Given the following information pertaining to large country A with respect to good X Under free trade and with a tariff in place: $\begin{array} { l r } \text { domestic price of X under free trade } & \$ 100 \\ \text { world price of X under free trade } & \$ 100 \\ \text { domestic price of X with tariff in place } & \$ 103 \\ \text { world price of X with tariff in place } & \$ 98 \\ \text { domestic production of X under free trade } & 40 \text { units } \\ \text { domestic production of X with tariff in place } & 50 \text { units } \\ \text { consumption of X under free trade } & 100 \text { units } \\ \text { consumption of X with tariff in place } & 80 \text { units } \end{array}$ What is the impact of the tariff upon country A's welfare?

A) loss of $15. B) loss of $45. C) gain of $15. D) gain of $60 A) loss of $15. B) loss of $45. C) gain of $15. D) gain of $60

Given the following information for (small) country A concerning a good X: $\begin{array} { l r } \text { free trade price in A } & \$ 20 \text { per unit } \\ \text { tariff rate } & 20 \text { percent } \\ \text { price in A, with tariff } & \$ 24 \text { per unit } \\ \text { consumption in A, free trade } & 1,000 \text { units } \\ \text { consumption in A, with tariff } & 900 \text { units } \\ \text { production in A, free trade } & 600 \text { units } \\ \text { production in A, with tariff } & 800 \text { units } \end{array}$

A) The government revenue generated by the tariff is $800. B) The decrease in consumer surplus because of the tariff is $4,000. C) The increase in producer surplus because of the tariff is $3,200. D) The net welfare loss for A from the tariff is $600. A) The government revenue generated by the tariff is $800. B) The decrease in consumer surplus because of the tariff is $4,000. C) The increase in producer surplus because of the tariff is $3,200. D) The net welfare loss for A from the tariff is $600.

Given the following information pertaining to large country A with respect to good X Under free trade and with a tariff in place: $\begin{array} { l r } \text { domestic price of X under free trade } & \$ 100 \\ \text { world price of X under free trade } & \$ 100 \\ \text { domestic price of X with tariff in place } & \$ 103 \\ \text { world price of X with tariff in place } & \$ 98 \\ \text { domestic production of X under free trade } & 40 \text { units } \\ \text { domestic production of X with tariff in place } & 50 \text { units } \\ \text { consumption of X under free trade } & 100 \text { units } \\ \text { consumption of X with tariff in place } & 80 \text { units } \end{array}$ What is the loss of consumer surplus in country A that occurs because of the imposition of the tariff?

A) $45 B) $150 C) $270 D) . $300 A) $45 B) $150 C) $270 D) . $300

Exam 14: The Impact of Trade Policies

Given the following information pertaining to large country A with respect to good X Under free trade and with a tariff in place: domestic price of X under free trade \ 100 world price of X under free trade \ 100 domestic price of X with tariff in place \ 103 world price of X with tariff in place \ 98 domestic production of X under free trade 40 units domestic production of X with tariff in place 50 units consumption of X under free trade 100 units consumption of X with tariff in place 80 units What is the impact of the tariff upon country A's welfare?

(Multiple Choice)

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Question 21

If a (large) country B puts an export tax on a good, and assuming that world demand for The export from B is not perfectly inelastic, then, because of the tax, the price of the good In country B will and the price of the good on the world market .

(Multiple Choice)

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Question 22

The imposition of an export tax by a home country will lead to in home Country consumer surplus and will in home country producer surplus.

(Multiple Choice)

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Question 23

In the large-country case, an export tax

(Multiple Choice)

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Question 24

The diagram below shows the situation of a small country with free-trade in an imported product (at a price of $10) and the situation with a tariff on the product (at a price of $11). In this graph, the net welfare loss (or total deadweight loss) to the country from the imposition of the tariff is __________.

(Multiple Choice)

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Question 25

If a small country produces 100 units of product X and consumes 140 units at a price of $2 under free trade, but the imposition of a tariff leads to a situation where domestic price is $2.20, domestic production is 120 units, and domestic consumption is 125 units, then the gain in producer surplus in this country because of the tariff is __________.

(Multiple Choice)

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Question 26

Discuss why an exporting country II, if faced with a choice between a 100-unit import quota by importing country I on a given product or a "voluntary" export restriction by II of 100 units of the product, would choose the VER. Might there be a larger import quota (for example, 120 units) that would be preferred by II to a 100-unit VER? In general terms, what considerations would be involved in this latter choice?

(Essay)

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Question 27

In the case of nonhomogeneous goods, the imposition of an import tariff

(Multiple Choice)

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Question 28

Given the following information for (small) country A concerning a good X: free trade price in A \ 20 per unit tariff rate 20 percent price in A, with tariff \ 24 per unit consumption in A, free trade 1,000 units consumption in A, with tariff 900 units production in A, free trade 600 units production in A, with tariff 800 units

(Multiple Choice)

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Question 29

Other things equal, a larger share of a tariff is more likely to be "paid" by the foreign exporting country B rather than the domestic importing country A if

(Multiple Choice)

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Question 30

In the following offer curve diagram, OC_A is the free-trade offer curve of country A, OC_B is the free-trade offer curve of country B, and OC'_A (which starts at the origin O, goes to point M and then comes back horizontally to point Y') is the offer curve of country A when it has a restrictive trade policy instrument in place (while country B continues with free trade). In this situation, the restrictive instrument that country A has employed is , and the resulting equilibrium position E' is equilibrium position.

(Multiple Choice)

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Question 31

In the following import graph, if horizontal supply line S_m shifts to horizontal line S'_m because of the imposition of a tariff,

(Multiple Choice)

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Question 32

How would an export quota by a home country look in the offer curve diagram? How would a subsequent increase in foreign demand for the export affect the exporting country's terms of trade and quantity of exports?

(Essay)

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Question 33

Given the following information pertaining to large country A with respect to good X Under free trade and with a tariff in place: domestic price of X under free trade \ 100 world price of X under free trade \ 100 domestic price of X with tariff in place \ 103 world price of X with tariff in place \ 98 domestic production of X under free trade 40 units domestic production of X with tariff in place 50 units consumption of X under free trade 100 units consumption of X with tariff in place 80 units What is the loss of consumer surplus in country A that occurs because of the imposition of the tariff?

(Multiple Choice)

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Question 34

Given the information on prices, production, and consumption in Question #15 above, and assuming that demand and supply curves are straight lines, what is the gain in producer surplus in country B that occurs because of the imposition of the tariff?

(Multiple Choice)

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Question 35

In Question #26 above, country A

(Multiple Choice)

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Question 36

Showing 21 - 36 of 36

If a (large) country B puts an export tax on a good, and assuming that world demand for The export from B is not perfectly inelastic, then, because of the tax, the price of the good In country B will and the price of the good on the world market .

The imposition of an export tax by a home country will lead to in home Country consumer surplus and will in home country producer surplus.

In the large-country case, an export tax

In the case of nonhomogeneous goods, the imposition of an import tariff

Other things equal, a larger share of a tariff is more likely to be "paid" by the foreign exporting country B rather than the domestic importing country A if

In the following import graph, if horizontal supply line S_m shifts to horizontal line S'_m because of the imposition of a tariff,

How would an export quota by a home country look in the offer curve diagram? How would a subsequent increase in foreign demand for the export affect the exporting country's terms of trade and quantity of exports?

Given the information on prices, production, and consumption in Question #15 above, and assuming that demand and supply curves are straight lines, what is the gain in producer surplus in country B that occurs because of the imposition of the tariff?

In Question #26 above, country A

Early Trade Theories: Mercantilism and the Transition to the Classical World of David Ricardo

The Classical World of David Ricardo and Comparative Advantage

Extensions and Tests of the Classical Model of Trade

Introduction to Neoclassical Trade Theory: Tools to Be Employed

Gains From Trade in Neoclassical Theory

Offer Curves and the Terms of Trade

The Basis for Trade: Factor Endowments and the Heckscher-Ohlin Model

Empirical Tests of the Factor Endowments Approach

Post Heckscher-Ohlin Theories of Trade and Intra-Industry Trade

Economic Growth and International Trade

International Factor Movements

The Instruments of Trade Policy

Arguments for Interventionist Trade Policies

Political Economy and Us Trade Policy

Economic Integration

International Trade and the Developing Countries

The Balance-Of-Payments Accounts

The Foreign Exchange Market

International Financial Markets and Instruments: an Introduction

The Monetary and Portfolio Balance Approaches to External Balance

Price Adjustments and Balance-Of-Payments Disequilibrium

National Income and the Current Account

Economic Policy in the Open Economy Under Fixed Exchange Rates

Economic Policy in the Open Economy Under Flexible Exchange Rates

Prices and Output in the Open Economy: Aggregate Supply and Demand

Fixed or Flexible Exchange Rates

The International Monetary System: Past, Present, and Future

Filters

Exam 14: The Impact of Trade Policies

If a (large) country B puts an export tax on a good, and assuming that world demand for The export from B is not perfectly inelastic, then, because of the tax, the price of the good In country B will __________ and the price of the good on the world market __________.

The imposition of an export tax by a home country will lead to __________ in home Country consumer surplus and will __________ in home country producer surplus.

In the large-country case, an export tax

In the case of nonhomogeneous goods, the imposition of an import tariff

Other things equal, a larger share of a tariff is more likely to be "paid" by the foreign exporting country B rather than the domestic importing country A if

In the following import graph, if horizontal supply line Sm shifts to horizontal line S'm because of the imposition of a tariff,

How would an export quota by a home country look in the offer curve diagram? How would a subsequent increase in foreign demand for the export affect the exporting country's terms of trade and quantity of exports?

Given the information on prices, production, and consumption in Question #15 above, and assuming that demand and supply curves are straight lines, what is the gain in producer surplus in country B that occurs because of the imposition of the tariff?

In Question #26 above, country A

Early Trade Theories: Mercantilism and the Transition to the Classical World of David Ricardo

The Classical World of David Ricardo and Comparative Advantage

Extensions and Tests of the Classical Model of Trade

Introduction to Neoclassical Trade Theory: Tools to Be Employed

Gains From Trade in Neoclassical Theory

Offer Curves and the Terms of Trade

The Basis for Trade: Factor Endowments and the Heckscher-Ohlin Model

Empirical Tests of the Factor Endowments Approach

Post Heckscher-Ohlin Theories of Trade and Intra-Industry Trade

Economic Growth and International Trade

International Factor Movements

The Instruments of Trade Policy

Arguments for Interventionist Trade Policies

Political Economy and Us Trade Policy

Economic Integration

International Trade and the Developing Countries

The Balance-Of-Payments Accounts

The Foreign Exchange Market

International Financial Markets and Instruments: an Introduction

The Monetary and Portfolio Balance Approaches to External Balance

Price Adjustments and Balance-Of-Payments Disequilibrium

National Income and the Current Account

Economic Policy in the Open Economy Under Fixed Exchange Rates

Economic Policy in the Open Economy Under Flexible Exchange Rates

Prices and Output in the Open Economy: Aggregate Supply and Demand

Fixed or Flexible Exchange Rates

The International Monetary System: Past, Present, and Future

Filters

If a (large) country B puts an export tax on a good, and assuming that world demand for The export from B is not perfectly inelastic, then, because of the tax, the price of the good In country B will and the price of the good on the world market .

The imposition of an export tax by a home country will lead to in home Country consumer surplus and will in home country producer surplus.

In the following import graph, if horizontal supply line S_m shifts to horizontal line S'_m because of the imposition of a tariff,