Question 1

An import quota:

Accepted Answer

A) limits the amount of a good that can be imported,thus decreasing prices. 
B) limits the amount of a good that can be imported,thus increasing prices. 
C) increases the amount of a good imported,thus decreasing prices. 
D) increases the amount of a good imported,thus increasing prices. 
A) limits the amount of a good that can be imported,thus decreasing prices. 
B) limits the amount of a good that can be imported,thus increasing prices. 
C) increases the amount of a good imported,thus decreasing prices. 
D) increases the amount of a good imported,thus increasing prices.

Question 2

Among the problems associated with subsidizing an industry in the hope of establishing a worldwide monopoly is that if two nations subsidize firms in the same industry,each could lose money.

Accepted Answer

A) True 
 B)False

Question 3

Daily Output of Scotland and Poland
   Table 18.1
-Refer to Table 18.1.The nation with a comparative advantage in bagpipes is:

Accepted Answer

A) both Scotland and Poland. 
B) neither Scotland nor Poland. 
C) Poland. 
D) Scotland. 
A) both Scotland and Poland. 
B) neither Scotland nor Poland. 
C) Poland. 
D) Scotland.

Question 4

What does the World Trade Organization do?

Accepted Answer

The WTO oversees GATT and othe

Question 5

In the last few decades there has been considerable progress in lowering the barriers to international trade.

Accepted Answer

A) True 
 B)False

Question 6

The rate at which nations will exchange goods and service is known as the:

Accepted Answer

A) exchange rate. 
B) transfer rate. 
C) terms of trade. 
D) terms of exchange. 
A) exchange rate. 
B) transfer rate. 
C) terms of trade. 
D) terms of exchange.

Question 7

The opportunity cost of a table is 5 chairs in nation A and 1 chair in nation B.If the nations specialize and trade,an acceptable terms of trade for both nations would be 3 chairs per table.

Accepted Answer

A) True 
 B)False

Question 8

When the U.S.banned tuna from Mexico because Mexico used nets that killed dolphins,they acted in concordance with WTO rules.

Accepted Answer

A) True 
 B)False

Question 9

Figure 18.4
-Refer to Figure 18.4.With free trade,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 10

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

Accepted Answer

A) 150. 
B) 90. 
C) 80. 
D) 120. 
A) 150. 
B) 90. 
C) 80. 
D) 120.

Question 11

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

Accepted Answer

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

Question 12

If the U.S.government imposes an import ban on German made cars,then:

Accepted Answer

A) no German made cars can enter the U.S. 
B) any German made car after a certain predetermined number is not allowed. 
C) no German made can can enter the U.S.without being taxed. 
D) any German made car after a certain predetermined number is taxed. 
A) no German made cars can enter the U.S. 
B) any German made car after a certain predetermined number is not allowed. 
C) no German made can can enter the U.S.without being taxed. 
D) any German made car after a certain predetermined number is taxed.

Question 13

According to the Application,what was the moral of the story concerning free trade?

Accepted Answer

A) Trade affects both employment and prices. 
B) Everyone gets hurt from free trade. 
C) Everyone benefits from free trade. 
D) Trade amplifies a country's income inequality. 
A) Trade affects both employment and prices. 
B) Everyone gets hurt from free trade. 
C) Everyone benefits from free trade. 
D) Trade amplifies a country's income inequality.

Question 14

Would consumers benefit more from a tariff or a quota on imports? Explain.

Accepted Answer

In both cases,the price of the good is h

Question 15

The equilibrium price under an import quota is above the price that occurs with free trade.

Accepted Answer

A) True 
 B)False

Question 16

The phenomenon that occurs when an infant industry becomes better and more efficient as it produces more of a good is called:

Accepted Answer

A) learning by doing. 
B) learning to walk. 
C) comparative advantage. 
D) crawling then walking. 
A) learning by doing. 
B) learning to walk. 
C) comparative advantage. 
D) crawling then walking.

Question 17

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

Accepted Answer

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

Question 18

Daily Output of Scotland and Poland
   Table 18.1
-Refer to Table 18.1.The nation with a comparative advantage in accordions is:

Accepted Answer

A) both Scotland and Poland. 
B) neither Scotland nor Poland. 
C) Poland. 
D) Scotland. 
A) both Scotland and Poland. 
B) neither Scotland nor Poland. 
C) Poland. 
D) Scotland.

Question 19

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

Accepted Answer

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

Question 20

The production possibilities curve shows the combinations of goods that can be:

Accepted Answer

A) consumed by a nation before trade begins. 
B) produced by a nation before trading begins. 
C) produced by a nation after trade begins. 
D) all of the above. 
A) consumed by a nation before trade begins. 
B) produced by a nation before trading begins. 
C) produced by a nation after trade begins. 
D) all of the above.

An import quota:

Among the problems associated with subsidizing an industry in the hope of establishing a worldwide monopoly is that if two nations subsidize firms in the same industry,each could lose money.

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.The nation with a comparative advantage in bagpipes is:

What does the World Trade Organization do?

In the last few decades there has been considerable progress in lowering the barriers to international trade.

The rate at which nations will exchange goods and service is known as the:

The opportunity cost of a table is 5 chairs in nation A and 1 chair in nation B.If the nations specialize and trade,an acceptable terms of trade for both nations would be 3 chairs per table.

When the U.S.banned tuna from Mexico because Mexico used nets that killed dolphins,they acted in concordance with WTO rules.

Figure 18.4 -Refer to Figure 18.4.With free trade,what is the equilibrium quantity of artichokes in Duckland?

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

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

If the U.S.government imposes an import ban on German made cars,then:

According to the Application,what was the moral of the story concerning free trade?

Would consumers benefit more from a tariff or a quota on imports? Explain.

The equilibrium price under an import quota is above the price that occurs with free trade.

The phenomenon that occurs when an infant industry becomes better and more efficient as it produces more of a good is called:

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

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.The nation with a comparative advantage in accordions is:

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

The production possibilities curve shows the combinations of goods that can be:

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

An import quota:

Among the problems associated with subsidizing an industry in the hope of establishing a worldwide monopoly is that if two nations subsidize firms in the same industry,each could lose money.

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.The nation with a comparative advantage in bagpipes is:

What does the World Trade Organization do?

In the last few decades there has been considerable progress in lowering the barriers to international trade.

The rate at which nations will exchange goods and service is known as the:

The opportunity cost of a table is 5 chairs in nation A and 1 chair in nation B.If the nations specialize and trade,an acceptable terms of trade for both nations would be 3 chairs per table.

When the U.S.banned tuna from Mexico because Mexico used nets that killed dolphins,they acted in concordance with WTO rules.

Figure 18.4 -Refer to Figure 18.4.With free trade,what is the equilibrium quantity of artichokes in Duckland?

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

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

If the U.S.government imposes an import ban on German made cars,then:

According to the Application,what was the moral of the story concerning free trade?

Would consumers benefit more from a tariff or a quota on imports? Explain.

The equilibrium price under an import quota is above the price that occurs with free trade.

The phenomenon that occurs when an infant industry becomes better and more efficient as it produces more of a good is called:

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

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.The nation with a comparative advantage in accordions is:

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

The production possibilities curve shows the combinations of goods that can be:

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