If Mexico subsidizes its textiles, making it impossible for U.S. producers to compete, O None of the above is a true statement. O the appropriate response is to threaten to retaliate with an equal subsidy and enact it if the Mexicans do not reduce their subsidy O the appropriate response is for the U.S. to enact an equal subsidy so that there is a level playing field of competition in textiles. O U.S. economic well-being would be maximized by purchasing subsidized textiles from Mexico. O a tariff on textiles would improve economic well-being in the U.S.

Give explanation also please

The Smoot-Hawley Act tried to divert consumer demand away from foreign products by Multiple Choice demanding local content requirements. O exporting more products to Europe. O subsidizing domestic businesses. O creating a trade deal with Canada and Mexico. O establishing tariff barriers.

12 11 10 9 8 7 6 2 G A B The tariff Di E F Domestic supply World price + tariff World price Domestic demand 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Q O decreases producer surplus by the area C. O increases producer surplus by the area C. O decreases producer surplus by areas C, D, E and F. O increases producer surplus by the area C + G.

The U.S. is an importer of ethanol, and let’s assume they are a price-taker in the world market.  Suppose that a technological advance in ethanol production in Brazil, the world’s largest exporter, drives down the world price of ethanol by $5.     Draw a graph and explain how this change in world price affects consumer surplus, producer surplus, and total surplus in the U.S. market.                                              Now suppose the U.S. government institutes an import tariff of $5 in response to the fall in the world price.  On your graph label the revenue raised by the tariff and the deadweight loss created (if it exists).  Who is likely to support this policy?                     Suppose that the fall in price is attributable not to a technological advance but to a subsidy from the Brazilian government to Brazilian ethanol producers.  How would this affect your analysis?

Price per Saddle Domeslic Supply A B. P2 World Price Tariff P1 G Domestic Demand Q1 Q2 Q3 Q4 Quantity of Saddles Before the tariff is implemented, what is the size of consumer surplus? O A OA + B OA+B+ C + D + E + F OG+C

Suppose Canada has a voluntary export restraint for lumber going to the U.S. Who captures the quota rents? O U.S. lumber producers O U.S. consumers O The U.S. government O Canadian lumber producers

Consider a smopec in the market for bread. The domestic equilibrium price without trade would be above the world market price. If the country imposes a tariff on imports, this would lead to O No changes, because the world price would go above the domestic equilibrium price O Consumer gaining surplus O Producers gaining surplus O An increase in total welfare

Suppose the U.S. imposes a trade embargo onNorth Korea in order to exert political pressureon the government. Consider how the embargowill affect U.S. producers. Under what conditionswould they support the embargo? Why mightthey oppose it?

Consider the market below for a large country. Focus on the equilibrium when the country imposes a tariff. How large is the tariff? Price $25 $20 $15 10 20 30 40 Quantity Select one: O a. $20 O b. $25 O c. $10 O d. $15