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the dilemma Flashcards

1
Q

free card say thank you

A

thank you yan xin ily

youre welcome ily too

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2
Q

What is the policy of protectionism?

A

Policies to benefit domestic producers of goods and services, insulating them from foreign competition through trade restrictions.

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3
Q

What are the three types of trade barriers?

A
  • Tariffs/Duties
  • Non-tariff barriers
  • Import quotas
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4
Q

What is the impact of tariffs as a form of protectionism?

A

Tariffs raise prices for consumers and protect domestic industries by making imported goods more expensive.

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5
Q

List the advantages of protectionism.

A
  • Protects domestic jobs
  • Encourages local production
  • Reduces trade deficits
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6
Q

List the disadvantages of protectionism.

A
  • Increases prices for consumers
  • Limits choices for consumers
  • May lead to trade wars
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7
Q

What is an import quota?

A

A physical limit on the quantity of a good that can be imported into a country in a given period.

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8
Q

Fill in the blank: The opposite of protectionism is _______.

A

[free trade]

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9
Q

What is a tariff?

A

A tax imposed on imported goods and services.

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10
Q

What are non-tariff barriers?

A

Restrictions that result from prohibitions or specific market requirements, such as import quotas and licenses.

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11
Q

What are administrative barriers?

A

Policies or regulations that influence the quantity of imports, such as health and safety standards.

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12
Q

What is the difference between quotas and tariffs?

A
  • Quotas raise prices but do not generate tax revenue.
  • Tariffs generate tax revenue for the government.
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13
Q

True or False: Imposing a quota allows consumers to benefit from lower international prices.

A

False

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14
Q

What is consumer surplus?

A

The difference between what a consumer is willing to pay and the market price.

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15
Q

What is producer surplus?

A

The difference between the amount a producer receives for selling a good and the minimum amount they are willing to accept.

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16
Q

What does a tariff do to the price of imported goods?

A

It forces the price up, making imported goods relatively expensive in the home market.

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17
Q

Explain the impact of a tariff on domestic industry.

A

It protects domestic industry by making imported goods more expensive, thereby supporting local production.

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18
Q

What is the effect of tariffs on consumer behavior?

A

Consumers have to consume less and pay more, leading to a loss of economic welfare.

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19
Q

Fill in the blank: Exchange controls limit the amount of _______ available to buy imports.

A

[foreign currencies]

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20
Q

What role do subsidies play in protectionism?

A

They directly support domestic producers, enabling them to compete with foreign firms.

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21
Q

What is a voluntary export quota?

A

An agreement between a home government and a foreign government to limit exports to the home country.

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22
Q

What happens to economic welfare when quotas are imposed?

A

There is a loss in economic welfare due to reduced consumption and inefficient production.

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23
Q

What is the formula for the quantity imported after a tariff?

A

Quantity imported after tariff = Q_t - Q_dt

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24
Q

What are the effects of a tariff on consumers?

A

Consumers have to consume less and pay more => loss of economic welfare

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25
What is the Tax Revenue Collected by the government from a tariff?
Area 7 and 8
26
What is Deadweight Loss in the context of a tariff?
Area 6 and 9, referring to the Consumer Surplus that could have been gained if the tariff was not imposed
27
Fill in the blank: Protectionism aims to protect _______.
[Domestic Jobs]
28
What is the Infant Industry Argument?
An infant industry needs time to achieve economies of scale advantages to compete against foreign competition
29
What counter-argument exists for the Infant Industry Argument?
Difficult to determine when to stop protecting the industry; may lead to inefficient resource allocation
30
What does Foreign Subsidization aim to protect against?
Unfair competition from foreign producers subsidized by their governments
31
What is a potential counter-argument to Foreign Subsidization?
Protective measures may lead to retaliation, causing a trade war and reduced international trade
32
What is the purpose of preventing dumping?
To protect against the dumping of excess foreign goods at prices below production cost
33
What is a challenge in proving dumping?
Difficult to prove if a foreign industry is guilty of dumping; subsidized domestic industries may support dumping
34
What are strategic reasons for protectionism?
Protect strategic industries vital for national defense, such as aircraft and petroleum
35
What is a counter-argument to the strategic reasons for protectionism?
Argument may be overstated; unlikely that all supplies will be cut off in case of war
36
True or False: Protectionism can lead to higher prices for consumers.
True
37
Fill in the blank: Protectionism can lead to less _______ for consumers.
[Choices]
38
What is a consequence of domestic firms being protected by tariffs?
They may become inefficient without the incentive to drive cost efficiency
39
What does protectionism distort?
Comparative advantage, leading to inefficient use of resources
40
List the arguments against protectionism
* Raises prices to consumers * Leads to lesser choices * Reduces innovation * Hinders economic growth
41
What is one justification for protectionism related to employment?
To protect employment in strategic industries such as military equipment
42
What is a justification for protectionism regarding new industries?
To allow new domestic industries sufficient time to establish themselves
43
What is a justification for protectionism against foreign competition?
Prevent a foreign country from selling goods at below cost prices
44
What is a counterargument to protecting new domestic industries?
The industry may never achieve full efficiency and resources may be wasted
45
True or False: It is easy to prove allegations of dumping.
False
46
What can administrative barriers be categorized under?
Types of trade restriction
47
What are non-tariff barriers?
Trade restrictions that do not involve tariffs ## Footnote Non-tariff barriers can include quotas, embargoes, and regulations.
48
What is the purpose of tariffs?
To restrict imports by increasing the cost of foreign goods ## Footnote Tariffs are taxes imposed on imported goods.
49
List the types of trade restrictions.
* Tariffs * Non-tariff barriers * Administrative barriers
50
What is one argument for trade restriction?
Protect domestic jobs ## Footnote This argument suggests that limiting imports can preserve local employment.
51
What is the infant industry argument?
Protection for new industries to allow them to grow ## Footnote This argument supports temporary protection for emerging sectors until they become competitive.
52
What does the foreign subsidization argument state?
Foreign governments may subsidize their industries, creating unfair competition ## Footnote This argument highlights the risk that domestic industries face against subsidized foreign goods.
53
What is the dumping argument?
Selling goods in a foreign market at below cost to undermine local businesses ## Footnote Dumping can harm domestic producers by creating unfair price competition.
54
What are strategic reasons for protectionism?
* National security * Economic independence * Protecting critical industries
55
True or False: Protectionism always benefits the economy.
False ## Footnote Protectionism can lead to retaliatory measures and higher prices for consumers.
56
Who is the author of 'Macroeconomics' 12th Ed?
Parkin, M. ## Footnote This textbook is a recommended resource for understanding macroeconomic concepts.
57
What is the focus of the chapter 7 in 'Economics' by Parkin?
Trade and its impact on the economy ## Footnote Chapter 7 discusses various aspects of economic trade, including barriers and benefits.
58
Fill in the blank: Protectionism can lead to _______ in the domestic market.
Higher prices ## Footnote Protectionist measures often raise costs for consumers due to reduced competition.
59
What is one of the main economic effects of protectionism?
Reduced competition ## Footnote Protectionism can stifle competition by limiting foreign entrants into the market.
60
What year was the 'Import Protectionism Explained' video published?
2020 ## Footnote The video provides insights into the implications of import protectionism.
61
What is the significance of the COVID-19 pandemic in relation to food security in Singapore?
Highlighted the importance of strengthening food security ## Footnote Experts stressed that the pandemic revealed vulnerabilities in food supply chains.
62
What does FTA stand for?
Free Trade Agreement ## Footnote FTAs are treaties between two or more countries to facilitate trade by reducing barriers.
63
What is the main focus of the article regarding Singapore’s rice imports?
Alternative sources of rice and climate change impact ## Footnote The article discusses how climate change could affect food security in Singapore.
64
What is the market analysis period mentioned for Singapore's rice industry?
2017-2030 ## Footnote The analysis includes market trends, demand, and growth drivers.

marco econs for kh (10 decks)

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