Which of the following is likely to occur if a tariff is imposed on the market? (Assume that the market had free trade initially) O Imports will increase and domestic production will decrease. O Imports will decrease and domestic production will increase. O Imports will decrease and domestic production will decrease. O Imports will increase and domestic production will increase,

Which of the following is likely to occur if a tariff is imposed on the market? (Assume that the market had free trade initially) O Imports will increase and domestic production will decrease. O Imports will decrease and domestic production will increase. O Imports will decrease and domestic production will decrease. O Imports will increase and domestic production will increase,

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter19: Economic Development

Section: Chapter Questions

Problem 2.3P

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Canada exports canola oil to Japan. Therefore, Japan must have the comparative advantage in the production of canola oil, and its autarkic price is higher than the free trade price. O Japan must have the comparative advantage in the production of canola oil, and its autarkic price is lower than the free trade price. Canada must have the comparative advantage in the production of canola oil, and its autarkic price is higher than the free trade price. Canada must have the comparative advantage in the production of canola oil, and its autarkic price is lower than the free trade price.
If a nation that imports a good imposes a tariff, itwill increasea. the domestic quantity demanded.b. the domestic quantity supplied.c. the quantity imported from abroad.d. the efficiency of the equilibrium
Consider a smopec in the market for bread. The domestic equilibrium price without trade would be above the world market price. If the country imposes a tariff on imports, this would lead to O No changes, because the world price would go above the domestic equilibrium price O Consumer gaining surplus O Producers gaining surplus O An increase in total welfare
The world price of a ton of steel is $100. The price of a ton of steel in Mexico was $250 before opening the economy to trade. After Mexico opened the economy to trade, Mexico began O exporting steel and the price of steel in Mexico decreased to $100. O Importing steel and the price of steel in Mexico remained at $250. O importing steel and the price of steel in Mexico decreased to $100. O exporting steel and the price of a steel in Mexico remained at $250
Recently, US imposed new tariffs on Canadian softwood lumber. Lumber is intensively used in the construction and renovation projects for single-family homes. US Mkt. for lumber. Pw is the price of lumber available to domestic construction firms before the imposition of tariffs. On the graph, show (1) the price of lumber with tariff (PT); (2) quantity of lumber produced by domestic producers (Qsd); (3) quantity of lumber bought by domestic construction firms (Qdd); (4) quantity of lumber imported (IM); (5) revenue from tariff (TR); (6) Tariff deadweight loss (DWL). (5) With up/down arrows, indicate the change in the price of lumber available to domestic construction firms___, quantity of lumber available to domestic construction firms__ , quantity of lumber produced in the US__. In the market for lumber: 1. (10%) Label clearly the supply and demand curves, S and D, and . 2. (60%) On the graph, construct and label clearly (1) the price after the introduction of the tariff (PT) (2)…
France exports wine and imports beef. Suppose that French wine becomes more fashionable globally and, hence, the price of wine relative to the price of beef increases in world markets. Then: Select one: a. French exports of wine will increase, French consumption of wine will decrease and French imports of beef will increase b. French exports of wine will increase, French consumption of wine will increase and French imports of beef will decrease Oc. French exports of wine will increase, French consumption of wine will increase and French imports of beef will increase d. French exports of wine will increase, French consumption of wine will decrease and French imports of beef will decrease
Suppose the domestic price of wheat is $3.50 per bushel in Canada, while the world price is $4.00 per bushel. Assuming no transportation costs, Canada will: O have a domestic shortage of wheat. O import wheat. Ⓒexport wheat. O neither export nor import wheat.
An export subsidy always makes a country worse off on net. O True O False
Demand in a domestic market is represented by the curve P = 200 - Q. Supply is represented by P = 20 + 0.5Q. The world price is 120. If this country opens the market to trade it will O Import 120 units. O Export 120 units. O Export 60 units. O Import 60 units.
What is the so-called home-market effect? Which of the following statements on the home market effect are true? а. Countries with a large (and possibly older) domestic market for a particular commodity are more likely to be only importers of the commodity, but they only very rarely turn into sufficient exporters. b. Countries with a large (and possibly older) domestic market for a particular commodity are more likely to have become exporters of such a commodity too. C. Countries with large domestic markets are become exporters of industrial commodities, while smaller nations focus on services and agriculture. d. The home-market effect is a special condition under which the WTO tolerates the introduction of new tariffs.
19. Mention two possible situations when dealing with exports and imports.
donetic P Tariff Tar Revenue Damestic Quantity b. What are the price-quantity effects of this tariff on the following? (Assume the country imposing the tariff is a small part of the world market) Domestic consumers: Price will (Click to select) and quantity will (Cick to select) v Domestic producers: Price will (Cick to select) and quantity will [(Clck to select) v Foreign exporters: Price will (Click to select) and quantity will (Cick to select) Price