Chapter 9. Chapter 9

Data Exercises
Chapter 9
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Under Headlines: The Chickens Have Come Home to Roost, the article discusses how high lightweight truck tariffs introduced in 1962 and expanded in 1980 have influenced the production decisions of U.S. automakers. In this question, you will be asked to look at production numbers by type of vehicle for U.S. automakers.

The source of the data is the U.S. Department of Transportation, and they are available United States Department of Transportationn. To access the data:

1. Under “Table 1-15: Annual U.S. motor vehicle production and factory (wholesale) sales (thousands of units),” select “Excel.”

2. This will open an Excel spreadsheet with the data.

Question

a. In 1960, what percentage of total U.S. motor vehicle production was commercial vehicles (which includes pickups and SUVs)?

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Correct answer: 15%. To determine the percentage of total U.S. motor vehicle production that was commercial vehicles in 1960, divide the number of commercial vehicles produced (1,198) by the total production number (7,894) and multiply by 100.

Question

b. In 1985, what percentage of total U.S. motor vehicle production was commercial vehicles (which includes pickups and SUVs)?

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Correct answer: 30%. To determine the percentage of total U.S. motor vehicle production that was commercial vehicles in 1985, divide the number of commercial vehicles produced (3,452) by the total production number (11,638) and multiply by 100.

Question

c. In 2015, what percentage of total U.S. motor vehicle production was commercial vehicles (which includes pickups and SUVs)?

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Correct answer: 66%. To determine the percentage of total U.S. motor vehicle production that was commercial vehicles in 2015, divide the number of commercial vehicles produced (7,943) by the total production number (12,105) and multiply by 100.
Data Exercises
Chapter 9
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Now you will use data from the Japan Automobile Manufacturers, Inc. to determine the quantity and type of automobile exports from Japan to the United States. The data are available Japan Auto Industry Data. To access the data:

1. Scroll down to and select “Database and regulations.”

2. Under “Database and regulations,” select the link for “JAMA Tokyo’s website.”

3. On the Active Matrix Database, make the following selections:

- Under “Data Selection,” choose “Exports (Motor Vehicle).”

- Under “Table Format,” choose “Year and Month / Type: Export Destination.”

- Under “Term,” choose from “1975 January” to “2017 January.”

- Under “Type,” choose “All” and then unselect “Buses.”

- Under “Term and intervals,” choose “12” and “12.”

- Under “Export destination,” unselect all selections except “USA.”

- Select “Submit” at the bottom of the page to open the data.

Question

a. For the year ending December 1984, trucks were what percentage of total automobile exports from Japan to the United States?

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Correct answer: 28%. To determine the percentage of trucks in the total automobile exports from Japan to the United States, divide the number of trucks (727,459) by the total export number (2,579,439) and multiply by 100.

Question

b. For the year ending December 2014, trucks were what percentage of total automobile exports from Japan to the United States?

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Correct answer: 2%. Generic Feedback: To determine the percentage of trucks in the total automobile exports from Japan to the United States, divide the number of trucks (25,111) by the total export number (1,537,676) and multiply by 100.
Data Exercises
Chapter 9
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Comparing the data from the first question and the second question, choose whether the following statements are correct or incorrect:

Question 9.1

The data indicate that production of commercial vehicles as a percentage of total U.S. motor vehicle production increased from 15% to 66% over the period 1960–2015.
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Question 9.2

The data indicate that exports of trucks from Japan to the United States fell from 727,459 to 25,111 over the period 1984–2014.
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Question 9.3

Feedback: The high tariff on lightweight trucks would increase the price of lightweight trucks in the United States, offering a terms-of-trade gain, whereas there would be no such gain from the low tariff on passenger vehicles. It is therefore reasonable to conclude that the tariff rates incentivize domestic lightweight truck production in the United States and disincentivize the export of lightweight trucks from Japan to the United States.
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