Question 1

What are the similarities and differences between an import tariff and a voluntary export restraint? What are the differences?

Accepted Answer

Both import tariffs and voluntary export

Question 2

Among the rationales for protection is that it helps the domestic economy grow.

Accepted Answer

A) True 
 B)False

Question 3

What is dumping and why would firms engage in it?

Accepted Answer

Dumping is when the price charged in a f

Question 4

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

Accepted Answer

A) 2 stereos. 
B) 1/4 stereo. 
C) 1/2 stereo. 
D) 4 stereos. 
A) 2 stereos. 
B) 1/4 stereo. 
C) 1/2 stereo. 
D) 4 stereos.

Question 5

Figure 18.5
-In Figure 18.5,compared to free trade,the tariff causes domestic production of the good to:

Accepted Answer

A) increase by Q2-Q1. 
B) decrease by Q2-Q1. 
C) increase by Q5-Q4. 
D) decrease by Q5-Q4. 
A) increase by Q2-Q1. 
B) decrease by Q2-Q1. 
C) increase by Q5-Q4. 
D) decrease by Q5-Q4.

Question 6

If a firm charges a foreign market a lower price than it charges the domestic market that firm is said to be ________ its product.

Accepted Answer

A) disposing of 
B) dumping 
C) transferring 
D) stumping 
A) disposing of 
B) dumping 
C) transferring 
D) stumping

Question 7

An import ban results in:

Accepted Answer

A) a decrease in the supply of the product. 
B) an increase in the product's price. 
C) a decrease in the quantity of the product bought and sold. 
D) all of the above. 
A) a decrease in the supply of the product. 
B) an increase in the product's price. 
C) a decrease in the quantity of the product bought and sold. 
D) all of the above.

Question 8

Consider a nation that has a comparative advantage in the production of goods using unskilled labor.What types of workers will benefit from increased trade,and what type will lose?

Accepted Answer

As a result of trade

Question 9

What are import licenses?

Accepted Answer

A) These are rights,issued by the government,to import goods. 
B) These are rights,issued by a foreign government,to import goods. 
C) These are rights,issued by the government,to buy foreign exchange used to import goods. 
D) These are rights,issued by the government,to produce goods similar to the imported goods. 
A) These are rights,issued by the government,to import goods. 
B) These are rights,issued by a foreign government,to import goods. 
C) These are rights,issued by the government,to buy foreign exchange used to import goods. 
D) These are rights,issued by the government,to produce goods similar to the imported goods.

Question 10

Consider the following weekly production possibilities of bagpipes and accordions in Poland and Scotland:   What is the possible range of terms of trade between Poland and Scotland?

Accepted Answer

A possible set of terms of tra

Question 11

Figure 18.4
-Refer to Figure 18.4.With an import ban,how many artichokes are produced domestically in Duckland?

Accepted Answer

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

Question 12

Daily Output of Japan and U.S.
   Table 18.2
-Refer to Table 18.2.After trade begins,________ will specialize in the production of stereos and ________ will specialize in the production of tractors.

Accepted Answer

A) U.S. ;U.S. 
B) U.S. ;Japan 
C) Japan;U.S. 
D) Japan;Japan 
A) U.S. ;U.S. 
B) U.S. ;Japan 
C) Japan;U.S. 
D) Japan;Japan

Question 13

Which of the following groups of countries are members of NAFTA?

Accepted Answer

A) Japan,Canada,and Mexico 
B) The U.S. ,Japan,and Mexico 
C) The U.S. ,France,and Germany 
D) The U.S. ,Canada,and Mexico 
A) Japan,Canada,and Mexico 
B) The U.S. ,Japan,and Mexico 
C) The U.S. ,France,and Germany 
D) The U.S. ,Canada,and Mexico

Question 14

The increase in the U.S trade deficit with Mexico after NAFTA went into effect was most likely the result of:

Accepted Answer

A) predatory dumping by U.S.companies. 
B) the devaluation of the peso. 
C) the appreciation of the peso. 
D) predatory dumping by Mexican companies. 
A) predatory dumping by U.S.companies. 
B) the devaluation of the peso. 
C) the appreciation of the peso. 
D) predatory dumping by Mexican companies.

Question 15

The difficulty with enforcing anti-dumping laws is that predatory pricing is difficult to determine if the lower price is due to:

Accepted Answer

A) price discrimination. 
B) higher costs. 
C) firm generosity. 
D) economies of scale. 
A) price discrimination. 
B) higher costs. 
C) firm generosity. 
D) economies of scale.

Question 16

Figure 18.2
-Refer to Figure 18.2.After trade and specialization begin,the maximum amount of tomatoes that Pizzaland can consume is:

Accepted Answer

A) 120. 
B) 90. 
C) 80. 
D) 60. 
A) 120. 
B) 90. 
C) 80. 
D) 60.

Question 17

Daily Output of Scotland and Poland
   Table 18.1
-Refer to Table 18.1.If Scotland produces 50 bagpipes,how many accordions can they produce for the rest of the day?

Accepted Answer

A) zero 
B) 25 
C) 50 
D) 1/2 
A) zero 
B) 25 
C) 50 
D) 1/2

Question 18

Daily Output of Scotland and Poland
   Table 18.1
-Refer to Table 18.1.Poland has a comparative advantage in:

Accepted Answer

A) accordions. 
B) bagpipes. 
C) both accordions and bagpipes. 
D) neither accordions nor bagpipes. 
A) accordions. 
B) bagpipes. 
C) both accordions and bagpipes. 
D) neither accordions nor bagpipes.

Question 19

Which of the following situations will arise in the domestic market following the removal of an import quota?

Accepted Answer

A) imports increase,domestic production increases,prices increase 
B) imports increase,domestic production decreases,prices decrease 
C) imports decrease,domestic production increases,prices decrease 
D) imports decrease,domestic production decreases,prices increase 
A) imports increase,domestic production increases,prices increase 
B) imports increase,domestic production decreases,prices decrease 
C) imports decrease,domestic production increases,prices decrease 
D) imports decrease,domestic production decreases,prices increase

Question 20

Dumping is sometimes legal under international trade agreements.

Accepted Answer

A) True 
 B)False

What are the similarities and differences between an import tariff and a voluntary export restraint? What are the differences?

Among the rationales for protection is that it helps the domestic economy grow.

What is dumping and why would firms engage in it?

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

Figure 18.5 -In Figure 18.5,compared to free trade,the tariff causes domestic production of the good to:

If a firm charges a foreign market a lower price than it charges the domestic market that firm is said to be ________ its product.

An import ban results in:

Consider a nation that has a comparative advantage in the production of goods using unskilled labor.What types of workers will benefit from increased trade,and what type will lose?

What are import licenses?

Consider the following weekly production possibilities of bagpipes and accordions in Poland and Scotland: What is the possible range of terms of trade between Poland and Scotland?

Figure 18.4 -Refer to Figure 18.4.With an import ban,how many artichokes are produced domestically in Duckland?

Daily Output of Japan and U.S. Table 18.2 -Refer to Table 18.2.After trade begins, will specialize in the production of stereos and will specialize in the production of tractors.

Which of the following groups of countries are members of NAFTA?

The increase in the U.S trade deficit with Mexico after NAFTA went into effect was most likely the result of:

The difficulty with enforcing anti-dumping laws is that predatory pricing is difficult to determine if the lower price is due to:

Figure 18.2 -Refer to Figure 18.2.After trade and specialization begin,the maximum amount of tomatoes that Pizzaland can consume is:

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.If Scotland produces 50 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.Poland has a comparative advantage in:

Which of the following situations will arise in the domestic market following the removal of an import quota?

Dumping is sometimes legal under 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

What are the similarities and differences between an import tariff and a voluntary export restraint? What are the differences?

Among the rationales for protection is that it helps the domestic economy grow.

What is dumping and why would firms engage in it?

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

Figure 18.5 -In Figure 18.5,compared to free trade,the tariff causes domestic production of the good to:

If a firm charges a foreign market a lower price than it charges the domestic market that firm is said to be ________ its product.

An import ban results in:

Consider a nation that has a comparative advantage in the production of goods using unskilled labor.What types of workers will benefit from increased trade,and what type will lose?

What are import licenses?

Consider the following weekly production possibilities of bagpipes and accordions in Poland and Scotland: What is the possible range of terms of trade between Poland and Scotland?

Figure 18.4 -Refer to Figure 18.4.With an import ban,how many artichokes are produced domestically in Duckland?

Daily Output of Japan and U.S. Table 18.2 -Refer to Table 18.2.After trade begins,________ will specialize in the production of stereos and ________ will specialize in the production of tractors.

Which of the following groups of countries are members of NAFTA?

The increase in the U.S trade deficit with Mexico after NAFTA went into effect was most likely the result of:

The difficulty with enforcing anti-dumping laws is that predatory pricing is difficult to determine if the lower price is due to:

Figure 18.2 -Refer to Figure 18.2.After trade and specialization begin,the maximum amount of tomatoes that Pizzaland can consume is:

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.If Scotland produces 50 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.Poland has a comparative advantage in:

Which of the following situations will arise in the domestic market following the removal of an import quota?

Dumping is sometimes legal under 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

Daily Output of Japan and U.S. Table 18.2 -Refer to Table 18.2.After trade begins, will specialize in the production of stereos and will specialize in the production of tractors.