Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 9, Problem 1IAPA
To determine
The gain and loss in the United States from dismantling trade barriers.
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Economics
A trade expert compares the modern tariffs to the
Depression-era Smoot-Hawley tariffs. He says
“The economic impact is going to take years to
play out." What was the effect of the Smoot-
Hawley tariffs on U.S. trade?
a) Both imports and exports rose by nearly about the same amount, the trade
balance remained about the same, and the total volume of trade increased.
b) Both imports and exports fell by nearly about the same amount, the trade
balance remained about the same, and the total volume of trade decreased.
c) Imports decreased, and the trade balance increased. The total volume of
trade was nearly unchanged.
d) Imports decreased, and the trade balance was nearly unchanged. The total
volume of trade decreased.
Sujee
International Trade - End of Chapter Problem
The United States is the fifth largest sugar consumer and the fifth largest sugar producer in the world. The U.S. sugar industry
has enjoyed trade protection since 1789 when Congress enacted the first tariff against foreign-produced sugar.
The accompanying graph depicts the supply and demand for sugar in the United States in 2019. The world price for sugar was
$0.12 per pound.
a. The United States enacts an import tariff of 6 cents per pound. In the accompanying graph, place the line labeled "World price
+ tarill" in the graph to reflect this tariff.
Price (cesta per pound)
52
54
48
24
18
D
0
B
Market for sugar
Domestic supply
19
24
Quantity (billions of pounds)
CS
d. Given the tarill, quantity demanded will be
pounds. U.S. imports will therefore be
PS
e. As a result of the tariff, consumer surplus will
economic surplus will
GR
World Price + tarif
b. Next, using the shapes in the graph, shade the areas that represent consumer surplus…
Tariffs can help or hurt the economy explain the Hawley-Smoot Act with this in mind.
Chapter 9 Solutions
Foundations of Economics (8th Edition)
Ch. 9 - Prob. 1SPPACh. 9 - Prob. 2SPPACh. 9 - Prob. 3SPPACh. 9 - Prob. 4SPPACh. 9 - Prob. 5SPPACh. 9 - Prob. 6SPPACh. 9 - Prob. 7SPPACh. 9 - Prob. 8SPPACh. 9 - Prob. 9SPPACh. 9 - Prob. 10SPPA
Ch. 9 - Prob. 11SPPACh. 9 - Prob. 1IAPACh. 9 - Prob. 2IAPACh. 9 - Prob. 3IAPACh. 9 - Prob. 4IAPACh. 9 - Prob. 5IAPACh. 9 - Prob. 6IAPACh. 9 - Prob. 7IAPACh. 9 - Prob. 8IAPACh. 9 - Prob. 9IAPACh. 9 - Prob. 1MCQCh. 9 - Prob. 2MCQCh. 9 - Prob. 3MCQCh. 9 - Prob. 4MCQCh. 9 - Prob. 5MCQCh. 9 - Prob. 6MCQCh. 9 - Prob. 7MCQ
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