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68.
Refer to the diagram, which pertains to two nations and a specific product. The equilibrium
world price occurs at
40-42
69.
Refer to the diagram, which pertains to two nations and a specific product. The equilibrium
level of exports and imports occurs at
70.
Domestic Market For Steel, Alpha
Qs
P
Qd
60
$5
10
40
4
20
30
3
30
20
2
40
40-43
10
1
50
Domestic Market For Steel,
Beta
Qs
P
Qd
80
$5
20
70
4
30
60
3
40
50
2
50
40
1
60
The accompanying tables show data for the hypothetical nations of Alpha and Beta. Qs is
domestic quantity supplied, and Qd is domestic quantity demanded. The domestic
equilibrium prices of steel in Alpha and Beta are
71.
Domestic Market For Steel, Alpha
Qs
P
Qd
60
$5
10
40
4
20
30
3
30
20
2
40
10
1
50
Domestic Market For Steel,
40-44
Beta
Qs
P
Qd
80
$5
20
70
4
30
60
3
40
50
2
50
40
1
60
The accompanying tables show data for the hypothetical nations of Alpha and Beta. Qs is
domestic quantity supplied, and Qd is domestic quantity demanded. At a world price of $5,
72.
Domestic Market For Steel, Alpha
Qs
P
Qd
60
$5
10
40
4
20
30
3
30
20
2
40
10
1
50
Domestic Market For Steel,
Beta
Qs
P
Qd
80
$5
20
70
4
30
60
3
40
40-45
50
2
50
40
1
60
The accompanying tables show data for the hypothetical nations of Alpha and Beta. Qs is
domestic quantity supplied, and Qd is domestic quantity demanded. At a world price of $2,
73.
Domestic Market For Steel, Alpha
Qs
P
Qd
60
$5
10
40
4
20
30
3
30
20
2
40
10
1
50
Domestic Market For Steel,
Beta
Qs
P
Qd
80
$5
20
70
4
30
60
3
40
50
2
50
40
1
60
The accompanying tables show data for the hypothetical nations of Alpha and Beta. Qs is
domestic quantity supplied, and Qd is domestic quantity demanded. Alpha's export supply
is represented by
40-47
74.
Domestic Market For Steel, Alpha
Qs
P
Qd
60
$5
10
40
4
20
30
3
30
20
2
40
10
1
50
Domestic Market For Steel,
Beta
Qs
P
Qd
80
$5
20
70
4
30
60
3
40
50
2
50
40
1
60
The accompanying tables show data for the hypothetical nations of Alpha and Beta. Qs is
domestic quantity supplied, and Qd is domestic quantity demanded. Assuming that Alpha
and Beta are the only two nations in the world, the equilibrium world price must be lower
than $4 because, at $4,
75.
40-48
Domestic Market For Steel, Alpha
Qs
P
Qd
60
$5
10
40
4
20
30
3
30
20
2
40
10
1
50
Domestic Market For Steel,
Beta
Qs
P
Qd
80
$5
20
70
4
30
60
3
40
50
2
50
40
1
60
The accompanying tables show data for the hypothetical nations of Alpha and Beta. Qs is
domestic quantity supplied, and Qd is domestic quantity demanded. Assuming that Alpha
and Beta are the only two nations in the world, the equilibrium world price must be
higher than $1 because, at $1,
76.
Domestic Market For Steel, Alpha
Qs
P
Qd
60
$5
10
40-49
40
4
20
30
3
30
20
2
40
10
1
50
Domestic Market For Steel,
Beta
Qs
P
Qd
80
$5
20
70
4
30
60
3
40
50
2
50
40
1
60
The accompanying tables show data for the hypothetical nations of Alpha and Beta. Qs is
domestic quantity supplied, and Qd is domestic quantity demanded. Assuming that Alpha
and Beta are the only two nations in the world, the equilibrium world price of steel must
be between
77.
Domestic Market For Steel, Alpha
Qs
P
Qd
60
$5
10
40
4
20
30
3
30
20
2
40
10
1
50
Domestic Market For Steel,
Beta
Qs
P
Qd
80
$5
20
70
4
30
60
3
40
50
2
50
40
1
60
The accompanying tables show data for the hypothetical nations of Alpha and Beta. Qs is
domestic quantity supplied, and Qd is domestic quantity demanded. Assuming that Alpha
and Beta are the only two nations in the world, at the equilibrium world price,
78. Tariffs
40-51
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Learning Objective: 40-04 Analyze the economic effects of tariffs and quotas.
Test Bank: I
Topi c:
Trade Barriers and Export Subsidies
79. An excise tax on an imported good that is not produced domestically is called a
80. Excise taxes on imported goods that help shield domestic producers of the good are
called
81. Country A limits other nation's exports to Country A to 1,000 tons of coal annually.
This is an example of a(n)
40-52
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
A c c e s s i b i l i t y :
Keyboard Navigation
Blooms: Analyze
Diff i c u lty: 03 Hard
Learning Objective: 40-04 Analyze the economic effects of tariffs and quotas.
Test Bank: I
Topi c:
Trade Barriers and Export Subsidies
82. Which is an example of a nontariff barrier (NTB)?
83. A tariff can best be described as
84. In the past, Canada has agreed to set an upper limit on the total amount of softwood
lumber sold to the United States. This is an example of a(n)
40-53
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
D. protective tariff.
85. Suppose the United States sets a limit on the number of tons of sugar that can be
imported each year. This is an example of a(n)
86.
Refer to the given diagram, where Sd and Dd are the domestic supply and demand for a
product and Pc is the world price of that product. If this economy were entirely closed to
international trade, equilibrium price and quantity would be
87.
Refer to the diagram, where Sd and Dd are the domestic supply and demand for a product
and Pc is the world price of that product. If the economy is opened to free trade, the price
and quantity sold of this product would be
40-55
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Blooms: Analyze
Di f f i cul t y:
03 Hard
Learning Objective: 40-04 Analyze the economic effects of tariffs and quotas.
Test Bank: I
T o pi c : Trade Barriers and Export Subsidies
Type: Graph
88.
Refer to the diagram, where Sd and Dd are the domestic supply and demand for a product
and Pc is the world price of that product. With free trade, that is, assuming no tariff, the
outputs produced by domestic and foreign producers, respectively, would be
89.
Refer to the diagram, where Sd and Dd are the domestic supply and demand for a product
and Pc is the world price of that product. With a per-unit tariff in the amount PcPt, price
and total quantity sold will be
90.
Refer to the diagram, where Sd and Dd are the domestic supply and demand for a product
and Pc is the world price of that product. With a PcPt per-unit tariff, the quantities sold by
foreign and domestic producers, respectively, will be
91.
Refer to the diagram, where Sd and Dd are the domestic supply and demand for a product
and Pc is the world price of that product. With a PcPt per-unit tariff, per-unit revenue
received by domestic and foreign producers, respectively, will be
92.
Refer to the diagram, where Sd and Dd are the domestic supply and demand for a product
and Pc is the world price of that product. With a per-unit tariff of PcPt, the total amount of
tariff revenue collected on this product will be
93. Suppose the United States eliminates high tariffs on German bicycles. As a result, we
would expect
40-60
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
A c c e s s i b i l i t y :
Keyboard Navigation
Blooms: Analyze
Diff i c u lty: 03 Hard
Learning Objective: 40-04 Analyze the economic effects of tariffs and quotas.
Test Bank: I
T o pi c : Trade Barriers and Export Subsidies
94. In effect, tariffs on imports are
95. The accompanying table gives domestic supply and demand schedules for a product.
Suppose that the world price of the product is $1.
Quantity
Supplied
(Domestic)
Price
Quantity
Demanded
(Domestic)
12
$5
2
10
4
4
7
3
7
4
2
11
1
1
16
If this nation were entirely closed to international trade, equilibrium price and quantity
would be
