Test Bank For International Economics Thomas Pugel 17th Edition
International Economics, 17e (Pugel)
Chapter 1 International Economics Is Different
1) In 2018, why did the United States impose temporary safeguard tariffs beginning at 30 percent on imports of solar panels and up to 50 percent on imports of washing machines?
A) The United States wanted to ensure that it remained a net exporter of washing machines and solar panels.
B) The U.S. International Trade Commission found that rising imports had harmed U.S. firms in these industries.
C) Because of growing U.S. demand for washing machines and solar panels, the United States government saw the opportunity to increase government revenue and imposed tariffs on these products.
D) The United States government imposed tariffs on washing machines and solar panels in retaliation for other countries’ tariffs on U.S. exports of durable goods.
Answer: B
Difficulty: 1 Easy
Topic: Four Controversies
Bloom’s: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
2) What was the rationale the United States used to justify imposing tariffs of 25 percent on imports of steel and 10 percent on imports of aluminum in 2018?
A) The tariffs on steel and aluminum were in retaliation for China and Mexico imposing tariffs on U.S. exports of pork and other products to those countries.
B) The United States government wanted to protect the steel and aluminum industries until firms in those industries achieved lower production costs associated with scale economies.
C) The U.S. Department of Commerce found that imports of steel and aluminum threatened United States national security.
D) The United States government determined that China, a major exporter of steel and aluminum to the United States, was able to charge a lower price in the U.S. market because of government subsidies provided to Chinese steel and aluminum producers.
Answer: C
Difficulty: 2 Medium
Topic: Four Controversies
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
3) In July 2018 President Trump acted on recommendations from the Commerce Department and imposed 25 percent tariffs on 818 Chinese products exported to the United States in retaliation for the Chinese government’s
A) support of North Korea’s nuclear weapons program.
B) nationalization of U.S. firms located in China.
C) direct foreign investment in the United States.
D) unfair policies and practices toward U.S. intellectual property such as patents, copyrights, and trade secrets.
Answer: D
Difficulty: 2 Medium
Topic: Four Controversies
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
4) What is an effect of a tariff on steel imports to the United States?
A) Foreign consumers benefit from the effective world-wide increase in the price of steel.
B) U.S. consumers benefit from the increased production of better-quality steel in the United States.
C) U.S. steel producers benefit as the product’s price rises and domestic production increases.
D) U.S. steel workers lose because the increase in the price of steel results in decreased production and unemployment in the steel industry.
Answer: C
Difficulty: 2 Medium
Topic: Four Controversies
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Reviews
There are no reviews yet.