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