S-11 Dumping & Subsidies F08

S-11 Dumping & Subsidies F08 - Chapter 11 Pushing...

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W. J. Streeter MEC 292 – Fall 2008 Chapter 11 Pushing Exports: Dumping & Subsidies
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W. J. Streeter MEC 292  Fall 2008 Economist Paul Krugman What Do Undergrads Need To Know About Trade? The problem is that most of what a student is likely to read or hear about international economics is nonsense. Our primary mission should be to vaccinate the minds of our undergraduates against the misconceptions that are so predominant in what passes for educated discussion about international trade. Our objective should be to equip students to respond intelligently to popular discussion of economic issues. A lot of that discussion will be about international trade, so international trade should be an important part of the curriculum. Offer curves and Rybczinski effects are lovely things. What is crucial, however, is to understand that the level of public discussion is extremely primitive. Indeed, it has sunk so low that people who repeat silly clichés often imagine themselves to be sophisticated. Students need to be prepared for a world in which TV "experts,'' best- selling authors, and $30,000-a-day consultants do not understand budget constraints, let alone comparative advantage.
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W. J. Streeter MEC 292  Fall 2008 Quiz time: Chapter 10 - Arguments for and against Protection 1) Suppose that an unfortunate side-effect of the production of paper is ground water pollution. One possible policy that could be employed to fix this externality is: A A subsidy for the production of paper. B A tax on the production of paper. C A tariff on paper imports. D Private ownership of paper mills.
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W. J. Streeter MEC 292  Fall 2008 Quiz time: Chapter 10 - Arguments for and against Protection 2) The _______ states that if a distortion is present, the most efficient way to eliminate the discrepancy between social and private benefits or costs is to use a policy tool that is directed at the source of the distortion. A) Compensation principle B) Spillover effect C) Distortion incentive D) Specificity rule
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MEC 292  Fall 2008 Quiz time: Chapter 11 - Pushing Exports 3) Which of the following is occurring when a firm is selling it product for a low price in a foreign market, with the purpose of driving its foreign competitors out of business? A) Persistent dumping. B)
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This note was uploaded on 09/21/2009 for the course B 290 taught by Professor Narg during the Spring '09 term at Washington University in St. Louis.

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S-11 Dumping & Subsidies F08 - Chapter 11 Pushing...

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