Question 1

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

Accepted Answer

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

Question 2

Refer to the table below to answer the following questions.
Table 15.1.1  
-Table 15.1.1 shows Glazeland's doughnut market before international trade.Glazeland opens up to international trade.If the world price is $0.60 a doughnut, then Glazeland will produce _______ doughnuts and will _______ doughnuts.

Accepted Answer

A) 5 million; export 3 million 
B) 4 million; import 1 million 
C) 4 million; export 1 million 
D) 2 million; import 3 million 
E) 5 million; import 3 million 
A) 5 million; export 3 million 
B) 4 million; import 1 million 
C) 4 million; export 1 million 
D) 2 million; import 3 million 
E) 5 million; import 3 million

Question 3

Choose the statement that is incorrect.

Accepted Answer

A) The costs from offshore outsourcing outweigh the gains. 
B) Gains from trade do not bring gains for every single person. 
C) Offshore outsourcing brings gains from trade identical to those of any other type of trade. 
D) Canadians, on average, gain from offshore outsourcing. 
E) The losers from offshore outsourcing are those who have invested in the human capital to do a specific job that has now gone offshore. 
A) The costs from offshore outsourcing outweigh the gains. 
B) Gains from trade do not bring gains for every single person. 
C) Offshore outsourcing brings gains from trade identical to those of any other type of trade. 
D) Canadians, on average, gain from offshore outsourcing. 
E) The losers from offshore outsourcing are those who have invested in the human capital to do a specific job that has now gone offshore.

Question 4

Two reasons that explain why international trade in 2018 remained restricted is that restricted international trade

Accepted Answer

A) prevents developed countries from exploiting third world countries and saves jobs in those countries. 
B) brings diversity to the whole economy and penalizes countries that have lax environmental standards. 
C) brings diversity and stability to the whole economy and saves jobs in developing countries. 
D) saves jobs and penalizes developing countries that have lax environmental standards. 
E) benefits domestic producers of import- competing goods and services and generates tariff revenue in developing countries. 
A) prevents developed countries from exploiting third world countries and saves jobs in those countries. 
B) brings diversity to the whole economy and penalizes countries that have lax environmental standards. 
C) brings diversity and stability to the whole economy and saves jobs in developing countries. 
D) saves jobs and penalizes developing countries that have lax environmental standards. 
E) benefits domestic producers of import- competing goods and services and generates tariff revenue in developing countries.

Question 5

If Canada imposes a tariff on imported steel, the tariff

Accepted Answer

A) raises the Canadian price of imported steel. 
B) increases the total Canadian consumption of steel. 
C) decreases the Canadian production of steel. 
D) decreases employment in the Canadian steel industry. 
E) all of the above 
A) raises the Canadian price of imported steel. 
B) increases the total Canadian consumption of steel. 
C) decreases the Canadian production of steel. 
D) decreases employment in the Canadian steel industry. 
E) all of the above

Question 6

Among the following, the domestic government gains the most revenue when it

Accepted Answer

A) imposes a tariff. 
B) imposes an import quota. 
C) increases the demand for a domestically- produced good. 
D) encourages freer trade. 
E) eliminates an import quota. 
A) imposes a tariff. 
B) imposes an import quota. 
C) increases the demand for a domestically- produced good. 
D) encourages freer trade. 
E) eliminates an import quota.

Question 7

Canada has a comparative advantage in producing airplanes if

Accepted Answer

A) it can produce a larger quantity than another country. 
B) it can produce them at a lower dollar cost than another country. 
C) it can produce them at a higher opportunity cost than another country. 
D) it can produce them at a lower opportunity cost than another country. 
E) it has a larger quantity of skilled workers than another country. 
A) it can produce a larger quantity than another country. 
B) it can produce them at a lower dollar cost than another country. 
C) it can produce them at a higher opportunity cost than another country. 
D) it can produce them at a lower opportunity cost than another country. 
E) it has a larger quantity of skilled workers than another country.

Question 8

Choose the statement that is incorrect.

Accepted Answer

A) By trading with poor countries, we increase the demand for the goods that these countries produce and increase the demand for their labour. 
B) Wage differences drive international trade. 
C) High- wage workers have high productivity. 
D) International trade can improve the opportunities of people in developing countries and increase their incomes. 
E) Free trade creates some jobs and destroys other jobs. 
A) By trading with poor countries, we increase the demand for the goods that these countries produce and increase the demand for their labour. 
B) Wage differences drive international trade. 
C) High- wage workers have high productivity. 
D) International trade can improve the opportunities of people in developing countries and increase their incomes. 
E) Free trade creates some jobs and destroys other jobs.

Question 9

When a firm implements offshore outsourcing, consumers in Canada _______, workers in Canada in the industry that is being outsourced _______ and workers in the foreign country in the industry that is being outsourced _______.

Accepted Answer

A) lose; lose; gain 
B) lose; gain; lose 
C) gain; gain; gain 
D) gain; lose; gain 
E) gain; lose; lose 
A) lose; lose; gain 
B) lose; gain; lose 
C) gain; gain; gain 
D) gain; lose; gain 
E) gain; lose; lose

Question 10

An import quota directly restricts _______ and is designed to protect domestic _______.

Accepted Answer

A) exports; producers only 
B) imports; producers and consumers 
C) imports; producers only 
D) imports; consumers only 
E) exports; consumers only 
A) exports; producers only 
B) imports; producers and consumers 
C) imports; producers only 
D) imports; consumers only 
E) exports; consumers only

Question 11

A country opens up to trade.In an import industry,

Accepted Answer

A) domestic producers lose and the government gains. 
B) the government loses and domestic consumers gain. 
C) domestic producers lose and domestic consumers gain. 
D) domestic consumers lose and domestic producers gain. 
E) none of the above 
A) domestic producers lose and the government gains. 
B) the government loses and domestic consumers gain. 
C) domestic producers lose and domestic consumers gain. 
D) domestic consumers lose and domestic producers gain. 
E) none of the above

Question 12

A Canadian tariff imposed on items that can be produced more cheaply abroad

Accepted Answer

A) equalizes the cost of production between Canada and foreign producers. 
B) benefits Canadians by making these goods cheaper. 
C) creates a social loss. 
D) makes the goods more expensive in foreign markets. 
E) all of the above 
A) equalizes the cost of production between Canada and foreign producers. 
B) benefits Canadians by making these goods cheaper. 
C) creates a social loss. 
D) makes the goods more expensive in foreign markets. 
E) all of the above

Question 13

Which of the following is an explanation for the existence of trade restrictions?

Accepted Answer

A) Tariffs generate revenue for the government 
B) Rent seeking 
C) Inefficient quotas 
D) both A and B 
E) both A and C 
A) Tariffs generate revenue for the government 
B) Rent seeking 
C) Inefficient quotas 
D) both A and B 
E) both A and C

Question 14

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.The price of eggs in Canada _______.Canadian consumers buy _______ eggs.

Accepted Answer

A) rises; more 
B) falls; more 
C) rises; the same quantity of 
D) falls; less 
E) rises; less 
A) rises; more 
B) falls; more 
C) rises; the same quantity of 
D) falls; less 
E) rises; less

Question 15

Goods and services that we buy from other countries are our

Accepted Answer

A) exports. 
B) terms of trade. 
C) comparative goods and services. 
D) balance of payments. 
E) imports. 
A) exports. 
B) terms of trade. 
C) comparative goods and services. 
D) balance of payments. 
E) imports.

Question 16

The goods and services we sell to people in other countries are our

Accepted Answer

A) exports. 
B) quotas. 
C) imports. 
D) tariffs. 
E) investment goods and services. 
A) exports. 
B) quotas. 
C) imports. 
D) tariffs. 
E) investment goods and services.

Question 17

If Canada imposes a tariff on imported steel, the tariff

Accepted Answer

A) raises the Canadian price of imported steel. 
B) increases the total Canadian consumption of steel. 
C) decreases Canadian production of steel. 
D) decreases employment in the Canadian steel industry. 
E) Both B and D are correct. 
A) raises the Canadian price of imported steel. 
B) increases the total Canadian consumption of steel. 
C) decreases Canadian production of steel. 
D) decreases employment in the Canadian steel industry. 
E) Both B and D are correct.

Question 18

When a tariff is imposed, the gap between the domestic price and the world price is captured by

Accepted Answer

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

Question 19

When a firms "dumps" some of its output in another country, it

Accepted Answer

A) is specializing according to comparative advantage. 
B) increases the total level of employment in the importing country. 
C) creates an environmental hazard in the receiving country. 
D) creates for itself an absolute advantage. 
E) sells its output abroad at a price lower than it costs to produce the output. 
A) is specializing according to comparative advantage. 
B) increases the total level of employment in the importing country. 
C) creates an environmental hazard in the receiving country. 
D) creates for itself an absolute advantage. 
E) sells its output abroad at a price lower than it costs to produce the output.

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

Refer to the table below to answer the following questions. Table 15.1.1 -Table 15.1.1 shows Glazeland's doughnut market before international trade.Glazeland opens up to international trade.If the world price is $0.60 a doughnut, then Glazeland will produce _ doughnuts and will _ doughnuts.

Choose the statement that is incorrect.

Two reasons that explain why international trade in 2018 remained restricted is that restricted international trade

If Canada imposes a tariff on imported steel, the tariff

Among the following, the domestic government gains the most revenue when it

Canada has a comparative advantage in producing airplanes if

Choose the statement that is incorrect.

When a firm implements offshore outsourcing, consumers in Canada ___, workers in Canada in the industry that is being outsourced _ and workers in the foreign country in the industry that is being outsourced _____.

An import quota directly restricts _ and is designed to protect domestic _.

A country opens up to trade.In an import industry,

A Canadian tariff imposed on items that can be produced more cheaply abroad

Which of the following is an explanation for the existence of trade restrictions?

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.The price of eggs in Canada _.Canadian consumers buy _ eggs.

Goods and services that we buy from other countries are our

The goods and services we sell to people in other countries are our

If Canada imposes a tariff on imported steel, the tariff

When a tariff is imposed, the gap between the domestic price and the world price is captured by

When a firms "dumps" some of its output in another country, it

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

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

Choose the statement that is incorrect.

Two reasons that explain why international trade in 2018 remained restricted is that restricted international trade

If Canada imposes a tariff on imported steel, the tariff

Among the following, the domestic government gains the most revenue when it

Canada has a comparative advantage in producing airplanes if

Choose the statement that is incorrect.

When a firm implements offshore outsourcing, consumers in Canada _______, workers in Canada in the industry that is being outsourced _______ and workers in the foreign country in the industry that is being outsourced _______.

An import quota directly restricts _______ and is designed to protect domestic _______.

A country opens up to trade.In an import industry,

A Canadian tariff imposed on items that can be produced more cheaply abroad

Which of the following is an explanation for the existence of trade restrictions?

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.The price of eggs in Canada _______.Canadian consumers buy _______ eggs.

Goods and services that we buy from other countries are our

The goods and services we sell to people in other countries are our

If Canada imposes a tariff on imported steel, the tariff

When a tariff is imposed, the gap between the domestic price and the world price is captured by

When a firms "dumps" some of its output in another country, it

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

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

When a firm implements offshore outsourcing, consumers in Canada ___, workers in Canada in the industry that is being outsourced _ and workers in the foreign country in the industry that is being outsourced _____.

An import quota directly restricts _ and is designed to protect domestic _.

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.The price of eggs in Canada _.Canadian consumers buy _ eggs.