2nd Edition

ISBN: 9781947172340

Author: Timothy Taylor, Steven A. Greenlaw

Publisher: OpenStax

Concept explainers

A tariff is a kind of tax that is charged on exported and imported items. It means tariff is charged on both kinds of goods i.e., exported and imported. However, some goods may be exempted from this kind of tariff. Protective Tariffs refer to the charges…

Textbook Question

Chapter 20, Problem 53CTQ

Economists sometimes say that protectionism is the “second-best” choice for dealing with any particular problem. What they mean is that there is often a policy choice that is more direct or effective for dealing with the problemâ€”a choice that would still allow the benefits of trade to occur. Explain why protectionism is a “second-best” choice for

helping workers as a group
helping industries stay strong
protecting the environment
advancing national defense

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Chapter 20, Problem 52CTQ

Chapter 20, Problem 54CTQ

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Many U.S. firms import products or parts from other countries indstead of producing them domestically. In fact, most iPhones are other smartphones are made not in the U.S. but in China. Many politicians, notably Presidents Trump and Biden, and commentators argue that the government should protect domestic jobs in this country by penalizing the practice of importing from other countries. How are Americans affected by this practice? Does this hurt Americans by international trade as they are consumers and ordinary resident in the U.S.?

Use the chart to answer the following question. Reduce the number of quotas Growth of trade Reduce protective tariffs Increased number of exports Variety of goods and services What is the BEST title for the chart? O A. Arguments for Protectionism B. Benefits of Free Trade O C. Disadvantages of Free Trade O D. Advantages to Trade Barriers

5. Protectionisma. is the use of cheap labor to protect firms from paying high wages.b. is the use of trade barriers to protect domestic firms from foreign competition.c. refers to reductions in tariffs and other barriers that protect consumers frompaying high prices.d. refers to the use of copyright and trademark laws to protect inventors and artistsfrom losing the rights to their creative efforts.e. refers to the use of non-tariff barriers to protect the environment in the home country.6. Match each concept to its definition.a. World Trade Organization (WTO) (1). Taxes imposed by a government ongoods imported into a country.b. Quotas (2) Argument against globalization claimingthat the WTO tends to favor high-incomecountries.c. USMCA agreement (3) An international organization that overseesinternational trade agreements.d. Tariffs (4) A numerical limit a government imposes onthe quantity of goods that can be importedinto a country.e. WTO bias (5) A free trade agreement signed by the…

Chapter 20 Solutions

PRINCIPLES OF MICROECONOMICS (OER)

Ch. 20 - Explain how a tariff reduction causes an Increase...Ch. 20 - Explain how a subsidy on agricultural goods like...Ch. 20 - Explain how trade barriers save jobs in protected...Ch. 20 - Explain how trade barriers raise wages in...Ch. 20 - How does international trade affect working...Ch. 20 - Do the jobs for workers in low-income countries...Ch. 20 - How do trade barriers affect the average Income...Ch. 20 - How does the cost of saving jobs in protected...Ch. 20 - Explain how predatory pricing could be a...Ch. 20 - Why do low-income countries like Brazil, Egypt, or...

Ch. 20 - Explain the logic behind the race to the bottom...Ch. 20 - What are the conditions under which a country may...Ch. 20 - Why is the national security argument not...Ch. 20 - Assume a perfectly competitive market and the...Ch. 20 - What is the difference between a free trade...Ch. 20 - Why would countries promote protectionist laws,...Ch. 20 - What might account for the dramatic increase in...Ch. 20 - How does competition, whether domestic or foreign,...Ch. 20 - What are the gains from competition?Ch. 20 - Who does protectionism protect? From what does it...Ch. 20 - Name and define three policy tools for enacting...Ch. 20 - How does protectionism affect the price of the...Ch. 20 - Does international trade, taken as a whole,...Ch. 20 - Is international trade likely to have roughly the...Ch. 20 - How is international trade, taken as a whole,...Ch. 20 - Is international trade likely to have about the...Ch. 20 - What are main reasons for protecting infant...Ch. 20 - What is dumping? Why does prohibiting it often...Ch. 20 - What is the race to the bottom scenario?Ch. 20 - Do the rules of international trade require that...Ch. 20 - What is the national interest argument for...Ch. 20 - Name several of the international treaties where...Ch. 20 - What is the general trend of trade barriers over...Ch. 20 - If opening up to free trade would benefit a...Ch. 20 - Who gains and who loses from trade?Ch. 20 - Why is trade a good thing if some people lose?Ch. 20 - What are some ways that governments can help...Ch. 20 - Show graphically that for any tariff, there is an...Ch. 20 - From the Work It Out Effects of Trade Barriers,...Ch. 20 - If trade barriers hurt the average worker in an...Ch. 20 - Why do you think labor standards and working...Ch. 20 - How would direct subsidies to key industries be...Ch. 20 - How can governments identify good candidates for...Ch. 20 - Microeconomic theory argues that it is...Ch. 20 - How do you think Americans would feel if other...Ch. 20 - Is it legitimate to impose higher safety standards...Ch. 20 - Why might the unsafe consumer products argument be...Ch. 20 - Why might a tax on domestic consumption of...Ch. 20 - Why do you think that the GAIT rounds and, more...Ch. 20 - An economic union requires giving up some...Ch. 20 - What are some examples of innovative products that...Ch. 20 - In principle, the benefits of international trade...Ch. 20 - Economists sometimes say that protectionism is the...Ch. 20 - Trade has income distribution effects. For...Ch. 20 - Assume two countries, Thailand (T) and Japan (J),...Ch. 20 - You have just been put in charge of trade policy...Ch. 20 - The country of Pepperland exports steel to the...

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