Question 1

If Cowland can produce milk at a lower opportunity cost than any other nation,Cowland is said to have a(n)________ in the production of milk.

Accepted Answer

A) autarky 
B) absolute advantage 
C) comparative advantage 
D) comparative disadvantage 
A) autarky 
B) absolute advantage 
C) comparative advantage 
D) comparative disadvantage

Question 2

Figure 18.3
-Refer to Figure 18.3.With free trade,the equilibrium quantity is:

Accepted Answer

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

Question 3

Daily Output of Scotland and Poland
   Table 18.1
-Refer to Table 18.1.The opportunity cost of a bagpipe in Scotland is:

Accepted Answer

A) 2 accordions. 
B) 1/2 accordion. 
C) 6 accordions. 
D) 1/3 accordion. 
A) 2 accordions. 
B) 1/2 accordion. 
C) 6 accordions. 
D) 1/3 accordion.

Question 4

Daily Output of Scotland and Poland
   Table 18.1
-Refer to Table 18.1.If Scotland produces 10 bagpipes,how many accordions can they produce for the rest of the day?

Accepted Answer

A) 20 
B) 15 
C) 40 
D) 25 
A) 20 
B) 15 
C) 40 
D) 25

Question 5

Daily Output of Scotland and Poland
   Table 18.1
-Refer to Table 18.1.The opportunity cost of an accordion in Scotland is:

Accepted Answer

A) 2 bagpipes. 
B) 1/2 bagpipe. 
C) 6 bagpipes. 
D) 1/3 bagpipe. 
A) 2 bagpipes. 
B) 1/2 bagpipe. 
C) 6 bagpipes. 
D) 1/3 bagpipe.

Question 6

If Germany can produce cars at a lower opportunity cost than any other nation,Germany is said to have a(n)________ in the production of cars.

Accepted Answer

A) comparative advantage 
B) autarky 
C) absolute advantage 
D) comparative disadvantage 
A) comparative advantage 
B) autarky 
C) absolute advantage 
D) comparative disadvantage

Question 7

Daily Output of Japan and U.S.
   Table 18.2
-Refer to Table 18.2.The U.S.has a comparative advantage in the production of:

Accepted Answer

A) stereos. 
B) tractors. 
C) both stereos and tractors. 
D) neither stereos nor tractors. 
A) stereos. 
B) tractors. 
C) both stereos and tractors. 
D) neither stereos nor tractors.

Question 8

For a nation to have a comparative advantage in a good it must have:

Accepted Answer

A) more resources. 
B) better resources. 
C) a lower opportunity cost of producing that good. 
D) a straight-line production possibilities curve. 
A) more resources. 
B) better resources. 
C) a lower opportunity cost of producing that good. 
D) a straight-line production possibilities curve.

Question 9

Figure 18.3
-Refer to Figure 18.3.With a tariff,the per unit government revenue is:

Accepted Answer

A) $0. 
B) $2. 
C) $8. 
D) $10. 
A) $0. 
B) $2. 
C) $8. 
D) $10.

Question 10

Daily Output of Scotland and Poland
   Table 18.1
-Refer to Table 18.1.The opportunity cost of an accordion in Poland is:

Accepted Answer

A) 2 bagpipes. 
B) 1/2 bagpipe. 
C) 6 bagpipes. 
D) 1/3 bagpipe. 
A) 2 bagpipes. 
B) 1/2 bagpipe. 
C) 6 bagpipes. 
D) 1/3 bagpipe.

Question 11

What are some of the reasons why people protest against free trade?

Accepted Answer

A) People believe that trade can cause income inequality. 
B) Trading with other countries,as opposed to self-sufficiency,diminishes our independence and sovereignty. 
C) Trading with other countries causes us to lose our cultural identity. 
D) All of the above are correct. 
A) People believe that trade can cause income inequality. 
B) Trading with other countries,as opposed to self-sufficiency,diminishes our independence and sovereignty. 
C) Trading with other countries causes us to lose our cultural identity. 
D) All of the above are correct.

Question 12

A situation in which a country does NOT trade with another country is called:

Accepted Answer

A) autarky. 
B) free trade. 
C) comparative advantage. 
D) specialization. 
A) autarky. 
B) free trade. 
C) comparative advantage. 
D) specialization.

Question 13

A restriction on imports is likely to cause further restrictions on trade.

Accepted Answer

A) True 
 B)False

Question 14

Why would a country want to shield domestic workers from foreign competition?

Accepted Answer

Protection

Question 15

Outsourcing occurs when a firm produces components of their good or service in another country.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) $0. 
B) $12. 
C) $10. 
D) $8. 
A) $0. 
B) $12. 
C) $10. 
D) $8.

Question 17

Import bans,import quotas,voluntary export restraints,and tariffs on goods all:

Accepted Answer

A) increase imports and raise prices for consumers. 
B) reduce imports and reduce prices for consumers. 
C) reduce imports and raise prices for consumers. 
D) increase imports and reduce prices for consumers. 
A) increase imports and raise prices for consumers. 
B) reduce imports and reduce prices for consumers. 
C) reduce imports and raise prices for consumers. 
D) increase imports and reduce prices for consumers.

Question 18

Which of the following is an example of a firm that received protection from the government because the government wants the domestic firm to establish a monopoly in the world market?

Accepted Answer

A) Airbus 
B) Apple 
C) Harley Davidson 
D) Ford 
A) Airbus 
B) Apple 
C) Harley Davidson 
D) Ford

Question 19

Suppose there are only 2 nations A and B,and only two goods,x and y.If nation A produces only x,it can make 12x per day.If nation A produces only y,it can make 36y per day.If nation B produces only x,it can make 4x per day.If nation B produces only y,it can make 12y per day.After trade begins,nation ________ will specialize in the production of x and nation ________ will specialize in the production of y.

Accepted Answer

A) A;B 
B) B;B 
C) B;A 
D) No trade will occur. 
A) A;B 
B) B;B 
C) B;A 
D) No trade will occur.

Question 20

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

Accepted Answer

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

If Cowland can produce milk at a lower opportunity cost than any other nation,Cowland is said to have a(n)________ in the production of milk.

Figure 18.3 -Refer to Figure 18.3.With free trade,the equilibrium quantity is:

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.The opportunity cost of a bagpipe in Scotland is:

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.If Scotland produces 10 bagpipes,how many accordions can they produce for the rest of the day?

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.The opportunity cost of an accordion in Scotland is:

If Germany can produce cars at a lower opportunity cost than any other nation,Germany is said to have a(n)________ in the production of cars.

Daily Output of Japan and U.S. Table 18.2 -Refer to Table 18.2.The U.S.has a comparative advantage in the production of:

For a nation to have a comparative advantage in a good it must have:

Figure 18.3 -Refer to Figure 18.3.With a tariff,the per unit government revenue is:

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.The opportunity cost of an accordion in Poland is:

What are some of the reasons why people protest against free trade?

A situation in which a country does NOT trade with another country is called:

A restriction on imports is likely to cause further restrictions on trade.

Why would a country want to shield domestic workers from foreign competition?

Outsourcing occurs when a firm produces components of their good or service in another country.

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

Import bans,import quotas,voluntary export restraints,and tariffs on goods all:

Which of the following is an example of a firm that received protection from the government because the government wants the domestic firm to establish a monopoly in the world market?

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

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

If Cowland can produce milk at a lower opportunity cost than any other nation,Cowland is said to have a(n)________ in the production of milk.

Figure 18.3 -Refer to Figure 18.3.With free trade,the equilibrium quantity is:

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.The opportunity cost of a bagpipe in Scotland is:

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.If Scotland produces 10 bagpipes,how many accordions can they produce for the rest of the day?

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.The opportunity cost of an accordion in Scotland is:

If Germany can produce cars at a lower opportunity cost than any other nation,Germany is said to have a(n)________ in the production of cars.

Daily Output of Japan and U.S. Table 18.2 -Refer to Table 18.2.The U.S.has a comparative advantage in the production of:

For a nation to have a comparative advantage in a good it must have:

Figure 18.3 -Refer to Figure 18.3.With a tariff,the per unit government revenue is:

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.The opportunity cost of an accordion in Poland is:

What are some of the reasons why people protest against free trade?

A situation in which a country does NOT trade with another country is called:

A restriction on imports is likely to cause further restrictions on trade.

Why would a country want to shield domestic workers from foreign competition?

Outsourcing occurs when a firm produces components of their good or service in another country.

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

Import bans,import quotas,voluntary export restraints,and tariffs on goods all:

Which of the following is an example of a firm that received protection from the government because the government wants the domestic firm to establish a monopoly in the world market?

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

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