Price Sus 23,000 22.000 21:000 20.000 19,000 Dus 123456789 QuTos Refer to the above diagram, where SUS and DUS are the Unites States' supply and demand curves for autos and the world price is $20,000 per auto. The quantities of autos are in millions. With an import tariff of $1,000 per auto, the quantities sold by American and foreign producers, respectively, will be O 7 million autos and 3 million autos O 7 million autos and 4 million autos O 3 million autos and 7 million autos O 3 million autos and 4 million autos %24

Price Sus 23,000 22.000 21:000 20.000 19,000 Dus 123456789 QuTos Refer to the above diagram, where SUS and DUS are the Unites States' supply and demand curves for autos and the world price is $20,000 per auto. The quantities of autos are in millions. With an import tariff of $1,000 per auto, the quantities sold by American and foreign producers, respectively, will be O 7 million autos and 3 million autos O 7 million autos and 4 million autos O 3 million autos and 7 million autos O 3 million autos and 4 million autos %24

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following arguments might be legitimate reasons for limiting imports? a) Imports destroy jobs in the import-copeting industry so we should protect this industry to save jobs. b) We need to impose tariffs fo stop our industries moving their operations and jobs to lob wage countries c) if the cost of shifting resources from import-competing industries are high enough so that together with the other transaction costs they exceed the gains from trade, we should slow down the imports. d) Low income countries' ability to buy our goods is so much less that our ability to buy theirs, that in order to have balanced trade, we should impose some restrictions of imports from such low income countries. e) Some countries f) Some foreign producers sell below their costs in order to monopolize the market so they can raise prices to monopoly levels and fleece our cosumers, so we should impose restrictions specific to such…
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Which of the following is a disadvantage of the General Agreement on Tariffs and Trade's (GATT's) policies? It abolished the Multifiber Arrangement (MFA) designed to promote free trade in textiles. O It increased the average trade tariffs among developed countries. O Non-tariff barriers that were easy to verify and challenge were removed. Trade in services and intellectual poperty (IP) protection was not covered.
Consider the market for coffee in the small, isolated country of Krakozhia. Within Krakozhia, the domestic demand for coffee is: Q = 500-2p and the domestic supply of coffee is: Q* = -150+ 3p
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This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good. 215 175 130 100 M A B D H 250 $19,500. O $27,000. $37,500. C O $34,500. 500 F G J 815 K S World Price + tariff World Price 1150 1500 According to the graph shown, if the economy decides to impose a tariff, the government can expect to raise how much in government revenues? D Q
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