Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 9, Problem 5MCQ
To determine
The correct option in case of U.S. tariff on paper.
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Students have asked these similar questions
Why are many goods sold in the United States produced overseas, often in several counties?
a. There are no tariffs on imports to the United States.
b. It results in much lower prices for consumers.
c. Overseas production is better for the environment.
d. It reduces the U.S. trade deficit.
A country produces two goods, soda and chips. It currently exports soda and imports chips. If it were to impose a tariff on chips,
A. imports of chips would rise, but exports of sodas would fall.
B. imports of chips would fall, but exports of sodas would rise.
C. both imports of chips and exports of sodas would rise.
D. both imports of chips and exports of sodas would fall
The nation of Theopolis recenty put a tariff on the importation of washing machines. Which of the following statements is true based on this information?
(a) This tariff harms consumers in Theopolis who buy washing machines
(b) This tariff benefts the producers of washing machines in Theopolis
(c) This tarif hurts the producers of washing machines in other countries that export to Theopolis
(d) The tariff will increase overall weltare in Theopolis
Explain all the false answers also
Chapter 9 Solutions
Foundations of Economics (8th Edition)
Ch. 9 - Prob. 1SPPACh. 9 - Prob. 2SPPACh. 9 - Prob. 3SPPACh. 9 - Prob. 4SPPACh. 9 - Prob. 5SPPACh. 9 - Prob. 6SPPACh. 9 - Prob. 7SPPACh. 9 - Prob. 8SPPACh. 9 - Prob. 9SPPACh. 9 - Prob. 10SPPA
Ch. 9 - Prob. 11SPPACh. 9 - Prob. 1IAPACh. 9 - Prob. 2IAPACh. 9 - Prob. 3IAPACh. 9 - Prob. 4IAPACh. 9 - Prob. 5IAPACh. 9 - Prob. 6IAPACh. 9 - Prob. 7IAPACh. 9 - Prob. 8IAPACh. 9 - Prob. 9IAPACh. 9 - Prob. 1MCQCh. 9 - Prob. 2MCQCh. 9 - Prob. 3MCQCh. 9 - Prob. 4MCQCh. 9 - Prob. 5MCQCh. 9 - Prob. 6MCQCh. 9 - Prob. 7MCQ
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Similar questions
- 1. Draw the US sneaker market in autarky. Add imports (at cheaper world prices). Add a 48% tariff on sneakers (so that the world price even with the tariff is still below the US autarky price). Mark the Consumer Surplus and government revenue (after tariff). Use your diagram to show why New Balance likes the tariff. Bonus: Use diagram to show why Nike does not like tariffarrow_forwardThis is homework question, not for exam. Pls help me with this problem, I will upvote -) As part of the recent trade war, the US imposed additional tariffs on Chinese imports. With the aid of relevant diagrams and examples, discuss the possible impact that the imposition of tariffs and quotas could have on the US economy.arrow_forwardA country imposing a tariff can benefit in terms of social welfare if A. The terms-of-trade benefit exceeds the sum of production and consumption distortion loss. B. The tariff revenue exceeds the sum of production and consumption distortion loss. C. The consumer surplus loss is less than the producer surplus gain. D. The terms-of-trade benefit exceeds the consumer surplus loss. (1 mark) Explain your answer in up to 200 words and using a diagram (4 marks)arrow_forward
- For The Canadian Company Embridge choose a country that it exports to (do not chose the U.S.A.) Developan understanding of this foreign country’s trade partnership with Canada by answering the following questions.1. How significant is this country to Canada’s overall trade picture?2. Is it a risky market?3. Is there an imbalance in trade (imports/exports)?4. Is there something unique about doing business with this country?5. How is the country’s economy changing?Resources: Use www.cia.gov/the-world-factbook/ orhttps://wits.worldbank.org/CountrySnapshot/en/CANarrow_forward4. With free trade, for a world price of $4 per wrench, Spain is importing _________wrenches. 5. If the world price is $4 per wrench, and the government of Spain imposes a tariff of $2, Spain produces ____________ and imports __________wrenches. 6. If the world price is $4 per wrench, and the government of Spain imposes a tariff of $2, how much tariff revenue will the Spain’s government collect? _____.arrow_forwardIf Alabama imports 10 bushels of peaches and exports 40 bushels of tomatoes, trade allows Alabama to gain _____ bushels of tomatoes compared with autarky. I know the answer is 10 I just dont understand whyarrow_forward
- International trade: If Germany (which is a large country) imposes an import tariff on textile imports, we can conclude that: (a)The world price of textile rises, and Germany imports less. (b)The world price of textile stays constant, and Germany imports less. (c)The world price of textile falls, and Germany imports less. (d)The world price of textile stays constant, and Germany imports the same as before. Explain your answer clearly. Limit your explanation to 200 words.arrow_forwardAssume that Canada is an importer of televisions and that there are no trade restrictions. Canadian consumers buy 1 million televisions per year, of which 400 000 are produced domestically and 600 000 are imported. a. Suppose that a technological advance among Japanese television manufacturers causes the world price of televisions to fall by $100. Draw a graph to show how this change affects the welfare of Canadian consumers and Canadian producers and how it affects total surplus in Canada. a. After the fall in price, consumers buy 1.2 million televisions, of which 200 000 are produced domestically and 1 million are imported. Calculate the change in consumer surplus, producer surplus, and total surplus from the price reduction. c. If the government responded by putting a $100 tariff on imported televisions, what would this do? Calculate the revenue that would be raised and the deadweight loss. Would it be a good policy from the standpoint of Canadian welfare? Who might support…arrow_forwardOne big difference between tariffs and quotas is that tariffsa. raise the price of a good while quotas lower it.b. generate tax revenues while quotas do not.c. stimulate international trade while quotas inhibit it.d. hurt domestic producers while quotas help them.arrow_forward
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