Question 1

Explain how governments restrict international trade and who benefits as well as who loses from the restrictions.

Accepted Answer

Governments use tariffs and nontariff ba...

Question 2

The activities in which U.S. workers are relatively more productive

Accepted Answer

A)   pay higher wages.
B)   are those in which the United States has a comparative advantage.
C)   are at risk of disappearing from the United States when NAFTA is completed.
D)   Both answers A and B are correct.E) B) and C)
F) B) and D)

Question 3

One reason that international trade is restricted is that

Accepted Answer

A)   the individual gain to parties who benefit from the protection will be much larger than the individual loss to parties who lose.
B)   the government cannot measure the cost of protectionism.
C)   protectionism benefits consumers.
D)   the government completely pays the losers from international trade for their losses.E) B) and C)
F) All of the above

Question 4

During the Great Depression in the 1930s, the average tariff level in the United States peaked at about

Accepted Answer

A)   100 percent.
B)   zero.
C)   20 percent.
D)   6 percent.E) B) and C)
F) A) and D)

Question 5

When NAFTA was approved, Congress attempted to soften the losses suffered by some industries by

Accepted Answer

A)   imposing quotas.
B)   reducing tariffs.
C)   creating new jobs to hire workers who lost their jobs because of NAFTA.
D)   setting aside funds to support and retrain workers who lost their jobs because of NAFTA.E) B) and C)
F) A) and C)

Question 6

In 2006, the European Union (EU)  threatened to ban imports of long- grain rice because traces of genetically modified rice were found mixed in to commercial supplies. Instead of a ban, suppose the EU placed a tariff on the import of long- grain rice. Which of the following would be an outcome of this tariff?

Accepted Answer

A)   The EU would gain tariff revenue
B)   The price of long- grain rice in the EU would be higher with a tariff than if rice imports were completely banned
C)   European rice producers would decrease production
D)   The social loss would decreaseE) All of the above
F) A) and D)

Question 7

Currently, the United States has a quota on the amount of sugar that is allowed to be imported into the United States. What would happen to the price of sugar in the United States if the quota was removed? What would happen to U.S. consumption and U.S. production of sugar?

Accepted Answer

If the quota is removed, the p...

Question 8

Which of the following statements is true?

Accepted Answer

A)   International trade with reach industrial countries forces people in the developing countries to work for lower wages.
B)   Unlike other types of international trade, offshoring does not bring any gains from trade.
C)   International trade leads to job losses in both import competing industries and exporting industries.
D)   International trade raises wages in developing countries.E) B) and D)
F) A) and B)

Question 9

When a product is sold in a foreign country at a price that is lower than the cost of production, it is called

Accepted Answer

A)   dumping.
B)   an escape clause.
C)   a countervailing duty.
D)   voluntary export restriction.E) C) and D)
F) All of the above

Question 10

Tariffs _ the domestic price of the good and import quotas _ the domestic price of the good.

Accepted Answer

A)   lower; raise
B)   lower; lower
C)   raise; lower
D)   raise; raiseE) A) and C)
F) A) and B)

Question 11

Which of the statements about the gains from international trade is correct?

Accepted Answer

A)   Everyone loses from international trade.
B)   Everyone gains from international trade.
C)   Some people gain from international trade and some lose; overall the gains exceed the losses.
D)   Some people gain from international trade and some lose, though overall the gains exceed the losses.E) A) and B)
F) A) and C)

Question 12

The Smoot- Hawley Act introduced

Accepted Answer

A)   opportunities for expanding U.S. foreign trade.
B)   a framework promoting international free trade.
C)   revenue tariffs as a major source of U.S. government revenues.
D)   the highest tariffs set by the United States in the last 80 years.E) A) and D)
F) A) and B)

Question 13

Suppose the country of Atlantica imposes a tariff on foreign- produced cars. As a result,

Accepted Answer

A)   there are more efficient trade agreements between Atlantica and its trade partners.
B)   tariff revenue collected by the government in the Atlantica increases.
C)   there is an increase in the number of imported cars.
D)   the gains from trade rise.E) A) and B)
F) A) and C)

Question 14

When a firms "dumps" some of its products in another country, it

Accepted Answer

A)   is specializing according to comparative advantage.
B)   increases the total level of employment in the receiving country.
C)   creates an environmental hazard in the receiving country.
D)   sells its products abroad at a price lower than it costs to produce the goods.E) None of the above
F) A) and B)

Question 15

In a market open to international trade, at the world price the quantity demanded is 150 and quantity supplied is 200. This country will

Accepted Answer

A)   export 50 units.
B)   export 200 units.
C)   import 50 units.
D)   import 150 units.E) B) and D)
F) All of the above

Question 16

A tariff is

Accepted Answer

A)   an agreement to restrict the volume of exports.
B)   a quantitative restriction of imports.
C)   a licensing regulation that limits imports.
D)   a tax on an imported good.E) All of the above
F) A) and B)

Question 17

The infant industry argument is based on the idea of:

Accepted Answer

A)   Global monopoly
B)   Absolute productivity advantage
C)   Countervailing duties
D)   Dynamic comparative advantageE) All of the above
F) A) and D)

Question 18

International trade is restricted because

Accepted Answer

A)   free trade creates an inefficient use of resources.
B)   free trade leads to higher costs.
C)   there is an uneven distribution of benefits and costs of free trade.
D)   free trade stifles diversity and stability.E) C) and D)
F) All of the above

Question 19

Suppose that the country of Pacifica imposes a quota on bananas. The reason that the government imposed this trade restriction could be

Accepted Answer

A)   lobbying from banana farmers in Pacifica.
B)   comparative advantage.
C)   that the government of Pacifica needs to increase its revenue.
D)   Both answers A and B are correct.E) B) and C)
F) C) and D)

Question 20

Suppose that the country of Pacifica sold its cars in Atlantica for less than it costs to produce the cars. Pacifica could be accused of

Accepted Answer

A)   dumping.
B)   engaging in learning- by- doing.
C)   avoiding import quotas.
D)   increasing its gains from trade.E) All of the above
F) None of the above

Exam 15: International Trade Policy

During the Great Depression in the 1930s, the average tariff level in the United States peaked at about

Correct Answer
verified

The activities in which U.S. workers are relatively more productive

Correct Answer
verified

International trade is restricted because

Correct Answer
verified

When NAFTA was approved, Congress attempted to soften the losses suffered by some industries by

Correct Answer
verified

Correct Answer
verified

The Smoot- Hawley Act introduced

Correct Answer
verified

Currently, the United States has a quota on the amount of sugar that is allowed to be imported into the United States. What would happen to the price of sugar in the United States if the quota was removed? What would happen to U.S. consumption and U.S. production of sugar?

Correct Answer
verified
If the quota is removed, the p...
View Answer

Suppose the country of Atlantica imposes a tariff on foreign- produced cars. As a result,

Correct Answer
verified

Suppose that the country of Pacifica sold its cars in Atlantica for less than it costs to produce the cars. Pacifica could be accused of

Correct Answer
verified

One reason that international trade is restricted is that

Correct Answer
verified

When a firms "dumps" some of its products in another country, it

Correct Answer
verified

Tariffs _ the domestic price of the good and import quotas _ the domestic price of the good.

Correct Answer
verified

When a product is sold in a foreign country at a price that is lower than the cost of production, it is called

Correct Answer
verified

In a market open to international trade, at the world price the quantity demanded is 150 and quantity supplied is 200. This country will

Correct Answer
verified

The infant industry argument is based on the idea of:

Correct Answer
verified

Which of the statements about the gains from international trade is correct?

Correct Answer
verified

Suppose that the country of Pacifica imposes a quota on bananas. The reason that the government imposed this trade restriction could be

Correct Answer
verified

Explain how governments restrict international trade and who benefits as well as who loses from the restrictions.

Correct Answer
verified
Governments use tariffs and nontariff ba...
View Answer

A tariff is

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

Exam 15: International Trade Policy

During the Great Depression in the 1930s, the average tariff level in the United States peaked at about

Correct AnswerverifiedShow Answer

The activities in which U.S. workers are relatively more productive

Correct AnswerverifiedShow Answer

International trade is restricted because

Correct AnswerverifiedShow Answer

When NAFTA was approved, Congress attempted to soften the losses suffered by some industries by

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Smoot- Hawley Act introduced

Correct AnswerverifiedShow Answer

Currently, the United States has a quota on the amount of sugar that is allowed to be imported into the United States. What would happen to the price of sugar in the United States if the quota was removed? What would happen to U.S. consumption and U.S. production of sugar?

Correct AnswerverifiedIf the quota is removed, the p...View AnswerShow Answer

Suppose the country of Atlantica imposes a tariff on foreign- produced cars. As a result,

Correct AnswerverifiedShow Answer

Suppose that the country of Pacifica sold its cars in Atlantica for less than it costs to produce the cars. Pacifica could be accused of

Correct AnswerverifiedShow Answer

One reason that international trade is restricted is that

Correct AnswerverifiedShow Answer

When a firms "dumps" some of its products in another country, it

Correct AnswerverifiedShow Answer

Tariffs _ the domestic price of the good and import quotas _ the domestic price of the good.

Correct AnswerverifiedShow Answer

When a product is sold in a foreign country at a price that is lower than the cost of production, it is called

Correct AnswerverifiedShow Answer

In a market open to international trade, at the world price the quantity demanded is 150 and quantity supplied is 200. This country will

Correct AnswerverifiedShow Answer

The infant industry argument is based on the idea of:

Correct AnswerverifiedShow Answer

Which of the statements about the gains from international trade is correct?

Correct AnswerverifiedShow Answer

Suppose that the country of Pacifica imposes a quota on bananas. The reason that the government imposed this trade restriction could be

Correct AnswerverifiedShow Answer

Explain how governments restrict international trade and who benefits as well as who loses from the restrictions.

Correct AnswerverifiedGovernments use tariffs and nontariff ba...View AnswerShow Answer

A tariff is

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
If the quota is removed, the p...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Governments use tariffs and nontariff ba...
View Answer

Correct Answer
verified

Correct Answer
verified