Suppose that the U.S. imposes a countervailing duty of 10% on coated paper imported from China to offset alleged Chinese subsidies. Suppose further that the U.S. duty-free price of Chinese coated paper imports is $500 per 1,000 meter roll and that the price of an equivalent roll of U.S.made coated paper is $600 per 1,000 meter roll. What is the U.S. government's estimate of the dollar value of the Chinese subsidies?
a. $50 per 1,000 meter roll
b. $60 per 1,000 meter roll
c. $50 to $60 per 1,000 meter roll
d. $100 per 1,000 meter roll
Ans: a. $50 per 1,000 meter roll
You might also like to view...
Carefully explain some of the similar problems faced by otherwise diverse countries in Africa, Asia, and Latin America
What will be an ideal response?
Why did the U.S. temporarily operate outside the production possibilities frontier in 1942, 1943, and 1944?
A. The Civil War B. World War I C. The Great Depression D. World War II
People acting in their own self interest is the basis of the
A) principle of voluntary exchange. B) principle of scarcity. C) real-nominal principle. D) principle of supply and demand.
Which of the following methods could be used to correct for external costs?
A) Impose a tax or an effluent fee on the offenders. B) Have the offender clean up the pollution it caused. C) Require firms in the industry to install pollution control devices. D) All of the above would be appropriate.