Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 9, Problem 4MCQ
To determine
Among the given options, identify the correct one on the basis of below statement:
Free trade between china and U.S. leads winner as ____and losers as _____is to be determined.
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Students have asked these similar questions
Suppose that the United States increases its tariff on steel imports. Steel prices to U.S. consumers would be expected to:
(A) Increase, and the foreign demand for U.S. exports would increase
(B) Decrease, and the foreign demand for U.S. exports would increase
(C) Increase, and the foreign demand for U.S. exports would decrease
(D) Decrease, and the foreign demand for U.S. exports would decrease.
If higher tariffs, such as those enacted by the Smoot-Hawley trade bill, reduce the imports of the United States, which of the following will
be most likely to occur?
a. U.S. employment will increase.
b. The unemployment rate of the United States will decline.
c. U.S. exports will increase because foreigners will want to buy more from U.S. producers.
d.
U.S. exports will decline because foreigners will be earning fewer of the dollars needed to purchase goods and services from
Americans.
Consider a small country that exports steel. Suppose that a “pro-trade” government decides to subsidize the export of steel by paying a certain amount for each ton sold abroad. How does this export subsidy (similar to a tariff) affect the domestic price of steel, the quantity of steel produced, the quantity of steel consumed, and the quantity of steel exported? How does it affect consumer surplus, producer surplus, and government revenue? Is it is a good policy from the standpoint of economic efficiency?
Chapter 9 Solutions
Foundations of Economics (8th Edition)
Ch. 9 - Prob. 1SPPACh. 9 - Prob. 2SPPACh. 9 - Prob. 3SPPACh. 9 - Prob. 4SPPACh. 9 - Prob. 5SPPACh. 9 - Prob. 6SPPACh. 9 - Prob. 7SPPACh. 9 - Prob. 8SPPACh. 9 - Prob. 9SPPACh. 9 - Prob. 10SPPA
Ch. 9 - Prob. 11SPPACh. 9 - Prob. 1IAPACh. 9 - Prob. 2IAPACh. 9 - Prob. 3IAPACh. 9 - Prob. 4IAPACh. 9 - Prob. 5IAPACh. 9 - Prob. 6IAPACh. 9 - Prob. 7IAPACh. 9 - Prob. 8IAPACh. 9 - Prob. 9IAPACh. 9 - Prob. 1MCQCh. 9 - Prob. 2MCQCh. 9 - Prob. 3MCQCh. 9 - Prob. 4MCQCh. 9 - Prob. 5MCQCh. 9 - Prob. 6MCQCh. 9 - Prob. 7MCQ
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- If an economy formerly in autarky opens to trade, and discovers that there is excess supply of a good from the world market, then they would expect to see domestic consumers buying __________ of a good, domestic producers selling __________, and at a __________ price. a. more; less; higher b. more; more; higher c. more; less; lower d. less; more; higher e. less; more; lowerarrow_forwardWhat is South Koreas' Major exports and foreign investment in the countryarrow_forward10 24. Suppose a small country experiences economic growth that leads to an increased willingness to trade. The country's terms of trade will _____ because the prices of its exports will_____ relative to the price that it has to pay for its imports.arrow_forward
- Berdasarkan jadual berikut yang menunjukkan kemungkinan kadar syarat dagangan negara I dan permintaan import barang Y negara I pada setiap kadar syarat dagangan. Given the following table showing possible terms of trade for country I and country I's corresponding demand for imports of good Y at each terms of trade: Titik Kadar Syarat Dagangan Kuantiti Permintaan Import barang Y oleh Negara I Term of Trade Point Country I's quantity demand of import of Y (a) 1X:1Y or Px/Py= 1 20 units (b) 1X:2Y or Px/Py=2 46 units (c) 1X:3Y or Px/Py=3 69 units (d) 1X:4Y or Px/Py= 4 84 units a) Kirakan jumlah penawaran eksport barang X oleh Negara I pada setiap kadar syaratdagangan dan lakaran keluk tawaran yang berkaitan. Calculate the supply of exports of good X by country I at each terms of trade and plot the resulting offer curve. b) Kenapa negara yang mengeksport barang X sanggup untuk mengimport lebih banyak barang Y apabila kadar syarat dagangan meningkat ? Why would a county exporting good X be…arrow_forwardSuppose that there are only two countries (the United States and Mexico) and only two goods ( Automobiles and Corn). In the U.S., it takes 120 labor hours to produce a car and 15 labor hours to produce a bushel of corn. In Mexico, it takes 200 labor hours to produce a car and 30 labor hours to produce a bushel of corn. Ignoring tariffs, taxes, the repeal of USMCA, or the Border Wall, which countries should be exporting which good?arrow_forwardTerms of trade Suppose that Greece and Austria both produce oil and wine. Greece’s opportunity cost of producing a bottle of wine is 4 barrels of oil, while Austria’s opportunity cost of producing a bottle of wine is 10 barrels of oil. By comparing the opportunity cost of producing wine in the two countries, you can tell that ______(Greece / Austria) has a comparative advantage in the production of wine, and ______(Greece / Austria) has a comparative advantage in the production of oil. Suppose that Greece and Austria consider trading wine and oil with each other. Greece can gain from specialization and trade as long as it receives more than _______(1/4barrel / 1/10barrel / 1barrel / 4barrels / 10barrels) of oil for each bottle of wine it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than _______(1/4barrel / 1/10barrel / 1barrel / 4barrels / 10barrels) of wine for each barrel of oil it exports to Greece. Based on answers…arrow_forward
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