Question 1

Who benefits from imports?

Accepted Answer

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

Question 2

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

Accepted Answer

A) large; small 
B) small; large 
C) small; small 
D) large; large 
E) We can't determine the relative number of people who benefit and lose from free trade. 
A) large; small 
B) small; large 
C) small; small 
D) large; large 
E) We can't determine the relative number of people who benefit and lose from free trade.

Question 3

If Canada imposes a tariff of $1 per imported shirt, the tariff

Accepted Answer

A) benefits Canadian shirt producers. 
B) decreases imports of shirts into Canada. 
C) raises the price of a shirt paid by Canadian consumers. 
D) creates a social loss. 
E) all of the above 
A) benefits Canadian shirt producers. 
B) decreases imports of shirts into Canada. 
C) raises the price of a shirt paid by Canadian consumers. 
D) creates a social loss. 
E) all of the above

Question 4

Rent seeking is one reason why countries choose to

Accepted Answer

A) hire foreign labour. 
B) restrict trade. 
C) export and import the same goods. 
D) work for freer trade. 
E) follow the theory of comparative advantage. 
A) hire foreign labour. 
B) restrict trade. 
C) export and import the same goods. 
D) work for freer trade. 
E) follow the theory of comparative advantage.

Question 5

Which of the following statements is true?

Accepted Answer

A) International trade raises wages in developing countries. 
B) International trade leads to job losses in both import competing industries and exporting industries. 
C) International trade with rich industrial countries forces people in the developing countries to work for lower wages. 
D) Unlike other types of international trade, offshoring does not bring any gains from trade. 
E) All of the above 
A) International trade raises wages in developing countries. 
B) International trade leads to job losses in both import competing industries and exporting industries. 
C) International trade with rich industrial countries forces people in the developing countries to work for lower wages. 
D) Unlike other types of international trade, offshoring does not bring any gains from trade. 
E) All of the above

Question 6

Suppose the country of Mooland imposes tariffs on imported beef from the country of Aqualand.As a result of the tariffs, the

Accepted Answer

A) price of beef in Mooland falls. 
B) price of beef in Mooland does not change. 
C) quantity of beef exported by Mooland increases. 
D) quantity of beef imported by Mooland increases. 
E) quantity of beef imported by Mooland decreases. 
A) price of beef in Mooland falls. 
B) price of beef in Mooland does not change. 
C) quantity of beef exported by Mooland increases. 
D) quantity of beef imported by Mooland increases. 
E) quantity of beef imported by Mooland decreases.

Question 7

Suppose that the world price of eggs is $1 a dozen, Canada does not trade internationally, and the equilibrium price of eggs in Canada is $3 a dozen.Then Canada begins to trade internationally.Canadian farmers produce _______eggs.Canada _______ eggs.

Accepted Answer

A) more; exports 
B) less; imports 
C) less; exports 
D) the same quantity of; imports 
E) more; imports 
A) more; exports 
B) less; imports 
C) less; exports 
D) the same quantity of; imports 
E) more; imports

Question 8

Which of the following is a Canadian service export?

Accepted Answer

A) A Canadian buys a clock made in Switzerland. 
B) A Canadian buys a Canadian computer in Switzerland. 
C) A Canadian buys dinner while travelling in Switzerland. 
D) A Swiss buys a computer made in Canada. 
E) A Swiss buys dinner while travelling in Canada. 
A) A Canadian buys a clock made in Switzerland. 
B) A Canadian buys a Canadian computer in Switzerland. 
C) A Canadian buys dinner while travelling in Switzerland. 
D) A Swiss buys a computer made in Canada. 
E) A Swiss buys dinner while travelling in Canada.

Question 9

Of the groups listed below, which is most likely to lobby for protection?

Accepted Answer

A) producers in the export industry 
B) workers in the export industry 
C) workers in the import industry 
D) consumers in the import industry 
E) all of the above 
A) producers in the export industry 
B) workers in the export industry 
C) workers in the import industry 
D) consumers in the import industry 
E) all of the above

Question 10

If a quota is set at the same quantity of imports that results from a tariff in Country A,

Accepted Answer

A) the quantity consumed in Country A is the same under the quota and under the tariff. 
B) the quantity consumed in Country A is less under the quota than under the tariff. 
C) the quantity consumed in Country A is more under the quota than under the tariff. 
D) the government tariff revenue is greater than the importers' profit from the import quota. 
E) the government tariff revenue is less than the importers' profit from the import quota. 
A) the quantity consumed in Country A is the same under the quota and under the tariff. 
B) the quantity consumed in Country A is less under the quota than under the tariff. 
C) the quantity consumed in Country A is more under the quota than under the tariff. 
D) the government tariff revenue is greater than the importers' profit from the import quota. 
E) the government tariff revenue is less than the importers' profit from the import quota.

Question 11

Which of the following statements concerning tariffs is not true?

Accepted Answer

A) A tariff decreases international trade. 
B) A tariff leaves the price of imports unchanged. 
C) A tariff decreases domestic consumption. 
D) A tariff creates revenue for the government. 
E) A tariff increases domestic production. 
A) A tariff decreases international trade. 
B) A tariff leaves the price of imports unchanged. 
C) A tariff decreases domestic consumption. 
D) A tariff creates revenue for the government. 
E) A tariff increases domestic production.

Question 12

Canada has a comparative advantage in producing hardwood if the Canadian price of hardwood before international trade is _______ the world price.

Accepted Answer

A) at most double 
B) less than 
C) greater than 
D) at least double 
E) equal to 
A) at most double 
B) less than 
C) greater than 
D) at least double 
E) equal to

Question 13

Refer to the table below to answer the following questions.
Table 15.1.2  
-Refer to Table 15.1.2.The table shows a country's demand and supply schedules.At what world price would the country import?

Accepted Answer

A) a price below $8 a unit 
B) any price above $8 a unit 
C) a price of $20 a unit 
D) a price of $10 a unit 
E) at exactly $8 a unit 
A) a price below $8 a unit 
B) any price above $8 a unit 
C) a price of $20 a unit 
D) a price of $10 a unit 
E) at exactly $8 a unit

Question 14

The effects of offshoring from opening up call centres in India are similar to the effects from

Accepted Answer

A) free trade. 
B) voluntary export restraints. 
C) import quota. 
D) tariffs. 
E) export subsidies. 
A) free trade. 
B) voluntary export restraints. 
C) import quota. 
D) tariffs. 
E) export subsidies.

Question 15

Usually the removal of trade barriers affecting a particular good benefits _______ people domestically, each of whom gains a _______.

Accepted Answer

A) many; little 
B) many; lot 
C) a few; lot 
D) a few; little 
E) We can't determine the relative benefits from the removal of trade barriers. 
A) many; little 
B) many; lot 
C) a few; lot 
D) a few; little 
E) We can't determine the relative benefits from the removal of trade barriers.

Question 16

Canada imports cars from Japan.If Canada imposes a tariff on cars imported from Japan, Canadian

Accepted Answer

A) producers will lose and Japanese consumers will gain. 
B) consumers will lose and Japanese producers will gain. 
C) car manufacturers will gain revenue equal to the revenue lost by Japanese car manufacturers. 
D) tariff revenue will equal the loss of Canadian consumers. 
E) consumers will lose and Canadian producers will gain. 
A) producers will lose and Japanese consumers will gain. 
B) consumers will lose and Japanese producers will gain. 
C) car manufacturers will gain revenue equal to the revenue lost by Japanese car manufacturers. 
D) tariff revenue will equal the loss of Canadian consumers. 
E) consumers will lose and Canadian producers will gain.

Question 17

Suppose that the country of Pacifica sold its cars in Atlantica for less than it costs to produce the cars.Pacifica could be accused of

Accepted Answer

A) dumping. 
B) increasing its gains from trade. 
C) avoiding import quotas. 
D) exploiting a comparative advantage. 
E) engaging in learning- by- doing. 
A) dumping. 
B) increasing its gains from trade. 
C) avoiding import quotas. 
D) exploiting a comparative advantage. 
E) engaging in learning- by- doing.

Question 18

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.With the tariff, Canada imports _______ million shirts per year.

Accepted Answer

A) 24 
B) 16 
C) 40 
D) 8 
E) 32 
A) 24 
B) 16 
C) 40 
D) 8 
E) 32

Question 19

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.Canadian widget producers convince the government to protect the domestic industry from cheap imports.If the Canadian government sets an import quota of 8 million widgets, the resulting price of a widget in Canada will be _______ , and domestic production will be _______.

Accepted Answer

A) $9; 28 million 
B) $7; 36 million 
C) $8; 32 million 
D) $6; 40 million 
E) $10; 32 million 
A) $9; 28 million 
B) $7; 36 million 
C) $8; 32 million 
D) $6; 40 million 
E) $10; 32 million

Question 20

Refer to the table below to answer the following questions.
Table 15.1.2  
-Refer to Table 15.1.2.The table shows a country's demand and supply schedules.Suppose the world price is $4 a unit.The country

Accepted Answer

A) exports 20 units. 
B) imports 30 units. 
C) imports 20 units. 
D) imports 10 units. 
E) exports 10 units. 
A) exports 20 units. 
B) imports 30 units. 
C) imports 20 units. 
D) imports 10 units. 
E) exports 10 units.

Who benefits from imports?

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

If Canada imposes a tariff of $1 per imported shirt, the tariff

Rent seeking is one reason why countries choose to

Which of the following statements is true?

Suppose the country of Mooland imposes tariffs on imported beef from the country of Aqualand.As a result of the tariffs, the

Suppose that the world price of eggs is $1 a dozen, Canada does not trade internationally, and the equilibrium price of eggs in Canada is $3 a dozen.Then Canada begins to trade internationally.Canadian farmers produce _eggs.Canada _ eggs.

Which of the following is a Canadian service export?

Of the groups listed below, which is most likely to lobby for protection?

If a quota is set at the same quantity of imports that results from a tariff in Country A,

Which of the following statements concerning tariffs is not true?

Canada has a comparative advantage in producing hardwood if the Canadian price of hardwood before international trade is _______ the world price.

Refer to the table below to answer the following questions. Table 15.1.2 -Refer to Table 15.1.2.The table shows a country's demand and supply schedules.At what world price would the country import?

The effects of offshoring from opening up call centres in India are similar to the effects from

Usually the removal of trade barriers affecting a particular good benefits _ people domestically, each of whom gains a _.

Canada imports cars from Japan.If Canada imposes a tariff on cars imported from Japan, Canadian

Suppose that the country of Pacifica sold its cars in Atlantica for less than it costs to produce the cars.Pacifica could be accused of

Refer to the table below to answer the following questions. Table 15.1.2 -Refer to Table 15.1.2.The table shows a country's demand and supply schedules.Suppose the world price is $4 a unit.The country

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

Who benefits from imports?

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

If Canada imposes a tariff of $1 per imported shirt, the tariff

Rent seeking is one reason why countries choose to

Which of the following statements is true?

Suppose the country of Mooland imposes tariffs on imported beef from the country of Aqualand.As a result of the tariffs, the

Suppose that the world price of eggs is $1 a dozen, Canada does not trade internationally, and the equilibrium price of eggs in Canada is $3 a dozen.Then Canada begins to trade internationally.Canadian farmers produce _______eggs.Canada _______ eggs.

Which of the following is a Canadian service export?

Of the groups listed below, which is most likely to lobby for protection?

If a quota is set at the same quantity of imports that results from a tariff in Country A,

Which of the following statements concerning tariffs is not true?

Canada has a comparative advantage in producing hardwood if the Canadian price of hardwood before international trade is _______ the world price.

Refer to the table below to answer the following questions. Table 15.1.2 -Refer to Table 15.1.2.The table shows a country's demand and supply schedules.At what world price would the country import?

The effects of offshoring from opening up call centres in India are similar to the effects from

Usually the removal of trade barriers affecting a particular good benefits _______ people domestically, each of whom gains a _______.

Canada imports cars from Japan.If Canada imposes a tariff on cars imported from Japan, Canadian

Suppose that the country of Pacifica sold its cars in Atlantica for less than it costs to produce the cars.Pacifica could be accused of

Refer to the table below to answer the following questions. Table 15.1.2 -Refer to Table 15.1.2.The table shows a country's demand and supply schedules.Suppose the world price is $4 a unit.The country

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

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

Suppose that the world price of eggs is $1 a dozen, Canada does not trade internationally, and the equilibrium price of eggs in Canada is $3 a dozen.Then Canada begins to trade internationally.Canadian farmers produce _eggs.Canada _ eggs.

Usually the removal of trade barriers affecting a particular good benefits _ people domestically, each of whom gains a _.