If the dollar appreciates relative to the yen, we would expect:
a. that the Japanese trade surplus with the United States would increase.
b. that Japanese imports from the United States would decrease
c. that Japanese exports to the United States would decrease.
d. both (a) and (b)
d
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Net exports is negative if
A) the value of exports exceeds the value of imports. B) the value of imports exceeds the value of exports. C) the tariff payments are included in the value of imported and exported items. D) too much production occurs in the exporting country during the year.
The above figure shows the market for rice in Japan where price is expressed in dollars. S represents the domestic supply curve, and the horizontal line at P = 1 represents the world supply curve
A $1 per unit tariff has the same effect on producer and consumer surplus as a quota of A) Q1 units. B) Q2 units. C) Q2 - Q1 units. D) Q1 - Q2 units.