Question 1

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

Accepted Answer

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

Question 2

Refer to the table below to answer the following questions.
  
-Table 15.3.1 shows the Canadian supply of and demand for widgets.Widgets are available on the world market for $7.If the Canadian government imposes a tariff of $1, how many widgets will Canada import?

Accepted Answer

A) 40 million 
B) 24 million 
C) 32 million 
D) 28 million 
E) 16 million 
A) 40 million 
B) 24 million 
C) 32 million 
D) 28 million 
E) 16 million E

Question 3

Refer to the table below to answer the following question.
Table 15.1.3  
-Refer to Table 15.1.3.The table shows a country's demand and supply schedules.At what world price would the country export?

Accepted Answer

A) a price of $6 a unit 
B) any price below $8 
C) a price of $4 a unit 
D) any price above $8 a unit 
E) at only $8 a unit 
A) a price of $6 a unit 
B) any price below $8 
C) a price of $4 a unit 
D) any price above $8 a unit 
E) at only $8 a unit D

Question 4

Canada produces both lumber and wine.Canada exports lumber and imports wine.The rest of the world imports Canadian lumber and exports wine to Canada.When Canada exports lumber to the rest of the world and the rest of the world exports wine to Canada, _______ .

Accepted Answer

A) Canada's lumber producers gain 
B) lumber producers in the rest of the world lose and wine producers in the rest of the world gain 
C) Canada's wine producers lose 
D) all of the above 
E) none of the above 
A) Canada's lumber producers gain 
B) lumber producers in the rest of the world lose and wine producers in the rest of the world gain 
C) Canada's wine producers lose 
D) all of the above 
E) none of the above

Question 5

A key difference between tariffs and import quotas is that

Accepted Answer

A) the government receives revenue with an import quota, but the importer makes a profit with a tariff. 
B) domestic producers gain with a tariff and lose with an import quota. 
C) consumers are hurt with import quotas but not with tariffs. 
D) the government receives revenue with a tariff, but the importer makes a profit with an import quota. 
E) consumers are hurt with tariffs but not with import quotas. 
A) the government receives revenue with an import quota, but the importer makes a profit with a tariff. 
B) domestic producers gain with a tariff and lose with an import quota. 
C) consumers are hurt with import quotas but not with tariffs. 
D) the government receives revenue with a tariff, but the importer makes a profit with an import quota. 
E) consumers are hurt with tariffs but not with import quotas.

Question 6

Canada produces both lumber and wine.Canada exports lumber and imports wine.The rest of the world imports Canadian lumber and exports wine to Canada.Canada has a comparative advantage in producing _______.The rest of the world has a comparative advantage in producing _______.

Accepted Answer

A) wine; wine 
B) wine; lumber 
C) lumber; lumber 
D) a good other than lumber or wine; wine 
E) lumber; wine 
A) wine; wine 
B) wine; lumber 
C) lumber; lumber 
D) a good other than lumber or wine; wine 
E) lumber; wine

Question 7

When an import quota is imposed, the gap between the domestic price and the world price is captured by

Accepted Answer

A) the domestic producers of the good. 
B) consumers in the importing country. 
C) the importers of the good. 
D) foreign exporters. 
E) the government of the importing country. 
A) the domestic producers of the good. 
B) consumers in the importing country. 
C) the importers of the good. 
D) foreign exporters. 
E) the government of the importing country.

Question 8

Economists usually agree with which of the following arguments that favour protectionism?

Accepted Answer

A) the dumping defence 
B) the infant- industry defence 
C) the competition with cheap foreign labour defence 
D) the job protection defence 
E) none of the above.Economists generally agree that arguments in favor of protection are flawed. 
A) the dumping defence 
B) the infant- industry defence 
C) the competition with cheap foreign labour defence 
D) the job protection defence 
E) none of the above.Economists generally agree that arguments in favor of protection are flawed.

Question 9

Refer to the figure below to answer the following questions.
   The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve.world price is $20 per shirt.Canada imposes a tariff on imported shirts of $4 per shirt.
Figure 15.3.1
-Refer to Figure 15.3.1.The tariff _______ Canada's imports of shirts by _______ million shirts per year.

Accepted Answer

A) increases; 16 
B) increases; 8 
C) increases; 4 
D) decreases; 8 
E) decreases; 16 
A) increases; 16 
B) increases; 8 
C) increases; 4 
D) decreases; 8 
E) decreases; 16

Question 10

_______ specifies the maximum amount of a good that may be imported in a given period of time.

Accepted Answer

A) An import quota 
B) An import subsidy 
C) An import restriction 
D) A legislative restriction 
E) A trade restriction 
A) An import quota 
B) An import subsidy 
C) An import restriction 
D) A legislative restriction 
E) A trade restriction

Question 11

Choose the correct statement.

Accepted Answer

A) Exports include goods and services. 
B) Exports include services but not goods. 
C) Imports include goods but not services. 
D) Imports include services but not goods. 
E) Exports include goods but not services. 
A) Exports include goods and services. 
B) Exports include services but not goods. 
C) Imports include goods but not services. 
D) Imports include services but not goods. 
E) Exports include goods but not services.

Question 12

When the Canadian government imposes a tariff,

Accepted Answer

A) Canadian producers lose. 
B) Canadian consumers gain and Canadian producers lose, and the gain exceeds the loss. 
C) a social loss occurs because increased domestic production could have been obtained at a lower cost as an import. 
D) the tariff revenue earned by the government is a social loss. 
E) A and B are both correct. 
A) Canadian producers lose. 
B) Canadian consumers gain and Canadian producers lose, and the gain exceeds the loss. 
C) a social loss occurs because increased domestic production could have been obtained at a lower cost as an import. 
D) the tariff revenue earned by the government is a social loss. 
E) A and B are both correct.

Question 13

Consider a country that sells some of its goods as exports.Who does not benefit?

Accepted Answer

A) domestic consumers 
B) workers in the industry 
C) domestic producers 
D) foreign consumers 
E) Everyone benefits. 
A) domestic consumers 
B) workers in the industry 
C) domestic producers 
D) foreign consumers 
E) Everyone benefits.

Question 14

The winners from a tariff on imports are

Accepted Answer

A) domestic producers and government. 
B) government only. 
C) domestic producers only. 
D) domestic consumers, domestic producers, and government. 
E) domestic consumers only. 
A) domestic producers and government. 
B) government only. 
C) domestic producers only. 
D) domestic consumers, domestic producers, and government. 
E) domestic consumers only.

Question 15

Use the information below to answer the following questions.
Fact 15.3.1
Before 1995, trade between Canada and Mexico was subject to tariffs.In 1995, Mexico joined NAFTA and all Canadian and M tariffs have gradually been removed.
-Refer to Fact 15.3.1.With the removal of the tariffs, the quantity of Canadian imports from Mexico _______ and the quantity of Canadian exports to Mexico _______.

Accepted Answer

A) increases; decreases 
B) increases; increases 
C) decreases; decreases 
D) increases; does not change 
E) decreases; increases 
A) increases; decreases 
B) increases; increases 
C) decreases; decreases 
D) increases; does not change 
E) decreases; increases

Question 16

In one year, Brazil exported more than 1.8 billion kilograms of coffee to the rest of the world.We can conclude that

Accepted Answer

A) the rest of the world has an absolute advantage in coffee production. 
B) the rest of the world has a comparative advantage in coffee production. 
C) Brazil has comparative advantage in coffee production. 
D) Brazil's government has placed a tariff on coffee. 
E) Brazil has an absolute advantage in coffee production. 
A) the rest of the world has an absolute advantage in coffee production. 
B) the rest of the world has a comparative advantage in coffee production. 
C) Brazil has comparative advantage in coffee production. 
D) Brazil's government has placed a tariff on coffee. 
E) Brazil has an absolute advantage in coffee production.

Question 17

The argument that protection

Accepted Answer

A) penalizes poor environmental standards is true. 
B) allows us to compete with cheap foreign wages is true. 
C) prevents rich countries from exploiting poor countries is true. 
D) is necessary for infant industries is true. 
E) saves jobs is flawed. 
A) penalizes poor environmental standards is true. 
B) allows us to compete with cheap foreign wages is true. 
C) prevents rich countries from exploiting poor countries is true. 
D) is necessary for infant industries is true. 
E) saves jobs is flawed.

Question 18

Compared to the situation before international trade, after Canada imports a good, production in Canada _______ and consumption in Canada _______.

Accepted Answer

A) does not change; increases 
B) decreases; increases 
C) increases; decreases 
D) decreases; decreases 
E) increases; increases 
A) does not change; increases 
B) decreases; increases 
C) increases; decreases 
D) decreases; decreases 
E) increases; increases

Question 19

Refer to the figure below to answer the following questions.
   The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve.The world price is $20 per shirt.
Figure 15.1.1
-In Figure 15.1.1, with international trade Canada _______million shirts per year.

Accepted Answer

A) exports 16 
B) imports 32 
C) imports 16 
D) imports 48 
E) exports 32 
A) exports 16 
B) imports 32 
C) imports 16 
D) imports 48 
E) exports 32

Question 20

Dumping occurs when a foreign firm

Accepted Answer

A) sells inferior output to foreigners. 
B) disposes of waste material internationally. 
C) sells its output at a lower price in a foreign country than in the country where it produces the good. 
D) sells its exports at a lower price than its cost of production. 
E) pollutes international waters. 
A) sells inferior output to foreigners. 
B) disposes of waste material internationally. 
C) sells its output at a lower price in a foreign country than in the country where it produces the good. 
D) sells its exports at a lower price than its cost of production. 
E) pollutes international waters.

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

Refer to the table below to answer the following questions. -Table 15.3.1 shows the Canadian supply of and demand for widgets.Widgets are available on the world market for $7.If the Canadian government imposes a tariff of $1, how many widgets will Canada import?

Refer to the table below to answer the following question. Table 15.1.3 -Refer to Table 15.1.3.The table shows a country's demand and supply schedules.At what world price would the country export?

Canada produces both lumber and wine.Canada exports lumber and imports wine.The rest of the world imports Canadian lumber and exports wine to Canada.When Canada exports lumber to the rest of the world and the rest of the world exports wine to Canada, _______ .

A key difference between tariffs and import quotas is that

Canada produces both lumber and wine.Canada exports lumber and imports wine.The rest of the world imports Canadian lumber and exports wine to Canada.Canada has a comparative advantage in producing _.The rest of the world has a comparative advantage in producing _.

When an import quota is imposed, the gap between the domestic price and the world price is captured by

Economists usually agree with which of the following arguments that favour protectionism?

_______ specifies the maximum amount of a good that may be imported in a given period of time.

Choose the correct statement.

When the Canadian government imposes a tariff,

Consider a country that sells some of its goods as exports.Who does not benefit?

The winners from a tariff on imports are

In one year, Brazil exported more than 1.8 billion kilograms of coffee to the rest of the world.We can conclude that

The argument that protection

Compared to the situation before international trade, after Canada imports a good, production in Canada _ and consumption in Canada _.

Dumping occurs when a foreign firm

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

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

Filters

Exam 15: International Trade Policy

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

Refer to the table below to answer the following questions. -Table 15.3.1 shows the Canadian supply of and demand for widgets.Widgets are available on the world market for $7.If the Canadian government imposes a tariff of $1, how many widgets will Canada import?

Refer to the table below to answer the following question. Table 15.1.3 -Refer to Table 15.1.3.The table shows a country's demand and supply schedules.At what world price would the country export?

Canada produces both lumber and wine.Canada exports lumber and imports wine.The rest of the world imports Canadian lumber and exports wine to Canada.When Canada exports lumber to the rest of the world and the rest of the world exports wine to Canada, _______ .

A key difference between tariffs and import quotas is that

Canada produces both lumber and wine.Canada exports lumber and imports wine.The rest of the world imports Canadian lumber and exports wine to Canada.Canada has a comparative advantage in producing _______.The rest of the world has a comparative advantage in producing _______.

When an import quota is imposed, the gap between the domestic price and the world price is captured by

Economists usually agree with which of the following arguments that favour protectionism?

_______ specifies the maximum amount of a good that may be imported in a given period of time.

Choose the correct statement.

When the Canadian government imposes a tariff,

Consider a country that sells some of its goods as exports.Who does not benefit?

The winners from a tariff on imports are

In one year, Brazil exported more than 1.8 billion kilograms of coffee to the rest of the world.We can conclude that

The argument that protection

Compared to the situation before international trade, after Canada imports a good, production in Canada _______ and consumption in Canada _______.

Dumping occurs when a foreign firm

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

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

Filters

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

Canada produces both lumber and wine.Canada exports lumber and imports wine.The rest of the world imports Canadian lumber and exports wine to Canada.Canada has a comparative advantage in producing _.The rest of the world has a comparative advantage in producing _.

Compared to the situation before international trade, after Canada imports a good, production in Canada _ and consumption in Canada _.