Exam 15: International Trade Policy

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above,with international trade the United States ________ million shirts per year.

Tariffs

In 2012 the U.S.government claimed that Chinese producers of solar panels were dumping panels in the United States,which means that the producers were accused of

If the United States imposes a tariff of $1 per imported shirt,the higher tariff

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt. -In the figure above,with the tariff the United States imports ________ million shirts per year.

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?

Selling a product in a foreign nation at a price less than its cost of production is called

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

Over the past 80 years,the United States has reduced its average tariff rate so today it is less than 5 percent.

Reducing a tariff will ________ the domestic production of the good and ________ the total domestic consumption of the good.

Using calculations of the cost to Americans per job saved in protected industries,it can be concluded that

Import quotas ________ the price of imported goods and ________ the quantity consumed in the nation imposing the quota.

Economists usually agree with which of the following arguments that favor protectionism?

An import quota protects domestic producers by

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.

Average tariff levels in the United States in the last decade are

In 2006,European Union tariff on imported bananas from Latin America was €176 a ton. Suppose 2.5 million tons of bananas were imported in 2006 but then the tariff decreased to €152 a ton in 2007 and as a result,3 million tons were imported in 2007. What is the tariff revenue in 2007?

Discuss reasons why we see trade restrictions.Are any of these reasons valid?

Based on the table below,at what world price would the country import? Price QDemanded QSupplied 2 100 70 4 95 75 6 90 80 8 85 85 10 80 90 12 75 95

A tax that is imposed by the importing country when an imported good crosses its international boundary is called