Chapter 9 - Test Part 2 (AP MICROECONOMICS) PDF

Preview

Summary

Chapter 9 - Test Part 2 (AP MICROECONOMICS) - Written answers. NO plagiarism. Very complete answers....

Description

AP® Microeconomics | Graded Assignment | Chapter 9 Short Answer and Essay

Name: Sarah Oberto Monasterios Date: April 2021

Graded Assignment Chapter 9 Short Answer and Essay Subjective Short Answer Complete this teacher-scored portion of the Unit Test and submit it to your teacher by the due date for full credit. Spend about ten minutes on each question. Take time to think about your answer before you begin writing. (Score for Question 1: _____ of 2 points)

1. List four benefits of international trade. Answer:

International trade has numerous benefits having in mind that it raises the economic well-being of a nation because the gains of the winners exceed the losses of the losers. Some of the further benefits are that: - There is a greater variety of goods available for consumption; - It promotes efficiency in production; - It fosters peace an goodwill; - There is a more efficient allocation and better use of resources. (Score for Question 2: _____ of 2 points)

2. How does an import quota differ from an equivalent tariff? Answer:

Before diving into the differences between an import quota and an equivalent tariff, it is important to mention that both of them reduce the welfare of domestic consumers, increase the welfare of domestic producers, cause deadweight losses, and raise the domestic price of the good. However, having this in mind, we also know that the only difference for the economy is that the import quota creates surplus for license holders, while the equivalent tariff raises revenue for the government. Essay Spend about thirty minutes on the essay question. Take time to think about your answer before you begin writing. You may want to begin with an outline to organize your ideas and to make sure you answer all parts of the essay. (Score for Question 3: _____ of 10 points) © 2020 K12 Inc. All rights reserved. Copying or distributing without K12’s written consent is prohibited.

Page 1 of 2

AP® Microeconomics | Graded Assignment | Chapter 9 Short Answer and Essay

3. Characterize the two different approaches a nation can take to achieve free trade. Does one approach have an advantage over the other? Answer:

There are two different approaches a nation can take to achieve free trade. These are the unilateral and the multilateral approach. On one hand, a unilateral approach is when a nation removes its trade restrictions on its own, which is the approach that the United Kingdom took in the 19th century as well as the one that Chile and South Korea have taken in recent years. On the other hand, a multilateral approach is when a country reduces its trade restrictions while other countries do the same, which means that it can bargain with its trading partners in order to reduce trade restrictions around the globe. The North American Free Trade Agreement (NAFTA) is an example of this approach. The multilateral approach has two advantages. The first one is that it has the potential to result in freer trade since it can reduce trade restrictions abroad as well as domestically. However, If international negotiations fail, it could result in more restricted trade than under a unilateral approach. Furthermore, the multilateral approach can have a political advantage and may sometimes gain political support when a unilateral reduction can’t.

© 2020 K12 Inc. All rights reserved. Copying or distributing without K12’s written consent is prohibited.

Page 2 of 2...