The Table Below Shows the Quantity Demanded (In Thousands) and Quantity

question 45

Multiple Choice

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5

-Steel producers in the United States observe that foreign sales of U.S. steel has drastically declined due to stringent trade policies adopted by the foreign governments and unfair treatment of U.S. steel exports in foreign countries. The lobbying efforts of such loss making U.S. steel manufacturers induce the domestic government to restrict the entry of imported steel and help stimulate the sales of domestically produced steel. Which of the following tariffs is most similar to the example mentioned above?

• A)A tariff imposed by the government to stimulate domestic production of a high-technology good with positive spillover effects
• B)A tariff imposed by the government on the import of cotton textiles because it is an infant industry in the domestic country
• C)An import tariff applied against a foreign monopoly supplying the domestic market
• D)Tariffs imposed by the government on an import competing industry that generates a negative production externality
• E)Reciprocal tariffs introduced by the government of a country as a call for fair trade

---

Definitions:

Negative Reciprocity

A form of exchange where parties aim to get more than they give, often associated with strangers or potential adversaries.

Redistribution

The reallocation or distribution of wealth, resources, or access among a society's members, often intended to achieve social or economic equality.

Silent Trade

A process for the exchange of goods between mutually distrusting ethni c groups so as to avoid directperso nal contact.

Negative Reciprocity

An exchange where one party aims to get more than they give, often at the expense of the other.