Question 1

Daily Output of Japan and U.S.
   Table 18.2
-Refer to Table 18.2.The nation with a comparative advantage in tractors is:

Accepted Answer

A) both the U.S.and Japan. 
B) neither the U.S.nor Japan. 
C) the U.S. 
D) Japan. 
A) both the U.S.and Japan. 
B) neither the U.S.nor Japan. 
C) the U.S. 
D) Japan.

Question 2

Figure 18.4
-Refer to Figure 18.4.With a tariff or quota,what is the equilibrium quantity of artichokes in Duckland?

Accepted Answer

A) 85 
B) 75 
C) 65 
D) 30 
A) 85 
B) 75 
C) 65 
D) 30

Question 3

Figure 18.5
-For the good in Figure 18.5,with the tariff,the people in the country will buy:

Accepted Answer

A) Q2. 
B) Q1. 
C) Q4. 
D) Q5. 
A) Q2. 
B) Q1. 
C) Q4. 
D) Q5.

Question 4

Which of the following is a problem of subsidizing an industry to help it establish a world monopoly?

Accepted Answer

A) All monopolies create deadweight losses. 
B) A nation may pick the wrong industry to subsidize. 
C) If both the domestic firm and the foreign firm enter the market,nations might end up subsidizing two money losing firms. 
D) both B and C 
A) All monopolies create deadweight losses. 
B) A nation may pick the wrong industry to subsidize. 
C) If both the domestic firm and the foreign firm enter the market,nations might end up subsidizing two money losing firms. 
D) both B and C

Question 5

Figure 18.3
-Refer to Figure 18.3.With an import ban,the equilibrium quantity is:

Accepted Answer

A) 80. 
B) 100. 
C) 60. 
D) 40. 
A) 80. 
B) 100. 
C) 60. 
D) 40.

Question 6

Suppose Canada produces only two goods,corn and automobiles.If Canada has a comparative advantage in automobiles,a move toward free trade will:

Accepted Answer

A) harm automobile workers,benefit corn workers,but benefit the nation as a whole. 
B) harm automobile workers,harm corn workers,but benefit the nation as a whole. 
C) benefit automobile workers,harm corn workers,but harm the nation as a whole. 
D) benefit automobile workers,harm corn workers,but benefit the nation as a whole. 
A) harm automobile workers,benefit corn workers,but benefit the nation as a whole. 
B) harm automobile workers,harm corn workers,but benefit the nation as a whole. 
C) benefit automobile workers,harm corn workers,but harm the nation as a whole. 
D) benefit automobile workers,harm corn workers,but benefit the nation as a whole.

Question 7

Figure 18.2
-Refer to Figure 18.2.In autarky,the maximum amount of tomatoes that Pizzaland can produce is:

Accepted Answer

A) 120. 
B) 90. 
C) 150. 
D) 60. 
A) 120. 
B) 90. 
C) 150. 
D) 60.

Question 8

Free trade makes the people of a country worse off.

Accepted Answer

A) True 
 B)False

Question 9

As a whole,nations are better off after trade and specialization because:

Accepted Answer

A) nations can consume along their consumption possibilities curve,which is above of their production possibilities curve. 
B) nations can consume along their consumption possibilities curve,which is below of their production possibilities curve. 
C) nations can consume along their production possibilities curve,which is above of their consumption possibilities curve. 
D) nations experience an outward shift of their production possibilities curve. 
A) nations can consume along their consumption possibilities curve,which is above of their production possibilities curve. 
B) nations can consume along their consumption possibilities curve,which is below of their production possibilities curve. 
C) nations can consume along their production possibilities curve,which is above of their consumption possibilities curve. 
D) nations experience an outward shift of their production possibilities curve.

Question 10

Figure 18.1
-Refer to Figure 18.1.After trade and specialization begin,the maximum amount of umbrellas that Duckland can consume is:

Accepted Answer

A) 90. 
B) 100. 
C) 150. 
D) 120. 
A) 90. 
B) 100. 
C) 150. 
D) 120.

Question 11

Because U.S.tariffs are higher on textiles,footwear and apparel items,U.S.tariffs fall relatively most heavily on:

Accepted Answer

A) the middle class. 
B) the rich. 
C) the poor. 
D) the government. 
A) the middle class. 
B) the rich. 
C) the poor. 
D) the government.

Question 12

Figure 18.1
-Refer to Figure 18.1.The opportunity cost of producing sunglasses in Duckland is:

Accepted Answer

A) 6/5 umbrellas. 
B) 2/3 umbrellas. 
C) 5/6 umbrellas. 
D) 3/2 umbrellas. 
A) 6/5 umbrellas. 
B) 2/3 umbrellas. 
C) 5/6 umbrellas. 
D) 3/2 umbrellas.

Question 13

Consider the following weekly production possibilities of bagpipes and accordions in Poland and Scotland:   What is each country's opportunity cost of producing bagpipes and accordions? If the countries could,should they trade?

Accepted Answer

Scotland's opportunity cost of a bagpipe

Question 14

If a country bans the importation of a particular good,the market equilibrium is shown by the intersection of the demand and domestic supply curves.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following trade policies will prevent a foreign supplier to sell even one unit of the good in the domestic market?

Accepted Answer

A) import ban 
B) import quota 
C) voluntary export restraint 
D) import tariffs 
A) import ban 
B) import quota 
C) voluntary export restraint 
D) import tariffs

Question 16

Suppose nation A produces only two goods,apples and oranges.If nation A produces only apples,it can make 12 apples per day.If nation A produces only oranges,it can make 36 oranges per day.If the country has a constant production trade-off between apples and oranges,then the opportunity cost of one orange in nation A is:

Accepted Answer

A) 0.33 apples. 
B) 3 apples. 
C) 36 apples. 
D) 12 apples. 
A) 0.33 apples. 
B) 3 apples. 
C) 36 apples. 
D) 12 apples.

Question 17

Daily Output of Japan and U.S.
   Table 18.2
-Refer to Table 18.2.The opportunity cost of stereos in the U.S.is:

Accepted Answer

A) 2 tractors. 
B) 1/4 tractor. 
C) 1/2 tractor. 
D) 4 tractors. 
A) 2 tractors. 
B) 1/4 tractor. 
C) 1/2 tractor. 
D) 4 tractors.

Question 18

According to the Application,what effects of the Chinese imports were advantageous to local communities,but is usually not included in the study done by Autor,Dorn and Hanson?

Accepted Answer

A) lower prices for consumers 
B) improved U.S.-China relations 
C) a stronger local currency. 
D) more export opportunities for U.S.producers. 
A) lower prices for consumers 
B) improved U.S.-China relations 
C) a stronger local currency. 
D) more export opportunities for U.S.producers.

Question 19

According to the infant industry argument for trade protectionism:

Accepted Answer

A) trade barriers must be used to protect domestic workers. 
B) new industries need to be shielded in the early stages of learning by doing. 
C) tariffs imposed to aid new industries should never be removed. 
D) new industries are capable of competing with established rivals. 
A) trade barriers must be used to protect domestic workers. 
B) new industries need to be shielded in the early stages of learning by doing. 
C) tariffs imposed to aid new industries should never be removed. 
D) new industries are capable of competing with established rivals.

Question 20

The World Trade Organization was formed to enforce GATT and other international trade agreements.

Accepted Answer

A) True 
 B)False

Daily Output of Japan and U.S. Table 18.2 -Refer to Table 18.2.The nation with a comparative advantage in tractors is:

Figure 18.4 -Refer to Figure 18.4.With a tariff or quota,what is the equilibrium quantity of artichokes in Duckland?

Figure 18.5 -For the good in Figure 18.5,with the tariff,the people in the country will buy:

Which of the following is a problem of subsidizing an industry to help it establish a world monopoly?

Figure 18.3 -Refer to Figure 18.3.With an import ban,the equilibrium quantity is:

Suppose Canada produces only two goods,corn and automobiles.If Canada has a comparative advantage in automobiles,a move toward free trade will:

Figure 18.2 -Refer to Figure 18.2.In autarky,the maximum amount of tomatoes that Pizzaland can produce is:

Free trade makes the people of a country worse off.

As a whole,nations are better off after trade and specialization because:

Figure 18.1 -Refer to Figure 18.1.After trade and specialization begin,the maximum amount of umbrellas that Duckland can consume is:

Because U.S.tariffs are higher on textiles,footwear and apparel items,U.S.tariffs fall relatively most heavily on:

Figure 18.1 -Refer to Figure 18.1.The opportunity cost of producing sunglasses in Duckland is:

Consider the following weekly production possibilities of bagpipes and accordions in Poland and Scotland: What is each country's opportunity cost of producing bagpipes and accordions? If the countries could,should they trade?

If a country bans the importation of a particular good,the market equilibrium is shown by the intersection of the demand and domestic supply curves.

Which of the following trade policies will prevent a foreign supplier to sell even one unit of the good in the domestic market?

Daily Output of Japan and U.S. Table 18.2 -Refer to Table 18.2.The opportunity cost of stereos in the U.S.is:

According to the Application,what effects of the Chinese imports were advantageous to local communities,but is usually not included in the study done by Autor,Dorn and Hanson?

According to the infant industry argument for trade protectionism:

The World Trade Organization was formed to enforce GATT and other international trade agreements.

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, supply, and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

Filters

Exam 18: International Trade and Public Policy

Daily Output of Japan and U.S. Table 18.2 -Refer to Table 18.2.The nation with a comparative advantage in tractors is:

Figure 18.4 -Refer to Figure 18.4.With a tariff or quota,what is the equilibrium quantity of artichokes in Duckland?

Figure 18.5 -For the good in Figure 18.5,with the tariff,the people in the country will buy:

Which of the following is a problem of subsidizing an industry to help it establish a world monopoly?

Figure 18.3 -Refer to Figure 18.3.With an import ban,the equilibrium quantity is:

Suppose Canada produces only two goods,corn and automobiles.If Canada has a comparative advantage in automobiles,a move toward free trade will:

Figure 18.2 -Refer to Figure 18.2.In autarky,the maximum amount of tomatoes that Pizzaland can produce is:

Free trade makes the people of a country worse off.

As a whole,nations are better off after trade and specialization because:

Figure 18.1 -Refer to Figure 18.1.After trade and specialization begin,the maximum amount of umbrellas that Duckland can consume is:

Because U.S.tariffs are higher on textiles,footwear and apparel items,U.S.tariffs fall relatively most heavily on:

Figure 18.1 -Refer to Figure 18.1.The opportunity cost of producing sunglasses in Duckland is:

Consider the following weekly production possibilities of bagpipes and accordions in Poland and Scotland: What is each country's opportunity cost of producing bagpipes and accordions? If the countries could,should they trade?

If a country bans the importation of a particular good,the market equilibrium is shown by the intersection of the demand and domestic supply curves.

Which of the following trade policies will prevent a foreign supplier to sell even one unit of the good in the domestic market?

Daily Output of Japan and U.S. Table 18.2 -Refer to Table 18.2.The opportunity cost of stereos in the U.S.is:

According to the Application,what effects of the Chinese imports were advantageous to local communities,but is usually not included in the study done by Autor,Dorn and Hanson?

According to the infant industry argument for trade protectionism:

The World Trade Organization was formed to enforce GATT and other international trade agreements.

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, supply, and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

Filters