Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
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Chapter 19, Problem 10E
To determine
Policies and trade.
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Economics
A trade expert compares the modern tariffs to the
Depression-era Smoot-Hawley tariffs. He says
“The economic impact is going to take years to
play out." What was the effect of the Smoot-
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a) Both imports and exports rose by nearly about the same amount, the trade
balance remained about the same, and the total volume of trade increased.
b) Both imports and exports fell by nearly about the same amount, the trade
balance remained about the same, and the total volume of trade decreased.
c) Imports decreased, and the trade balance increased. The total volume of
trade was nearly unchanged.
d) Imports decreased, and the trade balance was nearly unchanged. The total
volume of trade decreased.
In the picture below is the full question. The highlighted one is my guess which is wrong.
Which of the following best explains how subsidies work as a trade restriction?
A)They increase competition for a new business, forcing it to be more productive, and lowering prices for consumers.
B)They limit the import of foreign goods and create shortages.
C)They place a tax on foreign goods, making foreign good expensive, increasing demand for domestic goods(this one is wrong)
D)Governments pay producers, offsetting costs, increasing supply, lowering prices, and reducing foreign competition.
You work for a Nova Scotia Company trying to successfully enter the cranberry market in Australia.
In the entry country (Australia), what is the state of well-being? Do people have proper access to food, nutrition, housing, and healthcare? How do they spend their leisure time and how much money do they spend on recreation? Are retired citizens financially sound?
Chapter 19 Solutions
Macroeconomics (Fourth Edition)
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