Question 1

Which of the following is a problem of subsidizing an industry to help it establish a world monopoly?

Accepted Answer

A)  All monopolies create deadweight losses. 
B)  If both the domestic firm and the foreign firm enter the market, nations might end up subsidizing two money losing firms. 
C)  A nation may pick the wrong industry to subsidize. 
D)  both B and C 
A)  All monopolies create deadweight losses. 
B)  If both the domestic firm and the foreign firm enter the market, nations might end up subsidizing two money losing firms. 
C)  A nation may pick the wrong industry to subsidize. 
D)  both B and C

Question 2

Figure 18.5
-For the good in Figure 18.5, with free trade, the people in the country will produce:

Accepted Answer

A)  Q5. 
B)  Q3. 
C)  Q4. 
D)  Q1. 
A)  Q5. 
B)  Q3. 
C)  Q4. 
D)  Q1.

Question 3

When is an import ban the same as an import quota?

Accepted Answer

A)  when the good under the import ban is taxed 
B)  when the quota is zero 
C)  never 
D)  when all the goods under the quota is taxed 
A)  when the good under the import ban is taxed 
B)  when the quota is zero 
C)  never 
D)  when all the goods under the quota is taxed

Question 4

Suppose France produces only two goods, airplanes and grapes. If France has a comparative advantage in grapes, a move toward free trade will:

Accepted Answer

A)  benefit grape workers, harm airplane workers, but harm the nation as a whole. 
B)  harm grape workers, harm airplane workers, but benefit the nation as a whole. 
C)  harm grape workers, benefit airplane workers, but benefit the nation as a whole. 
D)  benefit grape workers, harm airplane workers, but benefit the nation as a whole. 
A)  benefit grape workers, harm airplane workers, but harm the nation as a whole. 
B)  harm grape workers, harm airplane workers, but benefit the nation as a whole. 
C)  harm grape workers, benefit airplane workers, but benefit the nation as a whole. 
D)  benefit grape workers, harm airplane workers, but benefit the nation as a whole.

Question 5

Which of the following groups of countries are members of NAFTA?

Accepted Answer

A)  The U.S.A., Japan, and Mexico 
B)  The U.S.A., Canada, and Mexico 
C)  The U.S.A., France, and Germany 
D)  Japan, Canada, and Mexico 
A)  The U.S.A., Japan, and Mexico 
B)  The U.S.A., Canada, and Mexico 
C)  The U.S.A., France, and Germany 
D)  Japan, Canada, and Mexico

Question 6

The production possibilities curve shows the combinations of goods that can be:

Accepted Answer

A)  consumed by a nation before trade begins. 
B)  produced by a nation after trade begins. 
C)  produced by a nation before trading begins. 
D)  all of the above 
A)  consumed by a nation before trade begins. 
B)  produced by a nation after trade begins. 
C)  produced by a nation before trading begins. 
D)  all of the above

Question 7

What countries are in NAFTA?

Accepted Answer

Canada, Me

Question 8

Consider the following weekly production possibilities of bagpipes and accordions in Poland and Scotland:     What is the possible range of terms of trade between Poland and Scotland?

Accepted Answer

A possible set of terms of tra

Question 9

Recall Application 2, "Protection for Candle Makers," to answer the following questions:
-After reading Frederic Bastiat's petition, one can clearly see that Bastiat was pro- protectionism.

Accepted Answer

A) True 
 B)False

Question 10

Voluntary Export Restraints (VERs):

Accepted Answer

A)  are legal under the WTO rules. 
B)  have the same effect as an import quota. 
C)  violate the spirit of international trade agreements. 
D)  all of the above 
A)  are legal under the WTO rules. 
B)  have the same effect as an import quota. 
C)  violate the spirit of international trade agreements. 
D)  all of the above

Question 11

The importers of a good may prefer a quota over a tariff because:

Accepted Answer

A)  a tariff, but not a quota, generates additional profits for importers, not the government. 
B)  a quota may have more loopholes in its implementation than a tariff. 
C)  a quota generates additional profits for importers. 
D)  the government gives subsidies to those who import from other countries. 
A)  a tariff, but not a quota, generates additional profits for importers, not the government. 
B)  a quota may have more loopholes in its implementation than a tariff. 
C)  a quota generates additional profits for importers. 
D)  the government gives subsidies to those who import from other countries.

Question 12

The government can facilitate the transfer of unskilled workers to high- skilled jobs by:

Accepted Answer

A)  laying off skilled workers to provide jobs for unskilled workers. 
B)  increasing tariffs to speed the development of jobs requiring skilled labor. 
C)  increasing tariffs to help unskilled workers. 
D)  providing assistance for education and training for unskilled workers. 
A)  laying off skilled workers to provide jobs for unskilled workers. 
B)  increasing tariffs to speed the development of jobs requiring skilled labor. 
C)  increasing tariffs to help unskilled workers. 
D)  providing assistance for education and training for unskilled workers.

Question 13

Would consumers benefit more from a tariff or a quota on imports? Explain.

Accepted Answer

In both cases, the price of the good is

Question 14

Why would a country want to shield domestic workers from foreign competition?

Accepted Answer

Protection

Question 15

Why did the U.S. boycott of Mexican tuna caught with nets violated the rules of WTO?

Accepted Answer

The killing of dolph

Question 16

Figure 18.4
-Refer to Figure 18.4. With an import ban, what is the equilibrium quantity of artichokes in Duckland?

Accepted Answer

A)  65 
B)  85 
C)  30 
D)  75 
A)  65 
B)  85 
C)  30 
D)  75

Question 17

Figure 18.3
-Refer to Figure 18.3. With a tariff, the per unit government revenue is:

Accepted Answer

A)  $8. 
B)  $0. 
C)  $2. 
D)  $10. 
A)  $8. 
B)  $0. 
C)  $2. 
D)  $10.

Question 18

-Refer to Table 18.1. The nation with a comparative advantage in bagpipes is:

Accepted Answer

A)  Scotland. 
B)  Poland. 
C)  both Scotland and Poland. 
D)  neither Scotland nor Poland. 
A)  Scotland. 
B)  Poland. 
C)  both Scotland and Poland. 
D)  neither Scotland nor Poland.

Question 19

The terms of trade is the:

Accepted Answer

A)  rate at which two goods will be exchanged. 
B)  the end point of a consumption possibilities curve. 
C)  exchange rate for two nations. 
D)  opportunity costs of production. 
A)  rate at which two goods will be exchanged. 
B)  the end point of a consumption possibilities curve. 
C)  exchange rate for two nations. 
D)  opportunity costs of production.

Question 20

Figure 18.3
-Refer to Figure 18.3. With an import ban, domestic production is:

Accepted Answer

A)  80. 
B)  0. 
C)  60. 
D)  100. 
A)  80. 
B)  0. 
C)  60. 
D)  100.

Which of the following is a problem of subsidizing an industry to help it establish a world monopoly?

Figure 18.5 -For the good in Figure 18.5, with free trade, the people in the country will produce:

When is an import ban the same as an import quota?

Suppose France produces only two goods, airplanes and grapes. If France has a comparative advantage in grapes, a move toward free trade will:

Which of the following groups of countries are members of NAFTA?

The production possibilities curve shows the combinations of goods that can be:

What countries are in NAFTA?

Consider the following weekly production possibilities of bagpipes and accordions in Poland and Scotland: What is the possible range of terms of trade between Poland and Scotland?

Recall Application 2, "Protection for Candle Makers," to answer the following questions: -After reading Frederic Bastiat's petition, one can clearly see that Bastiat was pro- protectionism.

Voluntary Export Restraints (VERs):

The importers of a good may prefer a quota over a tariff because:

The government can facilitate the transfer of unskilled workers to high- skilled jobs by:

Would consumers benefit more from a tariff or a quota on imports? Explain.

Why would a country want to shield domestic workers from foreign competition?

Why did the U.S. boycott of Mexican tuna caught with nets violated the rules of WTO?

Figure 18.4 -Refer to Figure 18.4. With an import ban, what is the equilibrium quantity of artichokes in Duckland?

Figure 18.3 -Refer to Figure 18.3. With a tariff, the per unit government revenue is:

-Refer to Table 18.1. The nation with a comparative advantage in bagpipes is:

The terms of trade is the:

Figure 18.3 -Refer to Figure 18.3. With an import ban, domestic production is:

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nations Production and Income

Unemployment and Inflation

The Economy at Full Employment

Why Do Economies Grow

Aggregate Demand and Aggregate Supply

Fiscal Policy

The Income-Expenditure Model

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

The World of International Finance

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Exam 18: International Trade and Public Policy

Which of the following is a problem of subsidizing an industry to help it establish a world monopoly?

Figure 18.5 -For the good in Figure 18.5, with free trade, the people in the country will produce:

When is an import ban the same as an import quota?

Suppose France produces only two goods, airplanes and grapes. If France has a comparative advantage in grapes, a move toward free trade will:

Which of the following groups of countries are members of NAFTA?

The production possibilities curve shows the combinations of goods that can be:

What countries are in NAFTA?

Consider the following weekly production possibilities of bagpipes and accordions in Poland and Scotland: What is the possible range of terms of trade between Poland and Scotland?

Recall Application 2, "Protection for Candle Makers," to answer the following questions: -After reading Frederic Bastiat's petition, one can clearly see that Bastiat was pro- protectionism.

Voluntary Export Restraints (VERs):

The importers of a good may prefer a quota over a tariff because:

The government can facilitate the transfer of unskilled workers to high- skilled jobs by:

Would consumers benefit more from a tariff or a quota on imports? Explain.

Why would a country want to shield domestic workers from foreign competition?

Why did the U.S. boycott of Mexican tuna caught with nets violated the rules of WTO?

Figure 18.4 -Refer to Figure 18.4. With an import ban, what is the equilibrium quantity of artichokes in Duckland?

Figure 18.3 -Refer to Figure 18.3. With a tariff, the per unit government revenue is:

-Refer to Table 18.1. The nation with a comparative advantage in bagpipes is:

The terms of trade is the:

Figure 18.3 -Refer to Figure 18.3. With an import ban, domestic production is:

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nations Production and Income

Unemployment and Inflation

The Economy at Full Employment

Why Do Economies Grow

Aggregate Demand and Aggregate Supply

Fiscal Policy

The Income-Expenditure Model

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

The World of International Finance

Filters