Question 1

What were the differences between the U.S.tariffs on tires imposed in
2009 and the U.S.tariffs on steel imposed in 2002?

Accepted Answer

The answer of What were the differences between the U.S.tariffs...

Question 2

Explain why the exporting foreign country will always lose when a large
home country imposes a tariff.

Accepted Answer

The answer of Explain why the exporting foreign country will...

Question 3

If the United States is a large country that imposes a 30% tariff on
imported T­shirts with a world price of $5 per T­shirt, what will be the
value of T­shirts once they have cleared U.S.customs?

Accepted Answer

The answer of If the United States is a large...

Question 4

The following graph shows the relationship between a large country
importer of a good, say steel, and its tariff rate (in percentages).Explain
why the curve reaches maximum and then declines.

Accepted Answer

The answer of The following graph shows the relationship between...

Question 5

To measure the impact of a tariff on the total welfare of society, we
Calculate the:

Accepted Answer

Tariffs can impact the welfare of society by affecting producer and consumer surplus as well as government revenue. Choice B takes into account the increase in producer surplus due to the tariff, the increase in government revenue from the tariff, and the decrease in consumer surplus. This provides a more comprehensive measure of the impact of the tariff on society. The other choices do not account for all of these factors.

Question 6

Figure: Home Market I  (Figure: Home Market I) Under free trade, the Home country will import:

Accepted Answer

The answer of Figure: Home Market I  (Figure: Home...

Question 7

Figure: Home Market I  (Figure: Home Market I) The government revenue due to the tariff is:

Accepted Answer

The government revenue due to the tariff is equal to the tariff rate multiplied by the quantity of imports. In this case, the tariff rate is $6 per unit and the quantity of imports is 8 units. Therefore, the government revenue due to the tariff is 6 x 8 = $48.

Question 8

In what way did the U.S.tariff on tires imported from China violate
provisions of the GATT?

Accepted Answer

The answer of In what way did the U.S.tariff on...

Question 9

How high was the U.S.tariff on imported tires from China and when did it
expire?

Accepted Answer

The answer of How high was the U.S.tariff on imported...

Question 10

About how large were the extra deadweight losses incurred by the United
States as a result of the discriminatory tariff against imported Chinese
tires?

Accepted Answer

The answer of About how large were the extra deadweight...

Question 11

The recently imposed 35% tariff on imported Chinese tires initiated a
small trade war between the United States and China.Describe what
happened following the imposition of these tariffs.

Accepted Answer

The answer of The recently imposed 35% tariff on imported...

Question 12

(Figure: Home Market I) The Home market shown in the figure has
Imposed a _____ tariff.

Accepted Answer

The tariff can be calculated as the difference between the world price and the domestic price. Here, the world price is $10 and the domestic price is $16. Therefore, the tariff is $6.

Question 13

A) Is a country a small or large country if it faces a perfectly price elastic
foreign export supply curve?
B) What is the optimal tariff for a country facing a perfectly price elastic
foreign export supply curve?
C) If the foreign export supply is less than the perfectly price elastic
foreign export supply curve, will the optimal tariff increase or decrease as
the price elasticity of demand increases?
D) What happens to the country's welfare if it applies a tariff higher than
the optimal tariff?

Accepted Answer

The answer of A) Is a country a small or...

Question 14

(Figure: Home Market I) What is the deadweight loss because of the
Tariff?

Accepted Answer

The answer of  (Figure: Home Market I) What is...

Question 15

(Figure: Home Market I) After the imposition of the tariff, the producer
Surplus in the Home country:

Accepted Answer

The answer of  (Figure: Home Market I) After the...

Question 16

(Figure: The Soybean Market)
A) What is the price of U.S.soybeans before trade?
B) What is the price of U.S.soybeans after trade?
C) After trade, what will be the quantity of soybeans consumed in the
United States?
D) After trade, how many tons will be produced by the United States?
E) Suppose the U.S.government imposes a tariff of $3 per ton on
imported soybeans.What will be the new U.S.price?
F) Now suppose the U.S.government imposes a tariff of $3 per ton on
imported soybeans.What is the new U.S.quantity produced domestically?
G) What is the new level of imports with the tariff of $3 per ton on
imported soybeans?
H) How much revenue will the U.S.government collect when it imposes
the $3 per ton tariff?
I) How large a tariff would eliminate all imports?

Accepted Answer

The answer of  
(Figure: The Soybean Market)
A) What is...

Question 17

Why did Europe choose to use retaliatory tariffs on U.S.exports of
oranges, apples, and other agricultural goods?

Accepted Answer

The answer of Why did Europe choose to use retaliatory...

Question 18

Why did no U.S.tire producer support the 2009 U.S.tariff on tires
imported from China?

Accepted Answer

The answer of Why did no U.S.tire producer support the...

Question 19

Why would a discriminatory tariff against tires imported from China have
a higher deadweight loss than a nondiscriminatory tariff against all
imported tires?

Accepted Answer

The answer of Why would a discriminatory tariff against tires...

Question 20

When a tariff is imposed, there is always an additional loss.One loss
Occurs when production moves from more efficient foreign producers to
Less efficient domestic producers.This loss is the:

Accepted Answer

The loss described in the question is the production loss. When a tariff is imposed, it increases the price of imported goods, making domestic production relatively more competitive. This causes production to shift from more efficient foreign producers to less efficient domestic producers, resulting in a loss of production efficiency. This is a well-known inefficiency associated with protectionist trade policies.

Quiz 8: Import Tariffs and Quotas Under Imperfect Competition

What were the differences between the U.S.tariffs on tires imposed in 2009 and the U.S.tariffs on steel imposed in 2002?

Explain why the exporting foreign country will always lose when a large home country imposes a tariff.

If the United States is a large country that imposes a 30% tariff on imported Tshirts with a world price of $5 per Tshirt, what will be the value of Tshirts once they have cleared U.S.customs?

The following graph shows the relationship between a large country importer of a good, say steel, and its tariff rate (in percentages).Explain why the curve reaches maximum and then declines.

To measure the impact of a tariff on the total welfare of society, we Calculate the:

Figure: Home Market I (Figure: Home Market I) Under free trade, the Home country will import:

Figure: Home Market I (Figure: Home Market I) The government revenue due to the tariff is:

In what way did the U.S.tariff on tires imported from China violate provisions of the GATT?

How high was the U.S.tariff on imported tires from China and when did it expire?

About how large were the extra deadweight losses incurred by the United States as a result of the discriminatory tariff against imported Chinese tires?

The recently imposed 35% tariff on imported Chinese tires initiated a small trade war between the United States and China.Describe what happened following the imposition of these tariffs.

(Figure: Home Market I) The Home market shown in the figure has Imposed a _____ tariff.

(Figure: Home Market I) What is the deadweight loss because of the Tariff?

(Figure: Home Market I) After the imposition of the tariff, the producer Surplus in the Home country:

Why did Europe choose to use retaliatory tariffs on U.S.exports of oranges, apples, and other agricultural goods?

Why did no U.S.tire producer support the 2009 U.S.tariff on tires imported from China?

Why would a discriminatory tariff against tires imported from China have a higher deadweight loss than a nondiscriminatory tariff against all imported tires?

When a tariff is imposed, there is always an additional loss.One loss Occurs when production moves from more efficient foreign producers to Less efficient domestic producers.This loss is the: