Question 1

Why might trade cause income inequality?

Accepted Answer

The people of some countries have a comp

Question 2

When is an import ban the same as an import quota?

Accepted Answer

A) when the quota is zero 
B) never 
C) when all the goods under the quota is taxed 
D) when the good under the import ban is taxed 
A) when the quota is zero 
B) never 
C) when all the goods under the quota is taxed 
D) when the good under the import ban is taxed

Question 3

A voluntary export restraint is a trade policy by which a nation agrees to limit its:

Accepted Answer

A) exports of a good in order to avoid more restrictive trade policies. 
B) imports of a good,but only under the threat of more restrictive trade policies. 
C) exports of a good in order to increase employment. 
D) imports of a good. 
A) exports of a good in order to avoid more restrictive trade policies. 
B) imports of a good,but only under the threat of more restrictive trade policies. 
C) exports of a good in order to increase employment. 
D) imports of a good.

Question 4

Suppose nation A produces only two goods,apples and oranges.If nation A produces only apples,it can make 16 apples per day.If nation A produces only oranges,it can make 4 oranges per day.If the country has a constant production trade-off between apples and oranges,then the opportunity cost of one apple in nation A is:

Accepted Answer

A) .25 oranges. 
B) 4 oranges. 
C) 16 oranges. 
D) 2 oranges. 
A) .25 oranges. 
B) 4 oranges. 
C) 16 oranges. 
D) 2 oranges.

Question 5

Under GATT's "Most Favored Nation" provision countries can reduce tariffs only for their allies.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) 90. 
B) 100. 
C) 150. 
D) 40. 
A) 90. 
B) 100. 
C) 150. 
D) 40.

Question 7

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

Accepted Answer

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

Question 8

Daily Output of Japan and U.S.
   Table 18.2
-Refer to Table 18.2.The opportunity cost of tractors in the U.S.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 9

Daily Output of Japan and U.S.
   Table 18.2
-Refer to Table 18.2.Possible terms of trade between the U.S.and Japan are:

Accepted Answer

A) 1 stereo for 8 tractors. 
B) 1 tractor for 3 stereos. 
C) 1 stereo for 1/3 tractor. 
D) 1 tractor for 1/3 stereo. 
A) 1 stereo for 8 tractors. 
B) 1 tractor for 3 stereos. 
C) 1 stereo for 1/3 tractor. 
D) 1 tractor for 1/3 stereo.

Question 10

According to the Application,what effects of the Chinese imports were disadvantageous to local communities?

Accepted Answer

A) more workers receiving unemployment insurance 
B) more workers receiving disability payments 
C) more workers relying on food stamps from the government 
D) All of the above are correct. 
A) more workers receiving unemployment insurance 
B) more workers receiving disability payments 
C) more workers relying on food stamps from the government 
D) All of the above are correct.

Question 11

From the perspective of consumers,a quota is preferred to a tariff.

Accepted Answer

A) True 
 B)False

Question 12

As punishment to Europe for refusing to remove their ban on U.S.and Canadian hormone-treated beef,the WTO allowed the U.S.and Canada:

Accepted Answer

A) to ban only European beef from entering their countries. 
B) to ban all goods and services imported from Europe. 
C) impose retaliatory tariffs on a wide range of European products. 
D) impose retaliatory quotas on a wide range of European products. 
A) to ban only European beef from entering their countries. 
B) to ban all goods and services imported from Europe. 
C) impose retaliatory tariffs on a wide range of European products. 
D) impose retaliatory quotas on a wide range of European products.

Question 13

The GATT was initiated in 1947 by the U.S.and how many other countries?

Accepted Answer

A) 23 
B) 13 
C) 40 
D) 147 
A) 23 
B) 13 
C) 40 
D) 147

Question 14

A tariff is a:

Accepted Answer

A) tax on an imported good. 
B) tax on a domestically produced goods. 
C) limit on the amount a good that can be imported. 
D) voluntary reduction of exports. 
A) tax on an imported good. 
B) tax on a domestically produced goods. 
C) limit on the amount a good that can be imported. 
D) voluntary reduction of exports.

Question 15

Which of the following trade agreements provides for the development of a single market among its members?

Accepted Answer

A) North American Free Trade Agreement 
B) World Trade Organization 
C) European Union 
D) Asian Pacific Economic Cooperation 
A) North American Free Trade Agreement 
B) World Trade Organization 
C) European Union 
D) Asian Pacific Economic Cooperation

Question 16

The example of the VCRs from Korea illustrates dumping due to:

Accepted Answer

A) predatory pricing. 
B) avoidance of environmental laws. 
C) price discrimination. 
D) retaliatory trade practices. 
A) predatory pricing. 
B) avoidance of environmental laws. 
C) price discrimination. 
D) retaliatory trade practices.

Question 17

A possible reason a nation might impose a protectionist policy such as a tariff is to:

Accepted Answer

A) increase the level of imports. 
B) protect an infant industry from foreign competitors. 
C) encourage specialization in the good in which the nation has a comparative advantage. 
D) slow domestic production. 
A) increase the level of imports. 
B) protect an infant industry from foreign competitors. 
C) encourage specialization in the good in which the nation has a comparative advantage. 
D) slow domestic production.

Question 18

List four protectionist policies.

Accepted Answer

Protectionist polici

Question 19

The combinations of goods a nation can consume after trade and specialization begin are illustrated by the ________ curve.

Accepted Answer

A) supply 
B) production possibilities 
C) consumption possibilities 
D) demand 
A) supply 
B) production possibilities 
C) consumption possibilities 
D) demand

Question 20

Figure 18.3
-Refer to Figure 18.3.With a tariff or quota,the equilibrium price is:

Accepted Answer

A) $2. 
B) $12. 
C) $8. 
D) $10. 
A) $2. 
B) $12. 
C) $8. 
D) $10.

Why might trade cause income inequality?

When is an import ban the same as an import quota?

A voluntary export restraint is a trade policy by which a nation agrees to limit its:

Under GATT's "Most Favored Nation" provision countries can reduce tariffs only for their allies.

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

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

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

Daily Output of Japan and U.S. Table 18.2 -Refer to Table 18.2.Possible terms of trade between the U.S.and Japan are:

According to the Application,what effects of the Chinese imports were disadvantageous to local communities?

From the perspective of consumers,a quota is preferred to a tariff.

As punishment to Europe for refusing to remove their ban on U.S.and Canadian hormone-treated beef,the WTO allowed the U.S.and Canada:

The GATT was initiated in 1947 by the U.S.and how many other countries?

A tariff is a:

Which of the following trade agreements provides for the development of a single market among its members?

The example of the VCRs from Korea illustrates dumping due to:

A possible reason a nation might impose a protectionist policy such as a tariff is to:

List four protectionist policies.

The combinations of goods a nation can consume after trade and specialization begin are illustrated by the ________ curve.

Figure 18.3 -Refer to Figure 18.3.With a tariff or quota,the equilibrium price is:

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

Why might trade cause income inequality?

When is an import ban the same as an import quota?

A voluntary export restraint is a trade policy by which a nation agrees to limit its:

Under GATT's "Most Favored Nation" provision countries can reduce tariffs only for their allies.

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

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

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

Daily Output of Japan and U.S. Table 18.2 -Refer to Table 18.2.Possible terms of trade between the U.S.and Japan are:

According to the Application,what effects of the Chinese imports were disadvantageous to local communities?

From the perspective of consumers,a quota is preferred to a tariff.

As punishment to Europe for refusing to remove their ban on U.S.and Canadian hormone-treated beef,the WTO allowed the U.S.and Canada:

The GATT was initiated in 1947 by the U.S.and how many other countries?

A tariff is a:

Which of the following trade agreements provides for the development of a single market among its members?

The example of the VCRs from Korea illustrates dumping due to:

A possible reason a nation might impose a protectionist policy such as a tariff is to:

List four protectionist policies.

The combinations of goods a nation can consume after trade and specialization begin are illustrated by the ________ curve.

Figure 18.3 -Refer to Figure 18.3.With a tariff or quota,the equilibrium price is:

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