Homework Chapter 34 Part 1
The below table shows the TV markets in South Korea and China. What is the equilibrium world price assuming a simple model of two countries only and free trade between the countries?
$28
Which of the following are examples of nontariff barriers?
1.a requirement for imported toys to pass a safety inspection before they can be sold in the U.S. 2.A requirement on imported car emissions to comply to U.S. air quality regulations before they can be sold in the U.S.
At a world price of $1000, Country B has a domestic quantity demanded of 10 computers while it has a domestic quantity supplied of only 6 computers. In a situation of free trade, how many computers will Country B be importing?
10-6=4 Computers
In a situation of free trade at the price of $25, if Country B imports 120 pounds of salt, then how many pounds of salt must Country A export?
120
The below graph shows the domestic motor oil market in the U.S (in millions of barrels). Based on the information given, how many barrels of motor oil does the U.S. import given that there is no protectionism?
273 Million Barrels
Assume that the current environment is one of partial protectionism. What is the total amount of kayaks the country represented in the graph below will export?
4000-2000=2000
At a world price of $5 with free and open trade, Country B must import calculators. If Country A has a domestic quantity demanded of 55 calculators and a domestic supply of 60 calculators, then how many calculators will Country B likely import?
5 Calculators
At a world price with free trade of $7,000, the Country A has a domestic supply of 500 pounds of sugar and a domestic quantity demanded of 300 pounds of sugar. How many pounds of sugar does Country A export?
500-300=200 Pounds
What is the total amount of cars the US will export with free trade?
750-200=550 Cars
According to the graph below, what is the total amount of TVs the US will export with free trade?
850-100=750
Which of the following will benefit domestic buyers of TVs?
an elimination of an import tariff on TVs from South Korea
Eliminating a tariff on imported cars will hurt
domestic producers of cars
Which of the following trade restrictions is a limitation on the quantity of imports?
import quotas
The below graph shows the domestic motor oil market in the U.S (in millions of barrels). Based on the information given, is the U.S. an importer or an exporter of motor oil? Note: Enter the word importer or exporter in the answer field.
importer
The World Trade Organization (WTO) superseded which organization?
the General Agreement on Tariffs and Trade (GATT)
