Exam 15: International Trade Policy

Most economists agree that valid reasons for protecting trade include which of the following? I. The economies of scale argument. II. The saving jobs argument. III. The protection of high wages argument.

The current U.S. average tariff rate

The effect of an import quota is to

The figure shows the market for helicopters in the United States, where D is the domestic demand curve and S is the domestic supply curve. The United States trades helicopters with the rest of the world at a price of $36 million per helicopter. -In the figure above, with international trade U.S. companies buy helicopters per year.

How does a tariff affect the government's revenue? How does a quota affect the government's revenue?

Usually the imposition of trade barriers affecting a particular good benefits _ people domestically, each of whom gains a .

What is "rent seeking?" How does it apply to restricting imports?

During the first 6 months of 2008, the United States imported from Africa, Asia, and Latin America more than 1.6 billion pounds of coffee and did not export any coffee. Based on this, we know definitively that:

In poorer countries, free trade _ _ the demand for labor in these countries and the wages paid in these countries.

During the first 6 months of 2008, the European Union (EU) initiated an anti- dumping case against China for imports of taper candles. What is dumping?

Since the early 1930s, the average tariff rate in the United States has

The United States has a comparative advantage in producing airplanes if

In 2006, the European Union (EU) threatened to ban imports of long- grain rice because traces of genetically modified rice were found mixed in to commercial supplies. Instead of a complete ban, suppose the EU placed a tariff on the import of long- grain rice. Which of the following would be an outcome of this tariff?

As a result of an increase in tariffs, imports decrease and government revenue increases.

An import quota specifies the

A tariff will benefit

During 2005- 2006 Europe imported more than $70 million worth of US long- grain rice. How is the gain from trade distributed?

The figure shows the market for helicopters in the United States, where D is the domestic demand curve and S is the domestic supply curve. The United States trades helicopters with the rest of the world at a price of $36 million per helicopter. -In the figure above, the United States helicopters per year.

Who benefits from imports?

Usually the removal of trade barriers affecting a particular good benefits _ people domestically, each of whom gains a .