ECN 211 Exam 2 – Marburger | Questions and Correct Answers | Latest Update 2024/2025

ECN 211 Exam 2 – Marburger | Questions and Correct Answers | Latest Update 2024/2025 Tariff - Answer -A tax on imported goods Who benefits/loses from free trade? - Answer -1. Foreign producers of steel (exports steel to US) 2. Buyers of steel and steel-related products (price falls and quantity increases) Who is worse off because of free trade? 1. Domestic producer of steel (sells lower quantity and at a lower price) Who benefits from tariffs? (US steel producers example) - Answer -1. Domestic producers of steel (sells more at a higher price) Who is worse off because of the tariff? 1. Foreign producers of steel (sells lower quantity)2. Domestic producers of goods that use steel 3. Buyers of steel- and steel-related products Tariff Bottom Lime - Answer -Trade restrictions benefits the protected domestic industry to the detriment of buyers of goods that use those products Gross Domestic Product (GDP) - Answer -The market value of all final goods and services produced within a country in a given period of time How to calculate GDP - Answer -GDP = Consumption + Investment + Government + Exports - Imports