A government supporting the difference between global export market prices and higher domestic prices is known as: A. Trade Deficit B. Trade Surplus C. Import Tariff D. Import Quota E. Embargo F. Export Subsidy

A government supporting the difference between global export market prices and higher domestic prices is known as: A. Trade Deficit B. Trade Surplus C. Import Tariff D. Import Quota E. Embargo F. Export Subsidy

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter28: International Trade And Finance

Section: Chapter Questions

Problem 7SQ

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Question

A government supporting the difference between global export market prices and higher domestic prices is known as:

A. Trade Deficit

B. Trade Surplus

C. Import Tariff

D. Import Quota

E. Embargo

F. Export Subsidy

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An outright ban on the export of a commodity to a particular country is known as: A. Trade Deficit B. Trade Surplus C. Import Tariff D. Import Quota E. Embargo F. Export Subsidy
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If the total of a nation's imports are subtracted from the total of a nations exports, the result is: a Price Level One component of National Income GDP The rate of inflation none of these
A country has a trade surplus when Group of answer choices its exports exceed its imports. its government spending exceeds its tax revenues. its exports equal its imports. its exports are less than its imports.
Consider a small country that exports steel. Suppose that a “pro-trade” government decides to subsidize the export of steel by paying a certain amount for each ton sold abroad. How does this export subsidy affect the domestic price of steel, the quantity of steel consumed, and the quantity of steel exported? How does it affect consumer surplus, producer surplus and government revenue? (Hint: The analysis of an export subsidy is like the analysis of a tariff.)
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Consider a small country that exports steel. Suppose that a “pro-trade” government decides to subsidize the export of steel by paying a certain amount for each ton sold abroad. How does this export subsidy (similar to a tariff) affect the domestic price of steel, the quantity of steel produced, the quantity of steel consumed, and the quantity of steel exported? How does it affect consumer surplus, producer surplus, and government revenue? Is it is a good policy from the standpoint of economic efficiency?
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Tariffs and quotas are costly to consumers because the price of the imported good falls the supply of the imported good increases import competition increases for domestic goods consumers shift purchases to higher-priced domestic goods Tariffs and import quotas would benefit the following groups, except consumers of the product domestic producers of the product workers in domestic firms producing the product the government of the importing country