Suppose Initially There Is No Customs Union and That the $100

question 53

Multiple Choice

Suppose initially there is no customs union and that the $100
Tariff is imposed by the United States.Now, Mexico invests in
Productive technology and it shifts the Mexican supply curve to
SMex.The United States now forms a customs union with Mexico.
This will result in a price of _______ and imports of _______.

• A)$250; 500
• B)$250; 400
• C)$150; 600
• D)$150; 500

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Definitions:

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the 1930s to help the United States recover from the Great Depression.

Welfare State

A social system in which the government assumes primary responsibility for the welfare of its citizens by providing services such as healthcare, education, and financial support.

Public Works Administration

A New Deal agency in the United States (1933-1944) created to provide public infrastructure jobs in the wake of the Great Depression.

Filipino Repatriation Act

Legislation passed in the United States in 1935, encouraging Filipinos living in the U.S. to return to the Philippines by offering free transportation.