ECON 3800 Midterm: Western Michigan ECON 380 Econ380pe2

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turquoisegnu128

7 Mar 2019

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You should have 7 pages for this exam. Your name is on the first and last page of the exam: multiple choice (30 points 3 points each) for each of the following questions, place your answer in the appropriate space on the last page. C. 340/1$ to c. 325/us$ but the canadian government wants to maintain an exchange rate of. Use the following information in the table to answer questions (7)-(9). Net change in foreign owned assets at home. Investment income received from foreigners: the balance on the current account is a . +100, +200, 100, 200. Short answer (40 points 20 points each) answer each of the following short answer questions in the space provided. Be concise, but do not simply use bullet-points to answer the questions. You may use the backside of these pages if you need more room: most customs unions or free trade agreements are created between countries of close geographical proximity.

Related Questions

Which of the following is TRUE regarding international trade?

Select one:

a. Typically, it is belived that when countries trade with one another, ther eare gains in production efficiency.

b. All of these are correct

c. Freedom to trade internationally adds to the consumers' choices available for purhcase

d. Countries often hope that international trade will help raise the standard of living for their citizens

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Which of the following is TRUE regarding why countries trade with one another?

Select one:

a. Countries trade so that they can get products and services that they are not as efficient in making as other countries.

b. Countries often hope that international trade will help their economy grow

c. All of these are correct

d. Countries trade because not all nations have the same resources.

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Revenue tariffs are levied to

Select one:

a. lower exports.

b. protect domestic producers.

c. increase imports.

d. raise money.

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Tariffs and quotas can have all of the following effects EXCEPT

Select one:

a. protecting domestic industry.

b. reducing trade deficits.

c. increasing prices consumers pay for goods.

d. promoting third-world development.

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The United States trade deficit causes

Select one:

a. the value of the dollar to fall in foreign exchange markets.

b. immediate worldwide recessions.

c. increased employment opportunities for all Americans.

d. the value of the dollar to strengthen in foreign exchange markets.

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Which of the following is true regarding the relationship of international trade and competition?

Select one:

a. International competition, like competition in general, can have effects on the price levels of goods.

b. When countries trade with one another, there is often increased competition among firms offering the same good or service.

c. All of these are correct.

d. When tariffs increase, domestic producers usually have fewer international competitors.

apricotlizard520

According to the News Wire "Import Quotas" page 339, what is the net U.S. job loss from sugar quotas?

NEWS WIRE IMPORT QUOTAS

Obama Cuts Sour Deal on Sugar

President Barack Obama has kept a campaign promise to the sugar lobby at the expense of American families struggling to pay their grocery bills and U.S. manufacturing workers fighting to keep their jobs. . . .

Since the early 1980s, the domestic U.S. sugar industry has enjoyed cartel-like control of the domestic market. A system of price supports and import quotas virtually guarantees domestic beet and cane growers an 80 percent market share. At times, this has forced American families and sugar-consuming industries to pay prices two or three times the spot world price.

This has been bad news for families, who must pay higher prices at the grocery store, but equally bad for a segment of American workers. Artificially high domestic sugar prices raise the cost of production for refined sugar, candy and other confectionary products, chocolate and cocoa products, chewing gum, bread and other bakery products, cookies and crackers, and frozen bakery goods. Higher costs cut into profits and competitiveness, putting thousands of jobs in jeopardy. . . .

In all, 6,400 workers in the sugar-processing industry have lost their jobs because of their own governmentâs deliberate policy to drive up the cost of their major input. According to the U.S. International Trade Commission, the sugar program âsavesâ only 2,200 jobs in the sugar growing and harvesting industry. So our sugar policy eliminates three jobs for every one it saves.

âDaniel Griswold, Cato Institute

NOTE: Import restrictions raise domestic prices, making both domestic consumers and foreign producers worse off. They enrich domestic producers, however.