When exports are subsidized, _____. a. the amounts of actual labor, raw material, and capital costs of production decrease b. nations export products in which they have a comparative advantage c. gains from trade in terms of world output increase d. nations export products in which they have an absolute advantage e. income is transferred from tax payers to the exporters of subsidized goods
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the amounts of actual labor, raw material, and capital costs of production decrease
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nations export products in which they have a
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nations export products in which they have an
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income is transferred from tax payers to the exporters of subsidized goods
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- 1. Suppose the automobile industry in Dreamland is required to pay 3 percent of surcharge on every car imported to the country. This is an example of a a.export tax b.export restriction c.tariff d.trade liberalizationIf a large country in the world trade instituted a large set of subsidies for its exports, this must Select one: A. have no effect on its terms of trade. B. decrease its marginal propensity to consume. C. improve its terms of trade. X D. harm world terms of trade. E. harm its terms of trade.7. Consider a country that imports a good from abroad.For each of following statements, state whether it istrue or false. Explain your answer.a. “The greater the elasticity of demand, the greaterthe gains from trade.”b. “If demand is perfectly inelastic, there are no gainsfrom trade.”c. “If demand is perfectly inelastic, consumers donot benefit from trade.”
- 1.The US government subsidies distort the global market and give American producers a tremendous advantage aimed at limiting cotton apparel imports from Japan to the U.S. True False 2.Although it only constituted eight percent of Nigeria’s exports in 1961, ______ represented eighty percent of Nigeria’s government revenue by 1974. oil exports industrial goods agriculture services 3.The Bretton Woods Conference envisioned the creation of all of the following institutions, except…? The International Monetary Fund (IMF). The International Trade Organization (ITO). The Bretton Woods Conference envisioned the creation of all three of these institutions The World Bank. 4.In 2007, the ________ experienced a decline in the influx of money, a drop in the interest income, and a deficit of about $400 million a year. International Monetary Fund The United Nations Development Index The World Trade Organization World BankD Question 24 Which of the following is NOT an argument for restricting trade? O The Infant Industry Argument O Trade protection will increase the total surplus for the market protected Trade protection will increase jobs O Trade protection will decrease inequalityConsider a small country that exports steel. Suppose that a "pro-trade" government decides to subsidize the export of steel by paying a certain amount for each ton sold abroad. 1. How does this export subsidy affect the 1. domestic price of steel, 2. the quantity of steel produced, 3. the quantity of steel consumed, and 4. the quantity of steel exported? 2. How does it affect 1. consumer surplus, 2. producer surplus, 3. government revenue, and 4. total surplus? 3. Is it a good policy from the standpoint of economic efficiency? (Hint: the analysis of an export subsidy is similar to the analysis of a tariff)
- Suppose the European Union imposes trade sanctions (export quotas) on food sold to Russia. Imagine other nations do not increase their food exports to Russia. Which of the following does not happen? A. food prices increase in Russia B. consumer surplus declines in Russia C. food prices increase in the European Union D. export revenues decline in the European UnionExplain how a subsidy on agricultural goods like sugar adversely affects the income of foreign producers of imported sugar.8) Suppose the United States imposes a tariff or quota on sugar imports. For each of the following, enter the letter G ifit will gain from the tariff or quota or enter the letter L if it will lose from the tariff or quota.Domestic sugar producers and their workers _______Consumers _______Industries that use sugar and their workers _______9) _______________ are goods and services produced domestically but sold to other countries. _______________ are goods and services bought domestically but produced in other countries._______________ are taxes imposed by a government on imports of a good into a country. a,Tarrifs b, exports c,quotas D,Imports 10) Which of the following are non-tariff barriers to trade?National security grounds.Health and safety requirements.Embargoes.All of the above.
- 6. The arguments for restricting trade Suppose there is a policy debate regarding the United States' imposing trade restrictions on imported semiconductors.. Read the following scenario and answer the question that follows. A political pundit argues that the government should impose a tariff on semiconductors because they are a necessary input into the production of various weapons. Free trade, she contends, would make the United States overly dependent on foreign countries for the supply of semiconductors and thus, in case of war, unable to make enough weapons to defend itself. Which of the following justifications is the pundit using to argue for the trade restriction on semiconductors? O Using-protection-as-a-bargaining-chip argument O Jobs argument O National-security argument Unfair-competition argument Infant-industry argumentA tariff is A. a tax imposed on imports. B. any non-subsidy used to increase trade. C. any non-tax action used to restrict trade. D. a subsidy granted to imports.1. Assume 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. 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. b. 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…