Question 1

Using calculations of the cost to Americans per job saved in protected industries, it can be concluded that

Accepted Answer

A)  import quotas are an efficient way to redistribute income. 
B)  each job saved is worth more than the cost imposed on consumers per job saved. 
C)  tariffs are an efficient way to redistribute income to disadvantaged groups. 
D)  each job saved is worth less than the cost imposed on consumers per job saved. 
A)  import quotas are an efficient way to redistribute income. 
B)  each job saved is worth more than the cost imposed on consumers per job saved. 
C)  tariffs are an efficient way to redistribute income to disadvantaged groups. 
D)  each job saved is worth less than the cost imposed on consumers per job saved.

Question 2

Which of the following statements is true?

Accepted Answer

A)  Dumping occurs when a foreign firm sells its exports at a higher price than its cost of production. 
B)  Dumping is illegal under the rules of the WTO. 
C)  Both statements are true. 
D)  Neither of the statements is true. 
A)  Dumping occurs when a foreign firm sells its exports at a higher price than its cost of production. 
B)  Dumping is illegal under the rules of the WTO. 
C)  Both statements are true. 
D)  Neither of the statements is true.

Question 3

Based on the table below, at what world price would the country import?

Accepted Answer

A)  a price below $8 
B)  at exactly $8 
C)  it is impossible to say 
D)  a price above $8 
A)  a price below $8 
B)  at exactly $8 
C)  it is impossible to say 
D)  a price above $8

Question 4

A tariff

Accepted Answer

A)  encourages worldwide specialization according to the principle of comparative advantage. 
B)  is a tax imposed on exported goods. 
C)  is a tax imposed on imported goods. 
D)  has no effect on prices paid by domestic consumers even though it increases the revenue collected by domestic producers. 
A)  encourages worldwide specialization according to the principle of comparative advantage. 
B)  is a tax imposed on exported goods. 
C)  is a tax imposed on imported goods. 
D)  has no effect on prices paid by domestic consumers even though it increases the revenue collected by domestic producers.

Question 5

Since 1930, tariff levels in the United States have

Accepted Answer

A)  generally declined. 
B)  increased during expansions. 
C)  steadily risen. 
D)  decreased during recessions. 
A)  generally declined. 
B)  increased during expansions. 
C)  steadily risen. 
D)  decreased during recessions.

Question 6

The Smoot- Hawley Act

Accepted Answer

A)  recognized Congress's right to deny trade authorization powers to the President. 
B)  made most tariffs illegal. 
C)  gave the President the right to broker trade deals with other nations. 
D)  greatly raised tariffs. 
A)  recognized Congress's right to deny trade authorization powers to the President. 
B)  made most tariffs illegal. 
C)  gave the President the right to broker trade deals with other nations. 
D)  greatly raised tariffs.

Question 7

A major purpose of tariffs is to

Accepted Answer

A)  discourage exports. 
B)  discourage imports. 
C)  encourage exports. 
D)  encourage imports. 
A)  discourage exports. 
B)  discourage imports. 
C)  encourage exports. 
D)  encourage imports.

Question 8

During the first 6 months of 2008, the United States imported more than 1.6 billion pounds of coffee. Suppose the United States is considering placing trade restrictions on the importation of coffee. What would be a potential consequence of such a trade restriction?

Accepted Answer

A)  The quantity of coffee imported into the United States would increase. 
B)  The U.S. price of coffee would increase. 
C)  If the United States instead imposed a quota on coffee imports, government tax revenue would increase by more than with a tariff. 
D)  U.S. consumers would drink more coffee. 
A)  The quantity of coffee imported into the United States would increase. 
B)  The U.S. price of coffee would increase. 
C)  If the United States instead imposed a quota on coffee imports, government tax revenue would increase by more than with a tariff. 
D)  U.S. consumers would drink more coffee.

Question 9

In industrial countries, there is more reliance on , as opposed to for government revenue.

Accepted Answer

A)  tariffs; quotas 
B)  quotas; tariffs 
C)  tariffs; tax collection 
D)  tax collection; tariffs 
A)  tariffs; quotas 
B)  quotas; tariffs 
C)  tariffs; tax collection 
D)  tax collection; tariffs

Question 10

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supp The world price is $20 per shirt.
-In the figure above, with international trade Americans buy million shirts per year.

Accepted Answer

A)  24 
B)  16 
C)  48 
D)  32 
A)  24 
B)  16 
C)  48 
D)  32

Question 11

A tariff imposed by the United States on Japanese cars the price of cars in the United States and the quantity of Japanese cars imported into the United States.

Accepted Answer

A)  lowers; increases 
B)  lowers; decreases 
C)  raises; decreases 
D)  raises; increases 
A)  lowers; increases 
B)  lowers; decreases 
C)  raises; decreases 
D)  raises; increases

Question 12

Tariffs and import quotas both result in

Accepted Answer

A)  lower levels of imports. 
B)  lower levels of domestic production. 
C)  the domestic government gaining revenue. 
D)  higher levels of domestic consumption. 
A)  lower levels of imports. 
B)  lower levels of domestic production. 
C)  the domestic government gaining revenue. 
D)  higher levels of domestic consumption.

Question 13

Reducing a tariff will _ the domestic production of the good and the total domestic consumption of the good.

Accepted Answer

A)  increase; decrease 
B)  decrease; increase 
C)  decrease; decrease 
D)  increase; increase 
A)  increase; decrease 
B)  decrease; increase 
C)  decrease; decrease 
D)  increase; increase

Question 14

Import quotas

Accepted Answer

A)  set the maximum number of units of a good that can be imported. 
B)  are not used by the United States. 
C)  set the minimum percentage of the value of a product that must consist of imported components. 
D)  are the same as tariffs. 
A)  set the maximum number of units of a good that can be imported. 
B)  are not used by the United States. 
C)  set the minimum percentage of the value of a product that must consist of imported components. 
D)  are the same as tariffs.

Question 15

The average tariff rate imposed by the United States on imported goods

Accepted Answer

A)  peaked in 1990. 
B)  has generally increased over the past 60 years. 
C)  has generally decreased over the past 60 years. 
D)  peaked in 1980. 
A)  peaked in 1990. 
B)  has generally increased over the past 60 years. 
C)  has generally decreased over the past 60 years. 
D)  peaked in 1980.

Question 16

An import quota is

Accepted Answer

A)  a tariff that is a fixed percentage of the price of a good. 
B)  an agreed upon price for a good to be imported at a specified future date. 
C)  a tariff that is a fixed dollar amount per unit of a good. 
D)  a restriction that specifies the maximum amount of a good that may be imported. 
A)  a tariff that is a fixed percentage of the price of a good. 
B)  an agreed upon price for a good to be imported at a specified future date. 
C)  a tariff that is a fixed dollar amount per unit of a good. 
D)  a restriction that specifies the maximum amount of a good that may be imported.

Question 17

The fundamental force that generates international trade is

Accepted Answer

A)  absolute advantage. 
B)  comparative advantage. 
C)  law of increasing costs. 
D)  law of diminishing returns. 
A)  absolute advantage. 
B)  comparative advantage. 
C)  law of increasing costs. 
D)  law of diminishing returns.

Question 18

A tariff hurts

Accepted Answer

A)  domestic producers who can't compete with cheaper imports. 
B)  consumers who will pay more for the imported good. 
C)  the government by decreasing its revenue. 
D)  All of the above answers are correct. 
A)  domestic producers who can't compete with cheaper imports. 
B)  consumers who will pay more for the imported good. 
C)  the government by decreasing its revenue. 
D)  All of the above answers are correct.

Question 19

Between August 2007 and July 2008, Brazil exported more than 3.5 billion pounds of coffee to the rest of the world. Because of this, we know definitively that:

Accepted Answer

A)  Brazil has comparative advantage in coffee production 
B)  The rest of the world has comparative advantage in coffee production 
C)  Brazil has absolute advantage in coffee production 
D)  The rest of the world has absolute advantage in coffee production 
A)  Brazil has comparative advantage in coffee production 
B)  The rest of the world has comparative advantage in coffee production 
C)  Brazil has absolute advantage in coffee production 
D)  The rest of the world has absolute advantage in coffee production

Question 20

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supp The world price is $20 per shirt.
-In the figure above, with international trade million shirts per year are produced in the United States.

Accepted Answer

A)  48 
B)  20 
C)  16 
D)  32 
A)  48 
B)  20 
C)  16 
D)  32

Using calculations of the cost to Americans per job saved in protected industries, it can be concluded that

Which of the following statements is true?

Based on the table below, at what world price would the country import?

A tariff

Since 1930, tariff levels in the United States have

The Smoot- Hawley Act

A major purpose of tariffs is to

During the first 6 months of 2008, the United States imported more than 1.6 billion pounds of coffee. Suppose the United States is considering placing trade restrictions on the importation of coffee. What would be a potential consequence of such a trade restriction?

In industrial countries, there is more reliance on , as opposed to for government revenue.

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supp The world price is $20 per shirt. -In the figure above, with international trade Americans buy million shirts per year.

A tariff imposed by the United States on Japanese cars the price of cars in the United States and the quantity of Japanese cars imported into the United States.

Tariffs and import quotas both result in

Reducing a tariff will _ the domestic production of the good and the total domestic consumption of the good.

Import quotas

The average tariff rate imposed by the United States on imported goods

An import quota is

The fundamental force that generates international trade is

A tariff hurts

Between August 2007 and July 2008, Brazil exported more than 3.5 billion pounds of coffee to the rest of the world. Because of this, we know definitively that:

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supp The world price is $20 per shirt. -In the figure above, with international trade million shirts per year are produced in the United States.

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

Using calculations of the cost to Americans per job saved in protected industries, it can be concluded that

Which of the following statements is true?

Based on the table below, at what world price would the country import?

A tariff

Since 1930, tariff levels in the United States have

The Smoot- Hawley Act

A major purpose of tariffs is to

During the first 6 months of 2008, the United States imported more than 1.6 billion pounds of coffee. Suppose the United States is considering placing trade restrictions on the importation of coffee. What would be a potential consequence of such a trade restriction?

In industrial countries, there is more reliance on , as opposed to for government revenue.

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supp The world price is $20 per shirt. -In the figure above, with international trade Americans buy million shirts per year.

A tariff imposed by the United States on Japanese cars the price of cars in the United States and the quantity of Japanese cars imported into the United States.

Tariffs and import quotas both result in

Reducing a tariff will _ the domestic production of the good and the total domestic consumption of the good.

Import quotas

The average tariff rate imposed by the United States on imported goods

An import quota is

The fundamental force that generates international trade is

A tariff hurts

Between August 2007 and July 2008, Brazil exported more than 3.5 billion pounds of coffee to the rest of the world. Because of this, we know definitively that:

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supp The world price is $20 per shirt. -In the figure above, with international trade million shirts per year are produced in the United States.

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