Chapter 15 - Homework 9
The tariff revenue is $_____ million.
125
Choose the statement that is incorrect.
A tariff creates a social loss because the domestic government loses revenue.
With international trade, _______. With international trade _______.
Americans buy more lumber and Canadians buy more wine; Americans produce less lumber and Canadians produce less wine
Which of the following activity is an example of dumping?
Dell exports PCs to India at a price 20 percent lower than the cost of producing them.
______ that we buy from people in other countries and ______ that we sell to people in other countries.
Imports are the goods and services; exports are the goods and services
______ gain from international trade in rice. ______ lose from international trade in rice.
U.S. consumers; U.S. producers
The tools that a country can use to restrict international trade include all of the following except _______.
changes in the foreign exchange rate
News Clip: The End of Cheap Chinese Goods Beginning in the 1990s, as China emerged as a major exporter, the prices of many goods fell. For example, clothing prices fell through 2007 when they bottomed out. But as China's labor costs started to rise, clothing production moved from China to other countries. Read the news clip, then answer the following question. Choose the statement that is incorrect. When a country exports cheap clothing to the United States, _______.
consumers from the exporting country gain
When a good is imported, _______.
consumers gain because they pay a lower price and increase the quantity they consume
When a good is exported, _______.
consumers lose because they pay a higher price and decrease the quantity they consume
When the United States places a tariff on a good, the U.S. ______ and the U.S. ______ from the tariff.
consumers of the good lose; producers of the good gain
With an import quota, the quantity of vitamins imported into the United States ______ by _____ million bottles a year.
decreases; 50
Can protection save jobs and the environment and prevent workers in developing countries from being exploited? Protection _______.
does not save jobs and the environment and does not prevent workers in developing countries from being exploited
We _______ items in which we have a comparative advantage.
export
When the world price rises, this country ______ corn.
exports more
Based on the graph. With international trade, wholesalers ______ and rose growers ______.
gain; lose
U.S. imports are _____ produced in _____ and sold in _____.
goods and services; any other country; the United States
U.S. exports are _____ produced in _____ and sold in _____.
goods and services; the United States; any other country
If the United States and Canada did not trade internationally, the price of lumber in the United States would be ______ than the world price and the price of lumber in Canada would be ______ than the world price.
greater; less
The price of athletic coaching services in the United States is _____ with international trade than without international trade.
higher
The United States _____ rice.
imports
To protect domestic industries from international competition, a country might ______ .
impose tariffs or import quotas and subsidize exports
The increased use of corn to produce biofuel _______ the world price of corn.
increases
With an import quota, domestic production _______ and consumption _______.
increases; decreases
What is rent seeking? Rent seeking _____.
is lobbying and other political activity that aims to capture the gains from trade
If the United States and Canada did not trade internationally, the price of wine in the United States would be ______ than the world price and the price of wine in Canada would be ______ than the world price.
less; greater
Which of the following is an example of an import quota? The United States _____ .
limits the quantity of auto parts the U.S. car makers may buy from China
When a country opens up to free international trade, domestic producers of the imported good _____ and domestic consumers of the imported good _____.
lose; win
The price of coffee in the United States is ______ with international trade than without international trade.
lower
Draw a point on the graph to show the price and quantity of roses bought in the United States with no international trade. Label it 1. Draw a point to show the price and quantity of roses bought in the United States with international trade. Label it 2. Draw a point to show the price and quantity sold by U.S. rose growers with international trade. Label it 3.
picture
The net gain from international trade is _______.
positive. Consumers gain more than producers lose with imports, and producers gain more than consumers lose with exports.
Tariff is a _____ imposed on a good when it is _____.
tax; imported
When the U.S. government imposes an import quota, all of the following are true except _______.
the U.S. government gains
With an import quota, society loses because the loss to consumers exceeds the gains of domestic producers and importers.
true
As a result of trade in athletic coaching services, U.S. producers of athletic coaching services ______ and U.S. consumers of athletic coaching services ______.
win; lose
When a country opens up to free international trade, domestic producers of the exported good _____ and domestic consumers of the exported good ______.
win; lose
Offshore outsourcing is _____ goods, components, or services _____ that brings gains from trade identical to those of any other type of trade.
buying; from firms in other countries
Tariffs and other restrictions on free international trade _______ the gains from trade and _______ in the social interest.
decrease; are not
The quantity of bananas consumed in Australia ______ and the quantity of bananas grown in Australia ______.
decreases; increases
Suppose that the world price of bananas is 18 cents a pound and that when Australia does not trade bananas internationally, the market price of bananas in Australia is 12 cents a pound. If Australia opens up to international trade, Australia ______ bananas. The price of bananas in Australia ______.
exports; rises
Suppose that the world price of rice is 30 cents a pound, the United States does not trade internationally, and the equilibrium price of rice in the United States is 40 cents a pound. The United States then begins to trade internationally. The price of rice in the United States ______. U.S. consumers buy ______ rice.
falls; more rice and U.S. firms produce less; imports
When a country opens up to free international trade, domestic producers of the exported good receive a ______ price and sell a ______ quantity of it.
higher; greater
Domestic consumers of the exported good pay a ______ price and purchase a _______ quantity of it.
higher; smaller
As a result of trade in coffee, the U.S. producers of coffee ______ and U.S. consumers of coffee ______.
lose; win
Domestic consumers of the imported good pay a ______ price and purchase a _______ quantity of it.
lower; greater
Both the United States and Canada produce lumber and wine. Canada exports lumber and imports wine. The United States imports lumber and exports wine. A country that trades internationally imports a good at a price ______ than the price of the good in the domestic market before the country began to trade internationally. And it exports a good at a price ______ than the price of the good in the domestic market before the country began to trade internationally.
lower; higher
When a country opens up to free international trade, domestic producers of the imported good receive a ______ price and sell a ______ quantity of it.
lower; smaller
When the United States imposes a tariff on cheese imports, the price of cheese in the United States ______ and U.S. cheese imports ______
rises; decrease
When the United States imposes a tariff on cheese imports, U.S. producers of cheese _______ and U.S. consumers of cheese _______.
win; lose
