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40-141
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
C.
higher in price because import competition has declined.
D. lower in price because import competition has declined.
267.
Quantity
Demanded
Domestically
Price
Quantity
Supplied
Domestically
1,400
$10
2,200
1,600
9
2,000
1,800
8
1,800
2,000
7
1,600
2,200
6
1,400
2,400
5
1,200
Refer to the accompanying table for a certain product's market in Econland. If Econland
were entirely closed to international trade, the equilibrium price and quantity would be
268.
Quantity
Demanded
Price
Quantity
Supplied
Domestically
Domestically
1,400
$10
2,200
1,600
9
2,000
1,800
8
1,800
2,000
7
1,600
2,200
6
1,400
2,400
5
1,200
Refer to the accompanying table for a certain product's market in Econland. If the world
price for this product were $6, then Econland would import
269.
Quantity
Demanded
Domestically
Price
Quantity
Supplied
Domestically
1,400
$10
2,200
1,600
9
2,000
1,800
8
1,800
2,000
7
1,600
2,200
6
1,400
2,400
5
1,200
Refer to the accompanying table for a certain product's market in Econland. If the world
price of the product were $6 and a tariff of $1 per unit imported is imposed, then the
quantity of output that would be supplied domestically would be
40-143
270.
Quantity
Demanded
Domestically
Price
Quantity
Supplied
Domestically
1,400
$10
2,200
1,600
9
2,000
1,800
8
1,800
2,000
7
1,600
2,200
6
1,400
2,400
5
1,200
Refer to the accompanying table for a certain product's market in Econland. If the world
price of the product were $6 and a tariff of $1 per unit were applied to imports of the
product, then the tariff would generate government revenues of
271.
Quantity
Demanded
Domestically
Price
Quantity
Supplied
Domestically
1,400
$10
2,200
1,600
9
2,000
1,800
8
1,800
2,000
7
1,600
2,200
6
1,400
2,400
5
1,200
Refer to the accompanying table for a certain product's market in Econland. If the world
price of the product were $6 and a tariff of $1 per unit were applied to imports of the
product, then the total revenue (after tariff) going to domestic producers would be
272.
Quantity
Demanded
Domestically
Price
Quantity
Supplied
Domestically
1,400
$10
2,200
1,600
9
2,000
1,800
8
1,800
2,000
7
1,600
2,200
6
1,400
2,400
5
1,200
Refer to the accompanying table for a certain product's market in Econland. If the world
price of the product were $6 and an import quota of 400 units were imposed on the
product, then the equilibrium price in Econland would be
40-145
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
AACSB: Analytical Thinking
Blooms: Analyze
Di f fi cul ty:
03 Hard
Learning Objective: 40-04 Analyze the economic effects of tariffs and quotas.
Test Bank: II
To pic: Trade Barriers and Export Subsidies
273.
Quantity
Demanded
Domestically
Price
Quantity
Supplied
Domestically
1,400
$10
2,200
1,600
9
2,000
1,800
8
1,800
2,000
7
1,600
2,200
6
1,400
2,400
5
1,200
Refer to the accompanying table for a certain product's market in Econland. Assume that
the world price of the product is $6. What would be the difference in the total revenue
received by foreign producers after a quota of 400 units is imposed, compared against the
total revenue received by foreign producers when a $1 per unit tariff is paid?
274. The basic difference in the economic effects of a tariff compared with a quota is that a
275.
Refer to the accompanying graph, where Sd and Dd are the domestic supply and demand
curves for a product. The world price of the product is $6. If this market were closed to
international trade, the total revenue that would go to domestic producers would be
276.
Refer to the accompanying graph, where Sd and Dd are the domestic supply and demand
curves for a product. The world price of the product is $6. If the market is open to
international trade but there is a tariff of $2 per unit imposed, the total government
revenue generated by the tariff would be
277.
Refer to the accompanying graph, where Sd and Dd are the domestic supply and demand
curves for a product. The world price of the product is $6. If an import quota of 40 units
were imposed on the product, then the equilibrium price would be
278.
Refer to the accompanying graph, where Sd and Dd are the domestic supply and demand
curves for a product. The world price of the product is $6. If the economy is open to
international trade but a per unit tariff of $4 is imposed, then the total revenue going to
domestic producers would be
279.
Refer to the accompanying graph, where Sd and Dd are the domestic supply and demand
for a product. The world price of the product is $6. What would be the difference in the
total revenue received by foreign producers after a quota of 20 units is imposed compared
with the total revenue received by foreign producers when a $4 per unit tariff is imposed?
280. From an economic perspective, studies of the costs of trade barriers show that they
40-151
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Di ff i c u lt y: 03 Hard
Learning Objective: 40-04 Analyze the economic effects of tariffs and quotas.
Test Bank: II
Topic:
Trade Barriers and Export Subsidies
281. The use of tariffs and quotas for trade protection results in
282. Common arguments often raised to present the case for protectionism include the
following, except
283. The following are commonly used arguments for protection against imports, except
40-152
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
AACSB: Analytical Thinking
A c c e s s i b i l i t y :
Keyboard Navigation
Blooms: Analyze
Di ff i c u lt y: 03 Hard
Learning Objective: 40-05 Analyze the validity of the most frequently presented arguments for
protectionism.
Test Bank: II
To pic: The Case for Protection: A Critical Review
284. Dumping is the sale of a product in a foreign market
285. What is one of the major shortcomings of using tariffs or quotas to "save American
jobs"?
40-153
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Topic:
The Case for Protection: A Critical Review
286. Which of the following is a valid counterargument to a call for higher tariffs "to save
U.S. jobs"?
287. Which of the following is a valid counterargument to the call for higher tariffs to save
U.S. jobs?
288. Which of the following is a likely result of imposing tariffs to increase domestic
employment?
289. Which is a valid counterargument to the infant industry argument for protective tariffs?
290. "The nation needs to prevent foreign nations from selling their excess goods in our
nation at a price below cost so we can save American firms." This quotation would be most
closely associated with which protectionist argument?
