Question 1

The reason that average labor costs are higher in the United States than in Haiti is that

Accepted Answer

A)  Haitian workers do not have union representation. 
B)  Haitian workers have a comparative advantage. 
C)  U.S. workers have a comparative advantage. 
D)  workers are more productive in the United States. 
A)  Haitian workers do not have union representation. 
B)  Haitian workers have a comparative advantage. 
C)  U.S. workers have a comparative advantage. 
D)  workers are more productive in the United States.

Question 2

How does the United States attempt to compensate losers from lower trade restrictions?

Accepted Answer

The U.S. government attempts to compensa

Question 3

The gains from free trade are enjoyed by a number of people and the costs of free trade are imposed by number of people.

Accepted Answer

A)  large; large 
B)  small; small 
C)  large; small 
D)  small; large 
A)  large; large 
B)  small; small 
C)  large; small 
D)  small; large

Question 4

The U.S.-Colombia Trade Promotion Agreement was signed on November 22, 2006, in Washington, D.C. This comprehensive trade agreement eliminated tariffs and other barriers to goods and services. Colombia will immediately eliminate tariffs on wheat, barley, peanuts, and many other products in which Columbia does not have a comparative advantage. This policy means that the price of peanuts in Columbia will become

Accepted Answer

A)  higher than the price when a tariff was in place. 
B)  equal to the free trade price. 
C)  lower than the free trade price. 
D)  higher than the free trade price. 
A)  higher than the price when a tariff was in place. 
B)  equal to the free trade price. 
C)  lower than the free trade price. 
D)  higher than the free trade price.

Question 5

Which of the following statements concerning tariffs is NOT true?

Accepted Answer

A)  A tariff decreases international trade. 
B)  A tariff creates revenue for the government. 
C)  A tariff results in a deadweight loss. 
D)  A tariff leaves the price of imports unchanged. 
A)  A tariff decreases international trade. 
B)  A tariff creates revenue for the government. 
C)  A tariff results in a deadweight loss. 
D)  A tariff leaves the price of imports unchanged.

Question 6

In 2007, European Union (EU) negotiators have offered to cut tariffs for Latin American bananas to avoid "banana wars". What are the effects of a cut in tariffs?

Accepted Answer

A)  Tariff revenue will increase 
B)  The quantity of bananas produced in the EU (such as in France and Spain) will increase 
C)  The price of bananas for consumers will increase 
D)  The quantity of bananas imported into the EU will increase 
A)  Tariff revenue will increase 
B)  The quantity of bananas produced in the EU (such as in France and Spain) will increase 
C)  The price of bananas for consumers will increase 
D)  The quantity of bananas imported into the EU will increase

Question 7

Based on the table below, suppose the world price was $4. The country would

Accepted Answer

A) 
Import 20 units 
B)  import 10 units 
C)  export 20 units 
D)  export 10 units 
A) 
Import 20 units 
B)  import 10 units 
C)  export 20 units 
D)  export 10 units

The reason that average labor costs are higher in the United States than in Haiti is that

How does the United States attempt to compensate losers from lower trade restrictions?

The gains from free trade are enjoyed by a number of people and the costs of free trade are imposed by number of people.

Which of the following statements concerning tariffs is NOT true?

In 2007, European Union (EU) negotiators have offered to cut tariffs for Latin American bananas to avoid "banana wars". What are the effects of a cut in tariffs?

Based on the table below, suppose the world price was $4. The country would

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

Filters

Exam 15: International Trade Policy

The reason that average labor costs are higher in the United States than in Haiti is that

How does the United States attempt to compensate losers from lower trade restrictions?

The gains from free trade are enjoyed by a number of people and the costs of free trade are imposed by number of people.

Which of the following statements concerning tariffs is NOT true?

In 2007, European Union (EU) negotiators have offered to cut tariffs for Latin American bananas to avoid "banana wars". What are the effects of a cut in tariffs?

Based on the table below, suppose the world price was $4. The country would

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

Filters