ECO chapter 9
If the United States threatens to impose a tariff on Colombian coffee if Colombia does not remove agricultural subsidies, the United States will be
worse off if Colombia doesn't remove the subsidies in response to the threat
Refer to Figure 9-3. The size of the tariff on computers is
$100
Refer to Figure 9-2. With trade, the price of scooters in this country is
$11, with 400 scooters produced in this country and another 640 scooters imported
Suppose China exports televisions to the United States and imports wine from Argentina. This situation suggests
China has a comparative advantage relative to the United States in producing televisions, and Argentina has a comparative advantage relative to China in producing wine
Import quotas and tariffs produce some common results. Which of the following is not one of those common results?
Producer surplus of domestic producers decreases
Which of the following is not a commonly-advanced argument for trade restrictions?
The efficiency argument
Refer to Figure 9-1. From the figure it is apparent that
Uganda will export coffee if trade is allowed.
Refer to Figure 9-2. If this country allows free trade in scooters
consumers will gain and producers will lose
Refer to Figure 9-3. The imposition of a tariff on computers
decreases the number of computers imported by 140.
Refer to Figure 9-1. When trade in coffee is allowed, producer surplus in Uganda
increases by the area B + D + G.
Assume, for China, that the domestic price of apples without international trade is higher than the world price of apples. This suggests that, in the production of apples
other countries have a comparative advantage over China and China will import apples
The North American Free Trade Agreement
reduced trade restrictions among Canada, Mexico, and the United States