Arguments in Favor of Trade Restrictions (Barriers)

Read the news article packet about different arguments in favor of trade restrictions (barriers) and pp. 139-145 in the Carbaugh 16th ed. textbook.

1. What is meant by the term, "infant industry"?

2. Based on the news articles/political cartoons and the textbook, list examples of specific countries and industries considered to be an "infant industry" in a particular country.

3. Based on the news articles/political cartoons and the textbook, list examples of situations which have generated discussion of the need/desire to protect worker wages and/or jobs.

4. What is meant by the phrase, "level playing field" in the context of international trade?

5. Based on the news articles/political cartoons and the textbook, list examples of specific countries and industries concerned about an unlevel playing field in the context of international trade.

6. Why did the U.S. impose a trade embargo against Cuba? How does the data posted by the U.S. Census Bureau corroborate that there was an effective trade embargo? How does the EU apparently view Cuba now?

7. Why have trade sanctions been imposed on North Korea and Iran?

8. Pick one of the political cartoons. Knowing you're taking this course, pretend your mom asks you to explain it to her. Briefly discuss.

It is said that economic crises (such as the economic recession) can be expected through the performance of financial markets in the period prior to them.

1- What is meant by that?

2- What is your personal opinion?

d-i especially!

Canada and the US trade apples. The Canadian domestic demand (Qd C) and supplycurves (QsC) are: ??? = 850 − 10?1 ??? = −20 + 35?1 The US domestic demand (QdU) and supply curves (QsU) are: ??? = 150 − 5?2 ??? = −35 + 20?2

a. Assume that there is no trade allowed. What are the equilibrium autarky prices and quantities of apples in Canada and the US? Which country is likely to export and which will import. Explain why.

b. Now liberalize trade and assume that there are no wedges between prices in Canada and the US (i.e. ?1 = ?2). What are the equilibrium prices, quantities produced, consumed, and traded in each country?

c. Calculate the effects on consumer and producer surplus in each country and compare the impacts between autarky and liberalized trade.

d. Suppose there is a transportation cost of $5 per unit. Calculate the new equilibrium prices, quantities consumed, produced and traded.

e. Introduce a 20% ad valorem tariff in Canada. Calculate the new equilibrium prices, quantities consumed, produced and traded.

f. Introduce a $7 per unit export subsidy in the US. Calculate the new equilibrium prices, quantities consumed, produced and traded.

g. Introduce a $5 per unit producer subsidy in the US. Calculate the new equilibrium prices, quantities consumed, produced and traded.

h. Introduce a $5 per unit consumer subsidy in the Canada. Calculate the new equilibrium prices, quantities consumed, produced and traded

i. In all the questions above we assumed that both countries had the same currency. Now suppose that the Canadian currently appreciates by 20%. (Hint: P1=0.8*P2). Calculate the new equilibrium prices, quantities consumed, produced and traded.

The National Collegiate Athletic Association (NCAA) restricts the amount that colleges and universities may pay their student athletes. Suppose that there are just two colleges in the NCAA: Ivy and State. Each must choose between paying athletes according to NCAA rules and paying more. If both Ivy and State follow the NCAA salaries, then each would earn $3 million. If one follows the NCAA salaries and the other pays more than NCAA salaries, then the college paying more can attract better players and would earn $5 million, while the college following NCAA would earn just $1 million. If both colleges pay more than NCAA salaries, they would increase their costs but not get better players, so both would earn $2 million.

Address these areas in your discussion:

1. Construct a game in strategic form to analyze the choices of Ivy and State, and identify the equilibrium/equilibria.
2. With government backing, the NCAA can punish colleges that pay more than the NCAA permitted salaries. How would this affect the equilibrium/equilibria?
3. Which of the following concepts best describes the NCAA rules on player salaries: monopoly, monopsony, economies of scale, or economies of scope. Explain your answer.

which ethnic group in the United States grew the fastet during the 1990

Discuss the major differences of European welfare states and the American welfare state? What is the most striking difference? What kinds of conversations might you have with family or friends about this? How will you feel safe?

Do you agree or not and explain why in each of the three cases:

A. If the CPI goes down from 240 to 235, then there is disinflation in the economy.  

B. Prices of some goods may fall and other goods prices will rise.

C. Price for all goods and service increase at the same rate and in all locations in the US.

How could government prevent banks from failing due to insolvency and illiquidity?

In what ways do you think technology is changing the nature of customer service and service offerings? Provide an example to support your opinion.

A consumer has demand for two different goods, x and y, which he chooses to maximize the utility function:

U(x,y)=√x+√y (x≥0, y≥0) subject to the budget constraint:

px+qy=m (m,p,q>0)

where p is the price of good x, q is the price of good y, and m is total income a) Show that the utility function is concave

b) Write out the Lagrangian for the constrained maximization problem, assuming consumer spends his full income

c) Find the utility maximizing demands for both goods, as well as the Lagrange multiplier, all as functions of the three exogenous variables

d) Are the demand functions which you have found homogeneous in prices and income (prove your answer) ? If yes, what is the degree of homogeneity?

1. The number of people who filed claims for unemployment benefits in the last two weeks of March was about 1 million more jobs lost than

a)were lost in the previous two weeks

b)were lost in the previous four weeks

c)the entire number of jobs in the state of Florida

d)were lost in the first two weeks of the Great Recession

2. The source for most of the data reported in the media about confirmed COVID cases and deaths is produced by

a) the World Health Organization

b) Johns Hopkins University

c) the Center for Disease Control

d) The National Institute of Health

3. According to CBO projections, real GDP growth could be ___________ in the second quarter on an annualized basis.

a)-10%

b)2.1%

c)-5%

d)-28%