Exam 15: International Trade Policy

A key difference between imposing tariffs as opposed to imposing quotas is that

In 2012 the United States government tightened the import quota on sugar by decreasing the quantity of sugar that could be imported. Which of the following groups would gain from this change? I. U.S. consumers of sugar II. U.S. producers of sugar III. Foreign producers of sugar

Suppose that the country of Pacifica sold its cars in Atlantica for less than it costs to produce the cars. Pacifica could be accused of

Which of the following reasons explains why rich countries persistently restrict textile imports from poor countries?

Which of the following are reasons economists consider valid for trade protection? I. Protection penalizes countries that have weak environmental standards. II. Protection limits dumping of low-wage jobs into the domestic economy. III. Protection prevents low-wage jobs in foreign countries from lowering wages in the United States.

When a rich nation buys a product made in a poor nation, in the poor nation the demand for labor ________ and the wage rate ________.

________ gains from imports and ________ gains from exports.

Since the 1930s, tariff levels in the United States have

Consider a market that sells some of its goods as exports. Who does NOT benefit?

Lowering the tariff on good X will

In industrial countries, there is more reliance on ________, as opposed to ________ for government revenue.

A major purpose of tariffs is to

In a market open to international trade, at the world price the quantity demanded is 150 and quantity supplied is 200. This country will

U.S. tariffs peaked in

A tariff is a

Because the price of an exported good ________, then ________ lose from exports.

An import quota directly restricts ________ and are designed to protect domestic ________.

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.

Tariffs and import quotas differ in that

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?