Econ Macro (book Only)
6th Edition
ISBN: 9781337408745
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 17, Problem 6P
Sub-part
A
To determine
The net gains and losses that each of the stakeholders face while imposing the trade restrictions.
Sub-Part
B
To determine
The deadweight loss from the diagram.
Sub-Part
C
To determine
The response to such policies from the industries that use U.S steel.
Sub-Part
D
To determine
The government revenues generated from this policy.
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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.
14. Use Exhibit 2. Which of the following statements is (are) correct?
(x) In autarky, the relative price of hats, in terms of caps, in Canada is greater than the relative price of
hats in Mexico.
(y) Mexico has both an absolute advantage and comparative advantage in the production of hats, and it
would be willing to trade with Canada at terms of trade equal to 20 caps for 12 hats.
(z) Canada does not have an absolute advantage in either caps or hats
but it has a comparative advantage in caps and it would be willing to
trade with Mexico at terms of trade equal to 20 caps for 12 hats.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (y) only
Exhibit 2
Output per labor hour
Caps Hats
Canada
8
5
Mexico
6
15. Suppose that a worker in Mahogany can produce either 239 wooden chairs or 127 wooden desks per year,
and a worker in Poplar can produce either 284 wooden chairs or 144 wooden desks per year. There are
100 workers in Mahogany and 100 workers in Poplar.…
D
Question 10
Suppose before tariff, the price of imported avocado from Mexico to United States is
$1.06 and 898 avocados are imported. After a 15 percent tariff, number of avocados is
decreased to 772. What's the dead weight loss caused by this tariff?
[Hint: Round your answer to 2 decimal places
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