answer to exercises Ch 12
NSS Exploring Economics 6
Chapter 12 International trade (II) — trade barriers and external trade of Hong Kong
Questions
p.150
Think it over
1.
Why do many governments impose duties on imported goods?
2.
What are the effects of the imposition of duties on the price of imported goods, the volume of imports, the consumer surplus of domestic consumers and the producer surplus of domestic producers?
3.
Why does the Hong Kong Government impose duties on very few types of imports?
p.151
Discuss
12.1
Explain how the imposition of tariffs and quotas may restrict international trade and protect domestic industries.
p.154
Discuss
12.2
‘Free trade benefits everybody in an economy.’ Do you agree? Explain.
Test yourself
12.1
Refer to Fig. 12.5. Explain why the supply curve after the imposition of a unit tariff t is represented by the line abeg (Hint: Find out the quantities supplied at domestic prices below, equal to and above (Pw + t), respectively).
p.160
Discuss
12.3
Who would gain and who would lose under a quota? Fill in the following table with a `´ in the appropriate box and account for them.
Gain
Lose
Reasons
The importing country which imposes a quota Consumers
Producers of import-competing industries The government
The exporting country which faces a quota
Consumers
Producers of exports
The government
p.167
Test yourself
12.2
How do trade barriers imposed on the exports of the mainland of China also adversely affect Hong Kong?
pp.173-176
Exercises
Multiple Choice Questions
1.
Free trade
A. benefits all domestic consumers and producers.
B. benefits domestic consumers of imports but harms domestic producers of import-competing industries.
C. benefits domestic consumers of exports but harms domestic producers of exports.
D. harms all domestic consumers and producers.
2.
Which of the following descriptions about
Chapter 12 International trade (II) — trade barriers and external trade of Hong Kong
Questions
p.150
Think it over
1.
Why do many governments impose duties on imported goods?
2.
What are the effects of the imposition of duties on the price of imported goods, the volume of imports, the consumer surplus of domestic consumers and the producer surplus of domestic producers?
3.
Why does the Hong Kong Government impose duties on very few types of imports?
p.151
Discuss
12.1
Explain how the imposition of tariffs and quotas may restrict international trade and protect domestic industries.
p.154
Discuss
12.2
‘Free trade benefits everybody in an economy.’ Do you agree? Explain.
Test yourself
12.1
Refer to Fig. 12.5. Explain why the supply curve after the imposition of a unit tariff t is represented by the line abeg (Hint: Find out the quantities supplied at domestic prices below, equal to and above (Pw + t), respectively).
p.160
Discuss
12.3
Who would gain and who would lose under a quota? Fill in the following table with a `´ in the appropriate box and account for them.
Gain
Lose
Reasons
The importing country which imposes a quota Consumers
Producers of import-competing industries The government
The exporting country which faces a quota
Consumers
Producers of exports
The government
p.167
Test yourself
12.2
How do trade barriers imposed on the exports of the mainland of China also adversely affect Hong Kong?
pp.173-176
Exercises
Multiple Choice Questions
1.
Free trade
A. benefits all domestic consumers and producers.
B. benefits domestic consumers of imports but harms domestic producers of import-competing industries.
C. benefits domestic consumers of exports but harms domestic producers of exports.
D. harms all domestic consumers and producers.
2.
Which of the following descriptions about