Question 1

If we eliminated our textile tariffs,the dislocated workers could easily switch to other jobs.

Accepted Answer

A) True 
 B)False

Question 2

Since 1973,in the United States wages of skilled workers have:

Accepted Answer

A) risen more slowly than those of unskilled workers. 
B) fallen due to foreign trade. 
C) remained constant. 
D) risen faster than those of unskilled workers. 
A) risen more slowly than those of unskilled workers. 
B) fallen due to foreign trade. 
C) remained constant. 
D) risen faster than those of unskilled workers.

Question 3

Which of the following is NOT an original member of the European Union?

Accepted Answer

A) The United Kingdom 
B) Belgium 
C) Germany 
D) France 
A) The United Kingdom 
B) Belgium 
C) Germany 
D) France

Question 4

A tax on an imported good is known as a(n):

Accepted Answer

A) import ban. 
B) tariff. 
C) voluntary export restraint. 
D) import quota. 
A) import ban. 
B) tariff. 
C) voluntary export restraint. 
D) import quota.

Question 5

Suppose Japan produces only two goods,rice and electronics.If Japan has a comparative advantage in electronics,a move toward free trade will:

Accepted Answer

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

Question 6

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

Accepted Answer

A) Q1. 
B) Q3. 
C) Q4. 
D) Q5. 
A) Q1. 
B) Q3. 
C) Q4. 
D) Q5.

Question 7

A limit on the amount of a good that can be imported is known as:

Accepted Answer

A) a tax. 
B) an export agreement. 
C) a tariff. 
D) an import quota. 
A) a tax. 
B) an export agreement. 
C) a tariff. 
D) an import quota.

Question 8

In 2002,President Bush imposed a tariff on imported steel.Which of the following caused President Bush to end the tariff in 2003?

Accepted Answer

A) the threat of retaliatory policies by European countries 
B) the realization that the tariffs hurt the consumers 
C) the request of domestic steel producers to end the tariff 
D) the emotional and diplomatic appeal by leaders in Europe and Japan 
A) the threat of retaliatory policies by European countries 
B) the realization that the tariffs hurt the consumers 
C) the request of domestic steel producers to end the tariff 
D) the emotional and diplomatic appeal by leaders in Europe and Japan

Question 9

If the production possibilities curve is drawn as a straight line it means that:

Accepted Answer

A) the tradeoff between the two goods is increasing. 
B) the tradeoff between the two goods is decreasing. 
C) the tradeoff between the two goods is constant. 
D) no tradeoff is possible between the two goods. 
A) the tradeoff between the two goods is increasing. 
B) the tradeoff between the two goods is decreasing. 
C) the tradeoff between the two goods is constant. 
D) no tradeoff is possible between the two goods.

Question 10

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

Accepted Answer

A) increase equilibrium quantity and prices. 
B) decrease equilibrium quantity and prices. 
C) increase equilibrium quantities,but decrease prices. 
D) decrease equilibrium quantities,but increase prices. 
A) increase equilibrium quantity and prices. 
B) decrease equilibrium quantity and prices. 
C) increase equilibrium quantities,but decrease prices. 
D) decrease equilibrium quantities,but increase prices.

Question 11

What is the GATT?

Accepted Answer

The General Agreement on Tarif

Question 12

Figure 18.4
-Refer to Figure 18.4.With free trade,how many artichokes are produced domestically in Duckland?

Accepted Answer

A) 75 
B) 65 
C) 30 
D) 0 
A) 75 
B) 65 
C) 30 
D) 0

Question 13

Daily Output of Scotland and Poland
   Table 18.1
-Refer to Table 18.1.After trade begins,________ will specialize in the production of accordions and ________ will specialize in the production of bagpipes.

Accepted Answer

A) Scotland;Poland 
B) Poland;Scotland 
C) Poland;Poland 
D) Scotland;Scotland 
A) Scotland;Poland 
B) Poland;Scotland 
C) Poland;Poland 
D) Scotland;Scotland

Question 14

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 16x per day.If nation A produces only y,it can make 4y per day.If nation B produces only x,it can make 20x per day.If nation B produces only y,it can make 4y 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;A 
B) A;B 
C) B;B 
D) B;A 
A) A;A 
B) A;B 
C) B;B 
D) B;A

Question 15

The terms of trade refers to the:

Accepted Answer

A) slope of the production possibilities curve. 
B) relative amounts of the goods that will be exchanged for each other in trade. 
C) opportunity cost of producing each good in each country. 
D) all of the above 
A) slope of the production possibilities curve. 
B) relative amounts of the goods that will be exchanged for each other in trade. 
C) opportunity cost of producing each good in each country. 
D) all of the above

Question 16

Environmental regulations increase trade and economic well-being.

Accepted Answer

A) True 
 B)False

Question 17

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

The citizens of a country may prefer a tariff to a quota because:

Accepted Answer

A) a quota,but not a tariff,generates additional revenue for the government,which can be used for public programs. 
B) a quota,but not a tariff,generates additional profits for importers,not the government. 
C) a tariff,but not a quota,generates additional revenue for the government,which can be used for public programs. 
D) a tariff,but not a quota,generates additional profits for importers,not the government. 
A) a quota,but not a tariff,generates additional revenue for the government,which can be used for public programs. 
B) a quota,but not a tariff,generates additional profits for importers,not the government. 
C) a tariff,but not a quota,generates additional revenue for the government,which can be used for public programs. 
D) a tariff,but not a quota,generates additional profits for importers,not the government.

Question 19

The Asian Pacific Economic Cooperation (APEC)was modeled after NAFTA.

Accepted Answer

A) True 
 B)False

Question 20

Based on what you learned from the application,how will the "constructed value" method used by the Department of Commerce affect the number of cases that it will deem as dumping?

Accepted Answer

A) The Department of Commerce will identify fewer cases of dumping into the U.S. 
B) The Department of Commerce will identify all cases brought in front of them as "not dumping." 
C) The Department of Commerce will identify more cases of dumping into the U.S. 
D) The Department of Commerce will correctly identify all cases as "dumping." 
A) The Department of Commerce will identify fewer cases of dumping into the U.S. 
B) The Department of Commerce will identify all cases brought in front of them as "not dumping." 
C) The Department of Commerce will identify more cases of dumping into the U.S. 
D) The Department of Commerce will correctly identify all cases as "dumping."

If we eliminated our textile tariffs,the dislocated workers could easily switch to other jobs.

Since 1973,in the United States wages of skilled workers have:

Which of the following is NOT an original member of the European Union?

A tax on an imported good is known as a(n):

Suppose Japan produces only two goods,rice and electronics.If Japan has a comparative advantage in electronics,a move toward free trade will:

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

A limit on the amount of a good that can be imported is known as:

In 2002,President Bush imposed a tariff on imported steel.Which of the following caused President Bush to end the tariff in 2003?

If the production possibilities curve is drawn as a straight line it means that:

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

What is the GATT?

Figure 18.4 -Refer to Figure 18.4.With free trade,how many artichokes are produced domestically in Duckland?

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.After trade begins, will specialize in the production of accordions and will specialize in the production of bagpipes.

The terms of trade refers to the:

Environmental regulations increase trade and economic well-being.

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

The citizens of a country may prefer a tariff to a quota because:

The Asian Pacific Economic Cooperation (APEC)was modeled after NAFTA.

Based on what you learned from the application,how will the "constructed value" method used by the Department of Commerce affect the number of cases that it will deem as dumping?

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 we eliminated our textile tariffs,the dislocated workers could easily switch to other jobs.

Since 1973,in the United States wages of skilled workers have:

Which of the following is NOT an original member of the European Union?

A tax on an imported good is known as a(n):

Suppose Japan produces only two goods,rice and electronics.If Japan has a comparative advantage in electronics,a move toward free trade will:

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

A limit on the amount of a good that can be imported is known as:

In 2002,President Bush imposed a tariff on imported steel.Which of the following caused President Bush to end the tariff in 2003?

If the production possibilities curve is drawn as a straight line it means that:

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

What is the GATT?

Figure 18.4 -Refer to Figure 18.4.With free trade,how many artichokes are produced domestically in Duckland?

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.After trade begins,________ will specialize in the production of accordions and ________ will specialize in the production of bagpipes.

The terms of trade refers to the:

Environmental regulations increase trade and economic well-being.

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

The citizens of a country may prefer a tariff to a quota because:

The Asian Pacific Economic Cooperation (APEC)was modeled after NAFTA.

Based on what you learned from the application,how will the "constructed value" method used by the Department of Commerce affect the number of cases that it will deem as dumping?

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 Scotland and Poland Table 18.1 -Refer to Table 18.1.After trade begins, will specialize in the production of accordions and will specialize in the production of bagpipes.