The following table shows the product market in a small country. Quantity Demanded Domestically Quantity Supplied Domestically 0 110 30 100 90 90 80 70 60 120 150 180 If the world price of the product is $80 and a tariff of $10 per unit is applied to imports of the product, then the tariff would generate government revenues Multiple Choice $400 $800. $700 Price $120 110 100 90 80 70 $10

What are used to convince other governments to voluntarily limit their exports and are in effect export quotas

Price of Wagons gain by $240 lose by $240 gain by $120 lose by $75 $18.5 8 5 1 0 40 70 90 Domestic Supply World Price Domestic Demand Quantity of Wagons Refer to the figure above. If this country allows free trade in wagons, how much will consumers gain or lose?

The United States imports a lot of cars, despite having its own auto industry. Each of the following statements are arguments some people could make for restricting imports of cars into the United States. For each statement, identify the threat to the U.S. industry that the argument is trying to counter, and identify the opportunities that would be given up if the argument wins. SELECT THE CORRECT ANSWER a. “Foreign manufacturers are offloading their cheap cars onto the U.S. market. We should stop this so that consumers have access to higher-quality U.S. cars.” -National security requires that strategically important goods be produced domestically. -Protection can help infant industries develop. -Foreign competition may lead to job losses. -Anti-dumping laws prevent unfair competition. -Trade should not enable foreign firms to skirt U.S. regulations.   b. “We must foster the innovation of small car companies, like Tesla. Allowing foreign electric vehicle manufacturers…