Economics - Unit 5 and 6.2 Review

Ch. 26 - Protectionism is best defined as using tools such as export subsidies, import tariffs, and regulations to artificially lower barriers to domestic exports and increase barriers to imports.

• True

• False

Ch. 26 - Government A has decided to place a 1 dollar duty on the importation of each ton of Green tea.

• Tariff

• Subsidy

• Quota

• Regulation

Ch.26 - Country A has an absolute advantage over Country B in the production of pork. Country B eats pork as a staple of their diet. Country A agrees to limit the export of pigs to Country B to protect their food security.

• Excessive Burdens

• Voluntary Export Restraints

• Quotas

• Embargo

Ch.26 - During the Trump administration, the US placed a tariff on steel and aluminum. China, Turkey, Norway, and Switzerland brought the US to the WTO tribunal. The US said that the countries were...in defense.

• Dumping

• protecting their declining industries

• trying to artificially improve the Terms of Trade

• Protect their infant industries

Ch.26 - Reduces the variety and availability of products to consumers.

• Argument for Protectionism

• Argument against Protectionism

Ch.26 - Stops developing growing populations from creating shocks in the labor market.

• Argument for Protectionism

• Argument against Protectionism

Ch.26 - Keeps a country technologically and militarily strong.

• Argument for Protectionism

• Argument against Protectionism

Ch.26 - This graph tries to illustrate

• Tariffs cause prices to rise and supply to fall in domestic markets

• Tariffs cause demand to fall and prices to fall in domestic markets

• Tariffs cause an increase in taxes

• Tariffs cause a reduction in world supply.

Ch.25 - This graph shows..,

• China has an absolute advantage over the USA in manufactured goods?

• The USA has an absolute advantage in manufactured goods.

• China should put tariffs on software.

• the USA and China are in a trade war.

Ch.25 - Austria is able to produce 100 units of Cheese before specialization and Switzerland is able to produce 20 units of Cheese before specialization. Austria is able to produce 10 units of German mountain pants. Switzerland can produce 1000 units of German mountain pants.

• The opportunity cost ratio for mountain pants is .01 for Austria compared to Switzerland.

• The opportunity cost is .1 for cheese to pants in Austria.

• Switzerland should put a tariff on Cheese.

• Austria has comparative advantage in German mountain pants.