Chapter 15 - Homework 9

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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


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