Question 1

If Canadian government were to impose a quota on wristwatches imported from Switzerland, the:

Accepted Answer

A) Canada would reduce its export of watches. 
B) prices of watches in Switzerland would rise. 
C) price of watches in Canada would remain the same, but the quantity will fall. 
D) total quantity of watches (domestically produced and imported) purchased would decline. 
A) Canada would reduce its export of watches. 
B) prices of watches in Switzerland would rise. 
C) price of watches in Canada would remain the same, but the quantity will fall. 
D) total quantity of watches (domestically produced and imported) purchased would decline.

Question 2

Refer to the tables below.Which of the following would be feasible terms for trade between Latalia and Trombonia? Production possibilities tables for two countries, Latalia and Trombonia: Latalia's production possibilities:   Trombonia's production possibilities:

Accepted Answer

A) 1 ton of beans for 1 ton of pork 
B) 2 tons of beans for 1 ton of pork 
C) 6 tons of beans for 1 ton of pork 
D) 4 tons of beans for 1 ton of pork 
A) 1 ton of beans for 1 ton of pork 
B) 2 tons of beans for 1 ton of pork 
C) 6 tons of beans for 1 ton of pork 
D) 4 tons of beans for 1 ton of pork

Question 3

As of 2012, the Euro Zone consists of the 17 members of the EU that use the Euro as a common currency.

Accepted Answer

A) True 
 B)False

Question 4

An import quota:

Accepted Answer

A) generates revenues for foreign producers. 
B) generates revenues for foreign governments. 
C) generates revenues for domestic producers. 
D) generates revenues for the domestic government. 
A) generates revenues for foreign producers. 
B) generates revenues for foreign governments. 
C) generates revenues for domestic producers. 
D) generates revenues for the domestic government.

Question 5

Refer to the above diagram, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product.With a PcPt per unit tariff, the quantities sold by foreign and domestic producers respectively will be:

Accepted Answer

A) xz and x. 
B) xv and xz. 
C) x and xz. 
D) wy and w. 
A) xz and x. 
B) xv and xz. 
C) x and xz. 
D) wy and w.

Question 6

Refer to the above diagram, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product.Sd + Q is the product supply curve after an import quota is imposed.The size of the import quota:

Accepted Answer

A) is vz. 
B) is vy. 
C) is wy. 
D) cannot be determined. 
A) is vz. 
B) is vy. 
C) is wy. 
D) cannot be determined.

Question 7

Which of the following countries had the lowest percentage of exports as a percentage of GDP in 2015?.Use Image 17.2 Global Perspective.

Accepted Answer

A) Belgium 
B) Netherlands 
C) Germany 
D) Canada 
A) Belgium 
B) Netherlands 
C) Germany 
D) Canada

Question 8

The provisions of the Uruguay Round of GATT were phased in through:

Accepted Answer

A) 2005. 
B) 1999. 
C) 1994. 
D) 2018. 
A) 2005. 
B) 1999. 
C) 1994. 
D) 2018.

Question 9

The long-run effect of tariffs is:

Accepted Answer

A) an increase in domestic employment. 
B) an increase in export businesses. 
C) a reallocation of domestic workers from export industries to protected domestic industries. 
D) a reallocation of consumer spending to imported products over domestically-produced products. 
A) an increase in domestic employment. 
B) an increase in export businesses. 
C) a reallocation of domestic workers from export industries to protected domestic industries. 
D) a reallocation of consumer spending to imported products over domestically-produced products.

Question 10

The following shows the Production possibilities tables for two countries, Latalia and Trombonia:   Refer to the above tables.If these two nations specialize on the basis of comparative advantage:

Accepted Answer

A) Trombonia will produce beans and Latalia will produce pork. 
B) Trombonia will produce both beans and pork. 
C) Latalia will produce both beans and pork and Trombonia will produce neither. 
D) Latalia will produce beans and Trombonia will produce pork. 
A) Trombonia will produce beans and Latalia will produce pork. 
B) Trombonia will produce both beans and pork. 
C) Latalia will produce both beans and pork and Trombonia will produce neither. 
D) Latalia will produce beans and Trombonia will produce pork.

Question 11

The following table is domestic supply and demand schedules for a product.Suppose that the world price of the product is $1.   Refer to the above data.With a $1 dollar per unit tariff, price and total quantity sold will be:

Accepted Answer

A) $3 and 7 units. 
B) $5 and 2 units. 
C) $7 and 3 units. 
D) $2 and 11 units. 
A) $3 and 7 units. 
B) $5 and 2 units. 
C) $7 and 3 units. 
D) $2 and 11 units.

Question 12

Which of the following is an example of a labour-intensive commodity?

Accepted Answer

A) clothing 
B) beer 
C) Aspirin tablets 
D) gasoline 
A) clothing 
B) beer 
C) Aspirin tablets 
D) gasoline

Question 13

Consider two countries which trade with each other.As these countries expand their production according to their comparative advantage, most probably they will experience:

Accepted Answer

A) constant costs. 
B) high tariffs. 
C) decreasing costs. 
D) increasing costs. 
A) constant costs. 
B) high tariffs. 
C) decreasing costs. 
D) increasing costs.

Question 14

The major difference between a tariff and a quota on an imported product is that a tariff produces revenue for the government.

Accepted Answer

A) True 
 B)False

Question 15

Assume that by devoting all its resources to the production of X, nation Alpha can produce 40 units of X.By devoting all its resources to Y, Alpha can produce 60Y.Comparable figures for nation Beta are, 60X and 40Y.Refer to the above information.Alpha would prefer terms of trade at, or close to, 1X = 2/3 Y.

Accepted Answer

A) True 
 B)False

Question 16

The North American Free Trade Agreement (NAFTA):

Accepted Answer

A) resulted from GATT negotiations at the Uruguay Round. 
B) permits the European Union to export goods tariff free to North America. 
C) has eliminated most of the tariffs and other trade barriers among Canada, Mexico, and the United States. 
D) will reduce American exports to Mexico. 
A) resulted from GATT negotiations at the Uruguay Round. 
B) permits the European Union to export goods tariff free to North America. 
C) has eliminated most of the tariffs and other trade barriers among Canada, Mexico, and the United States. 
D) will reduce American exports to Mexico.

Question 17

The following is the Production possibilities tables for two countries, Latalia and Trombonia: Latalia's production possibilities   Refer to the above tables.In Latalia the domestic real cost of 1 ton of pork:

Accepted Answer

A) is 3 tons of beans. 
B) diminishes with the level of pork production. 
C) is 5 tons of beans. 
D) is 1/5 of a ton of beans. 
A) is 3 tons of beans. 
B) diminishes with the level of pork production. 
C) is 5 tons of beans. 
D) is 1/5 of a ton of beans.

Question 18

Several new players have significantly expanded their share of world trade.These nations are:

Accepted Answer

A) China, Taiwan, Malaysia, and Indonesia. 
B) China, Singapore, South Korea, and Taiwan. 
C) North Korea, China, Hong Kong, and Cambodia. 
D) Japan, China, South Korea, and Taiwan. 
A) China, Taiwan, Malaysia, and Indonesia. 
B) China, Singapore, South Korea, and Taiwan. 
C) North Korea, China, Hong Kong, and Cambodia. 
D) Japan, China, South Korea, and Taiwan.

Question 19

Imposing tariffs to increase domestic employment?

Accepted Answer

A) causes a decrease in consumer prices 
B) causes a decrease in the tariff rates of foreign nations 
C) causes an increase in the number of jobs, especially for those in the export sector. 
D) is referred to as a "beggar thy neighbour" policy. 
A) causes a decrease in consumer prices 
B) causes a decrease in the tariff rates of foreign nations 
C) causes an increase in the number of jobs, especially for those in the export sector. 
D) is referred to as a "beggar thy neighbour" policy.

Question 20

Given the following production possibilities schedules, it can be seen that:

Accepted Answer

A) France has a comparative advantage in producing wine. 
B) Germany can produce more machines than France. 
C) France has a comparative advantage in producing machines. 
D) Germany can produce more of both goods than France. 
A) France has a comparative advantage in producing wine. 
B) Germany can produce more machines than France. 
C) France has a comparative advantage in producing machines. 
D) Germany can produce more of both goods than France.

Exam 17: B: International Trade

If Canadian government were to impose a quota on wristwatches imported from Switzerland, the:

Refer to the tables below.Which of the following would be feasible terms for trade between Latalia and Trombonia? Production possibilities tables for two countries, Latalia and Trombonia: Latalia's production possibilities: Trombonia's production possibilities:

As of 2012, the Euro Zone consists of the 17 members of the EU that use the Euro as a common currency.

An import quota:

Refer to the above diagram, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product.With a PcPt per unit tariff, the quantities sold by foreign and domestic producers respectively will be:

Refer to the above diagram, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product.Sd + Q is the product supply curve after an import quota is imposed.The size of the import quota:

Which of the following countries had the lowest percentage of exports as a percentage of GDP in 2015?.Use Image 17.2 Global Perspective.

The provisions of the Uruguay Round of GATT were phased in through:

The long-run effect of tariffs is:

The following shows the Production possibilities tables for two countries, Latalia and Trombonia: Refer to the above tables.If these two nations specialize on the basis of comparative advantage:

The following table is domestic supply and demand schedules for a product.Suppose that the world price of the product is $1. Refer to the above data.With a $1 dollar per unit tariff, price and total quantity sold will be:

Which of the following is an example of a labour-intensive commodity?

Consider two countries which trade with each other.As these countries expand their production according to their comparative advantage, most probably they will experience:

The major difference between a tariff and a quota on an imported product is that a tariff produces revenue for the government.

The North American Free Trade Agreement (NAFTA):

The following is the Production possibilities tables for two countries, Latalia and Trombonia: Latalia's production possibilities Refer to the above tables.In Latalia the domestic real cost of 1 ton of pork:

Several new players have significantly expanded their share of world trade.These nations are:

Imposing tariffs to increase domestic employment?

Given the following production possibilities schedules, it can be seen that:

B: Limits, Alternatives, and Choices

A: - Limits, Alternatives, and Choices

B: The Market System and the Circular Flow

A: - The Market System and the Circular Flow

B: Demand, Supply, and Market Equilibrium

A: - Demand, Supply, and Market Equilibrium

B: Market Failures: Public Goods and Externalities

A: - Market Failures: Public Goods and Externalities

B: Governments Role and Government Failure

A: Governments Role and Government Failure

B: an Introduction to Macroeconomics

A: an Introduction to Macroeconomics

B: Measuring the Economys Output

A: Measuring the Economys Output

B: Economic Growth

A: Economic Growth

B: Business Cycles, Unemployment, and Inflation

A: Business Cycles, Unemployment, and Inflation

B: Basic Macroeconomic Relationships

A: Basic Macroeconomic Relationships

B: The Aggregate Expenditures Model

A: The Aggregate Expenditures Model

B: Aggregate Demand and Aggregate Supply

A: Aggregate Demand and Aggregate Supply

B: Fiscal Policy, Deficits, Surpluses, and Debt

A: Fiscal Policy, Deficits, Surpluses, and Debt

B: Money, Banking, and Money Creation

A: Money, Banking, and Money Creation

B: Interest Rates and Monetary Policy

A: Interest Rates and Monetary Policy

C: Financial Economics

A: Long-Run Macroeconomic Adjustments

B: Long-Run Macroeconomic Adjustments

A: International Trade

A: The Balance of Payments and Exchange Rates

B: The Balance of Payments and Exchange Rates

The Economics of Developing Countries

Filters

Refer to the above diagram, where S_d and D_d are the domestic supply and demand for a product and P_c is the world price of that product.With a P_cP_t per unit tariff, the quantities sold by foreign and domestic producers respectively will be:

Refer to the above diagram, where S_d and D_d are the domestic supply and demand for a product and P_c is the world price of that product.S_d + Q is the product supply curve after an import quota is imposed.The size of the import quota: