China, which is significant as the U.S. has the largest GDP of all nations. As the U.S. is reducing imports, it will be purchasing less goods from China, which means the U.S. will be giving up less dollars to purchase Chinese goods with the yuan. Will a decline in demand for consumer goods in the U.S. impact China's economy given the above information? If so, how would that affect the dollar-yuan exchange rate?arrow_forwardYou work for a Nova Scotia Company trying to successfully enter the cranberry market in Australia. Analyze the entry country (Australia) based on the following; What are the major exports, dollar value, and trends? What are the major imports, dollar value, and trends? Does the entry country have a surplus or deficit for trade? What are the exchange rates? Are there any restrictions on currency trade? You should also consider sweat shops, skilled labor, employee unrest, political and social activists and labor unions in your analysis.arrow_forwardIn 2019, the total U.S. trade with foreign countries was $5.6 trillion. How do U.S exports affect domestic production? In contrast, how do U.S. imports affect domestic production? Explain the consequences of reducing U.S. imports to $0.arrow_forward
- 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?arrow_forwardA semiconductor is a key component in your laptop, cell phone, and iPod. The table provides information about the market for semiconductors in the United States. Producers of semiconductors can get $18 a unit on the world market. Due to loss of competitiveness brought on by appreciation of the exchange rate and the high production costs, U.S. government reduce the export (or limit the supply of domestic producers) by imposing an export quota of 20 billion units per year. What happens to U.S. price of semiconductors, the quantity of semiconductors bought by U.S. people, and the quantity of semiconductors exported? [hint: use equation to calculate the equilibrium]arrow_forwardIf you observed a country with a rapidly growing trade surplus over a period of a year or so,would you be more likely to believe that the country's economy was in a period of recession or of rapid growth? Explain.arrow_forward
- If China has a trade surplus with the United States, it is a good thing for the U.S economy? True or Falsearrow_forwardSuppose Japanese government tightens controls on exports by Japanese companies. All else being equal, how would above affect:(i) U.S. demand for Japanese yen?(ii) supply of yen for sale?(iii) equilibrium value of yen? Be detailed in each of your answersarrow_forwardSuppose that the exchange rate falls from 84 yen per U.S. dollar to 71 yen per U.S. dollar. What is the effect of this change on the quantity of U.S. dollars that people plan to sell in the foreign exchange market? The quantity of U.S. dollars that people plan to sell in the foreign exchange market A. decreases and the supply curve of U.S. dollars shifts leftward B. increases and the supply curve of U.S. dollars shifts rightward C. increases and a movement up along the supply curve for U.S. dollars occurs D. decreases and a movement down along the supply curve of U.S. dollars occursarrow_forward
- If the unites States imports more goods from abroad than it exports, foreigner will tend to have a surplus of US dollars. What will this do to the value of the dollar with respect to foreign currencies? What is the corresponding effort on foreign investments in the United Statesarrow_forwardA Senator announces his past support for protectionism. “The U.S. trade deficit must be reduced, but import quotas only annoy our trading partners. If we subsidize U.S. exports instead, we can reduce the deficit by increasing our competitiveness.” Using a three-panel diagram from Chapter 19 in the Mankiw textbook, show the effects of an export subsidy on U.S. net exports, national saving, domestic investment, net capital outflows, the interest rate, and the real exchange rate. Do you agree with the senator?arrow_forwardThe small happy Kingdom of Pollyanna does not trade with the rest of the world, but uses U.S dollars for its currency. Its domestic price of tofu is $1 per pound and the Kingdom produces and consumes 5 tons of tofu. The world price of tofu is just $0.50 per pound. At this price, the Kingdom would produce only 2 tons of tofu and would consume 8 tons of tofu, and thus have to import 6 tons of tofu. How much consumer surplus would the Kingdom gain from opening up to trade? (Note: 1 ton = 2000 lbs.)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc