MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
11th Edition
ISBN: 9781264207718
Author: Colander
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 10, Problem 7IP
(a)
To determine
Reason for the opposition of the Smoot-Hawley tariff.
(b)
To determine
Effect of the Smoot-Hawley tariff.
(c)
To determine
Impact of not instituting a retaliatory tariff.
(d)
To determine
Effect of tariff on the macro economy.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Potato SA's head of marketing Willie Jacobs has explained that the practice of potato dumping holds some harmful consequences. These include further economic decline and hitting where it hurts most, the livelihoods of South African farmers and workers and their families. He added that irregular imports are detrimental to a viable local economy; hence the implementation of consistent anti-dumping measures is essential." If demand theory is used to explain why South African farmers feel their businesses are under threat, it is because they believe that... A. They would have to sell their produce at a low price resulting in losses. B. They are expecting prices to rise in the future. C. There is not enough demand for potatoes in the market. D. The dumped potatoes shift the supply curve outwards resulting in price that is too high for consumers to afford.
Question 2
Give two reasons and briefly explain why a tariff could be selected as an economic policy?
In the picture below is the full question. The highlighted one is my guess which is wrong.
Which of the following best explains how subsidies work as a trade restriction?
A)They increase competition for a new business, forcing it to be more productive, and lowering prices for consumers.
B)They limit the import of foreign goods and create shortages.
C)They place a tax on foreign goods, making foreign good expensive, increasing demand for domestic goods(this one is wrong)
D)Governments pay producers, offsetting costs, increasing supply, lowering prices, and reducing foreign competition.
Chapter 10 Solutions
MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
Ch. 10.1 - Prob. 1QCh. 10.1 - Prob. 2QCh. 10.1 - Prob. 3QCh. 10.1 - Prob. 4QCh. 10.1 - Prob. 5QCh. 10.1 - Prob. 6QCh. 10.1 - Prob. 7QCh. 10.1 - Prob. 8QCh. 10.1 - Prob. 9QCh. 10.1 - Prob. 10Q
Ch. 10 - Prob. 1QECh. 10 - Prob. 2QECh. 10 - Prob. 3QECh. 10 - Prob. 4QECh. 10 - Prob. 5QECh. 10 - Prob. 6QECh. 10 - Prob. 7QECh. 10 - Prob. 8QECh. 10 - Prob. 9QECh. 10 - Prob. 10QECh. 10 - Prob. 11QECh. 10 - Prob. 12QECh. 10 - Prob. 13QECh. 10 - Prob. 1QAPCh. 10 - Prob. 2QAPCh. 10 - Prob. 3QAPCh. 10 - Prob. 4QAPCh. 10 - Prob. 5QAPCh. 10 - Prob. 1IPCh. 10 - Prob. 2IPCh. 10 - Prob. 3IPCh. 10 - Prob. 4IPCh. 10 - Prob. 5IPCh. 10 - Prob. 6IPCh. 10 - Prob. 7IPCh. 10 - Prob. 8IP
Knowledge Booster
Similar questions
- 1) https://openstax.org/books/principles-macroeconomics-2e/pages/21-1-protectionism-an-indirect-subsidy-from-consumers-to-producers 2) https://openstax.org/books/principles-macroeconomics-2e/pages/21-2-international-trade-and-its-effects-on-jobs-wages-and-working-conditions 3) https://openstax.org/books/principles-macroeconomics-2e/pages/21-3-arguments-in-support-of-restricting-imports 4) https://openstax.org/books/principles-macroeconomics-2e/pages/21-4-how-governments-enact-trade-policy-globally-regionally-and-nationally 5) https://openstax.org/books/principles-macroeconomics-2e/pages/21-5-the-tradeoffs-of-trade-policy I need a short summary for these articles, please.arrow_forwardI asked this question in an earlier assignment; It was a bonus question about price floors and tariffs. I’m curious if your answers have changed. Would tariffs on imported wine be a price floor?arrow_forwardConsider the market for sugar in the United States depicted in the figure to the right. Assume the world price of sugar is $0.04 per pound, and at that price the United States can buy as much sugar as it wants without causing the world price to rise. Now suppose a tariff imposed by the government completely eliminates trade. As a result of the tariff, consumers will be surplus, and producers will be off in terms of consumer off in terms of producer surplus. Use the traingle drawing tool to indicate the total loss of surplus for the United States as a result of the tariff by shading in domestic dead weight loss. Property label this shaded area. Carefully follow the instructions above, and only draw the required objects. Price of sugar (per pound) 0.36 0.32- 0.28- 0.24- 0.20 0.16 0.12- 0.08 0.04+ 0.00+ 0 Supply World Price Demand 4 12 16 20 24 28 32 36 40 Quantity of sugar (billion pounds per year) Oduarrow_forward
- Having rejected a tariff on textiles (a tax on imports), the president of Isoland is now considering the same-sized tax on textile consumption (including both imported and domestically produced textiles). Under a textile consumption tax, the quantity of textiles consumed in Isoland will be (SAME AS, HIGHER , LOWER) the quantity consumed under a tariff, and the quantity produced in Isoland will be (SAME AS, HIGHER , LOWER) the quantity produced under a tariff. The following table shows the effect of an import tariff on the nation of Isoland. Compared to the consumption tax, the tariff raises (LESS, MORE , SAME AMOUNT) revenue for the government and has (SMALLER, LARGER, EQUAL SIZE) deadweight loss associated with it.arrow_forwardFor many purposes, the use of a tariff is said by economists to be “second best.” This means that Group of answer choices Another policy exists that would accomplish the same purpose as the tariff at lower economic cost. The tariff does not help those with the highest incomes, but only those with the second highest. The tariff benefits the country only by making other countries worse off. The tariff cannot be beneficial for the country as a whole.arrow_forwardDescribe what a tariff is and its economic effectsarrow_forward
- Ab 46 Economicsarrow_forwardWhat are three errors that Ricardo made in his own work on trade theory?arrow_forwardTRUE OR FALSE? EXPLAIN. To protect an industry, it is best when the Effective Rate of Protection is higher than the Normal Rate of Protection. For a Tariff-Rate Quota, the government imposes an import tariff and an import quota. The formation of Free Trade Areas and Custom Unions leads to free trade between all countries. Immiserizing growth takes place when there is an increase in growth and trade of a country. In the U.S, countervailing duties are levied on imported goods if they receive an export subsidy from the foreign government.arrow_forward
- Suppose Russia can produce automobiles relatively cheaply, but they have poor gas mileage and create a great deal of air pollution. The U.S. government, concerned about the quality of air, would like to see fewer Russian automobiles and more cleaner-running American automobiles on the road. What is the nature of the market failure that would justify the U.S. government taking some action against the importation of Russian automobiles? Explain why imposing a tariff is a second-best policy to employ in this case and what policy choice would be more efficient if: i) US carries out its own solution; ii) the two countries governments cooperate.arrow_forwardThe analysis of a quota implies that .... please select one or more : a) The effect of a quota on trade is the same as a tariff. b) A quota will cause the same deadweight losses as a tariff. c) States should prefer quota instead of tariff. d) A quota increases imports if it is associated with high price elasticity of demand. e) When a quota is applied, the consumer surplus decreases but the producer surplus does not increase because only the state benefits from the quota.arrow_forwardThe following graph shows a fictional world economy that consists of only two countries, Greenberg and Baxton. Both countries produce airplanes under increasing-cost conditions. Note that the left-hand part of the diagram is a mirror image of a standard supply-demand diagram, and therefore the supply and demand curves slope in directions opposite their usual directions. Greenberg Baxton 30 27 24 +18 + + 15 12 In the absence of trade (that is, autarky), the equilibrium price in Greenberg is $ and the equilibrium price in Baxton is |. (Hint: Enter all monetary values in full. For example, $7,000 rather than $7.) In the absence of trade, which of the following statements is correct? O Greenberg has the comparative advantage in production of airplanes. O Greenberg and Baxton are equally good at producing airplanes. O Baxton has the comparative advantage in production of airplanes. Now suppose both countries open up to international trade with each other. For each country, use the previous…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning