Econ 1202 questions

Steel producers in the United States observe that foreign sales of U.S. steel have drastically declined due to stringent trade policies adopted by foreign governments. The lobbying efforts of U.S. steel manufacturers induced the domestic government to introduce a tax on the import of steel and help stimulate the domestic sales of​ locally-produced steel. Which of the following examples describes a similar government​ policy? A. A production subsidy provided by the Indian government to an industry that generates substantial employment opportunities. B. A tariff introduced by the Mexican government on tobacco imports from Brazil in retaliation for unfair treatment of Mexican tobacco exports to Brazil. C. A tariff applied on toy imports from China in reaction to incidents that certain Chinese firms were unable to meet international safety standards. D. A production subsidy provided by the South African government to stimulate domestic production of a​ high-technology good with positive spillover effects. E. A tariff imposed by the Sri Lankan government on the import of cotton textiles from China in order to protect domestic producers from foreign competition.

B. A tariff introduced by the Mexican government on tobacco imports from Brazil in retaliation for unfair treatment of Mexican tobacco exports to Brazil.

Which of the following statements is true about the importance of trade in the U.S.​ economy? A. Only a few U.S. manufacturing industries depend on trade. B. While exports and imports have been steadily rising as a fraction of​ GDP, not all sectors of the U.S. economy have been affected equally by international trade. C Exports and imports have steadily declined as a fraction of U.S. GDP. D. None of the above.

B. While exports and imports have been steadily rising as a fraction of​ GDP, not all sectors of the U.S. economy have been affected equally by international trade.

The government of a country faced substantial pressure from different sectors to reduce tariffs. Many​ groups, including the​ media, were lobbying for an overall reduction in import tariffs imposed by the government. According to​ them, the country would gain if free trade were encouraged. While certain sectors reported increased exports after a reduction in trade​ restrictions, many firms went out of business in other sectors as imports increased. People who lost their jobs complained that the reduction in tariffs had done the nation more harm than good. Which of the​ following, if​ true, would weaken the claim of the people who lost their​ jobs? A. The demand for the​ country's goods is higher outside the country than inside the country. B. The World Trade Organization is encouraging free trade between nations. C. The contribution of imports to this​ country's GDP has always been much higher than its exports. D. The increase in GDP after the reduction in trade barriers was very low. E. The global economy is recovering from a recession.

C. The contribution of imports to this​ country's GDP has always been much higher than its exports.

In the​ U.S., gross domestic product ​(GDP LOADING... ​) and gross national product ​(GNP LOADING... ​) are close in value. Under what circumstances would GNP be much larger than​ GDP? A. Many U.S. citizens currently work in foreign countries while few foreign citizens currently work in the U.S. B. Few foreign firms maintain facilities in the U.S. while many U.S. firms are currently operating abroad. C. Few foreign citizens currently work in the U.S. and few foreign firms maintain facilities in the U.S. D. All of the above would push GNP above GDP.

D. All of the above would push GNP above GDP

The term external economies refers to A. the reduction of production costs due to increased capacity utilization B. the benefits a firms receives from firms in other industries being located nearby C. the process of turning inputs into goods and services D. the reduction of costs resulting from increases in the size of an industry in a given area

D. the reduction of costs resulting from increases in the size of a given area

Briefly explain if you agree with the following: "Japan has always been heavily involved with international trade than are most other nations. In fact today Japan exports a larger fraction of its GDP than do Germany, GB, or the US"

Disagree. Japan exports about 20% of its GDP, only the US exports a smaller percentage than those mentioned

Alzuria and Narnia are two open economies that produce goods A and B. The productivity of workers in industry B in Narnia is higher than the productivity of the Alzurian workers producing B. This led industry experts to claim that Narnia should specialize in the production of B and export it to Alzuria in exchange for good A. Which of the​ following, if​ true, would weaken this​ argument? A. The production of B in Alzuria involves increasing opportunity cost. B. People in Alzuria are not very loyal to their national brands. C. The government of Narnia does not provide any subsidies to any of its industries. D. The opportunity cost of producing good B in Narnia is much lower than the opportunity cost of producing the same good in Alzuria. E. The variety of B produced in Alzuria is more suited to the preferences of the local people than good B produced in Narnia.

E. The variety of B produced in Alzuria is more suited to the preferences of the local people than good B produced in Narnia. If​ true, this would imply that the people of Alzuria will most likely prefer to consume the home brand of good B rather than the one imported from Narnia. This therefore would weaken the argument that Narnia should export B to Alzuria.