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PAGE 1 Copyright 2020 ? McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. International Economics, 17e (Pugel) Chapter 1 International Economics Is Different 1) In 2018, why did the United States impose temporary safeguard tariffs beginning at 30 percent on imports of solar panels and up to 50 percent on imports of washing machines? A) The United States wanted to ensure that it remained a net exporter of washing machines and solar panels. B) The U.S. International Trade Commission found that rising imports had harmed U.S. firms in these industries. C) Because of growing U.S. demand for washing machines and solar panels, the United States government saw the opportunity to increase government revenue and imposed tariffs on these products. D) The United States government imposed tariffs on washing machines and solar panels in retaliation for other countries tariffs on U.S. exports of durable goods. Answer: B Difficulty: 1 Easy Topic: Four Controversies Blooms: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 2) What was the rationale the United States used to justify imposing tariffs of 25 percent on imports of steel and 10 percent on imports of aluminum in 2018? A) The tariffs on steel and aluminum were in retaliation for China and Mexico imposing tariffs on U.S. exports of pork and other products to those countries. B) The United States government wanted to protect the steel and aluminum industries until firms in those industries achieved lower production costs associated with scale economies. C) The U.S. Department of Commerce found that imports of steel and aluminum threatened United States national security. D) The United States government determined that China, a major exporter of steel and aluminum to the United States, was able to charge a lower price in the U.S. market because of government subsidies provided to Chinese steel and aluminum pro
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