Question 1

List four protectionist policies.

Accepted Answer

Protectionist policies include

Question 2

If we eliminated our textile tariffs, the dislocated workers could easily switch to other jobs.

Accepted Answer

A) True 
 B)False

Question 3

When President Jefferson declared a self- imposed embargo on international shipping between 1807- 1809, it may be said that the U.S. came very close to:

Accepted Answer

A)  free trade. 
B)  comparative advantage. 
C)  autarky. 
D)  specialization. 
A)  free trade. 
B)  comparative advantage. 
C)  autarky. 
D)  specialization.

Question 4

The members of NAFTA are the United States, Canada, and:

Accepted Answer

A)  France. 
B)  Mexico. 
C)  Japan. 
D)  Chile. 
A)  France. 
B)  Mexico. 
C)  Japan. 
D)  Chile.

Question 5

The WTO and GATT promote trade by:

Accepted Answer

A)  reducing tariffs. 
B)  setting the prices of goods sold internationally. 
C)  directing trade. 
D)  all of the above 
A)  reducing tariffs. 
B)  setting the prices of goods sold internationally. 
C)  directing trade. 
D)  all of the above

Question 6

The phenomenon that occurs when an infant industry becomes better and more efficient as it produces more of a good is called:

Accepted Answer

A)  learning to walk. 
B)  learning by doing. 
C)  crawling then walking. 
D)  comparative advantage. 
A)  learning to walk. 
B)  learning by doing. 
C)  crawling then walking. 
D)  comparative advantage.

Question 7

Which of the following is not a reason to follow protectionist trade policies?

Accepted Answer

A)  to protect domestic workers from foreign competition 
B)  because buying domestic goods is a patriotic act 
C)  to protect an infant industry from foreign competitors 
D)  to help firms establish a world monopoly in a particular market 
A)  to protect domestic workers from foreign competition 
B)  because buying domestic goods is a patriotic act 
C)  to protect an infant industry from foreign competitors 
D)  to help firms establish a world monopoly in a particular market

Question 8

Under current WTO rules a country can make imports be more environmentally friendly than domestic goods.

Accepted Answer

A) True 
 B)False

Question 9

The rate at which nations will exchange goods and service is known as the:

Accepted Answer

A)  transfer rate. 
B)  terms of trade. 
C)  exchange rate. 
D)  terms of exchange. 
A)  transfer rate. 
B)  terms of trade. 
C)  exchange rate. 
D)  terms of exchange.

Question 10

Figure 18.4
-Refer to Figure 18.4. With free trade, what is the equilibrium price of artichokes in Duckland?

Accepted Answer

A)  $0 
B)  $3 
C)  $2 
D)  $4 
A)  $0 
B)  $3 
C)  $2 
D)  $4

Question 11

Consider the following weekly production possibilities of bagpipes and accordions in Poland and Scotland:     What is each country's opportunity cost of producing bagpipes and accordions? If the countries could, should they trade?

Accepted Answer

Scotland's opportunity cost of a bagpipe

Question 12

Figure 18.2
-Refer to Figure 18.2. The opportunity cost of producing tomatoes in Pizzaland is:

Accepted Answer

A)  0.6 cheese. 
B)  2.5 cheese. 
C)  1.67 cheese. 
D)  0.4 cheese. 
A)  0.6 cheese. 
B)  2.5 cheese. 
C)  1.67 cheese. 
D)  0.4 cheese.

Question 13

Figure 18.1
-Refer to Figure 18.1. After trade and specialization begin, the maximum amount of sunglasses that Duckland can consume is:

Accepted Answer

A)  40. 
B)  100. 
C)  150. 
D)  90. 
A)  40. 
B)  100. 
C)  150. 
D)  90.

Question 14

An import ban results in:

Accepted Answer

A)  a decrease in the supply of the product. 
B)  a decrease in the quantity of the product bought and sold. 
C)  an increase in the product's price. 
D)  all of the above 
A)  a decrease in the supply of the product. 
B)  a decrease in the quantity of the product bought and sold. 
C)  an increase in the product's price. 
D)  all of the above

Question 15

Voluntary export restraints:

Accepted Answer

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

Question 16

The U.S. has a lot of both skilled and unskilled workers in the economy. Suppose that the U.S.'s comparative advantage is in industries that require more skilled workers. Instead of using protectionist policies, what other policy can the government use to dampen the negative effects unskilled workers may face a result of free trade?

Accepted Answer

In the short run, the governme

Question 17

The increase in the U.S trade deficit with Mexico after NAFTA went into effect was most likely the result of:

Accepted Answer

A)  predatory dumping by U.S. companies. 
B)  the devaluation of the peso. 
C)  predatory dumping by Mexican companies. 
D)  the appreciation of the peso. 
A)  predatory dumping by U.S. companies. 
B)  the devaluation of the peso. 
C)  predatory dumping by Mexican companies. 
D)  the appreciation of the peso.

Question 18

A situation in which a country does not trade with another country is called:

Accepted Answer

A)  specialization. 
B)  free trade. 
C)  autarky. 
D)  comparative advantage. 
A)  specialization. 
B)  free trade. 
C)  autarky. 
D)  comparative advantage.

Question 19

-Refer to Table 18.2. The U.S. has a comparative advantage in the production of:

Accepted Answer

A)  tractors. 
B)  stereos. 
C)  both stereos and tractors. 
D)  neither stereos nor tractors. 
A)  tractors. 
B)  stereos. 
C)  both stereos and tractors. 
D)  neither stereos nor tractors.

Question 20

As punishment to Europe for refusing to remove their ban on U.S. and Canadian hormone- treated beef, the WTO allowed the U.S. and Canada:

Accepted Answer

A)  to ban all goods and services imported from Europe. 
B)  impose retaliatory tariffs on a wide range of European products. 
C)  impose retaliatory quotas on a wide range of European products. 
D)  to ban only European beef from entering their countries. 
A)  to ban all goods and services imported from Europe. 
B)  impose retaliatory tariffs on a wide range of European products. 
C)  impose retaliatory quotas on a wide range of European products. 
D)  to ban only European beef from entering their countries.

List four protectionist policies.

If we eliminated our textile tariffs, the dislocated workers could easily switch to other jobs.

When President Jefferson declared a self- imposed embargo on international shipping between 1807- 1809, it may be said that the U.S. came very close to:

The members of NAFTA are the United States, Canada, and:

The WTO and GATT promote trade by:

The phenomenon that occurs when an infant industry becomes better and more efficient as it produces more of a good is called:

Which of the following is not a reason to follow protectionist trade policies?

Under current WTO rules a country can make imports be more environmentally friendly than domestic goods.

The rate at which nations will exchange goods and service is known as the:

Figure 18.4 -Refer to Figure 18.4. With free trade, what is the equilibrium price of artichokes in Duckland?

Consider the following weekly production possibilities of bagpipes and accordions in Poland and Scotland: What is each country's opportunity cost of producing bagpipes and accordions? If the countries could, should they trade?

Figure 18.2 -Refer to Figure 18.2. The opportunity cost of producing tomatoes in Pizzaland is:

Figure 18.1 -Refer to Figure 18.1. After trade and specialization begin, the maximum amount of sunglasses that Duckland can consume is:

An import ban results in:

Voluntary export restraints:

The increase in the U.S trade deficit with Mexico after NAFTA went into effect was most likely the result of:

A situation in which a country does not trade with another country is called:

-Refer to Table 18.2. The U.S. has a comparative advantage in the production of:

As punishment to Europe for refusing to remove their ban on U.S. and Canadian hormone- treated beef, the WTO allowed the U.S. and Canada:

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

Exam 18: International Trade and Public Policy

List four protectionist policies.

If we eliminated our textile tariffs, the dislocated workers could easily switch to other jobs.

When President Jefferson declared a self- imposed embargo on international shipping between 1807- 1809, it may be said that the U.S. came very close to:

The members of NAFTA are the United States, Canada, and:

The WTO and GATT promote trade by:

The phenomenon that occurs when an infant industry becomes better and more efficient as it produces more of a good is called:

Which of the following is not a reason to follow protectionist trade policies?

Under current WTO rules a country can make imports be more environmentally friendly than domestic goods.

The rate at which nations will exchange goods and service is known as the:

Figure 18.4 -Refer to Figure 18.4. With free trade, what is the equilibrium price of artichokes in Duckland?

Consider the following weekly production possibilities of bagpipes and accordions in Poland and Scotland: What is each country's opportunity cost of producing bagpipes and accordions? If the countries could, should they trade?

Figure 18.2 -Refer to Figure 18.2. The opportunity cost of producing tomatoes in Pizzaland is:

Figure 18.1 -Refer to Figure 18.1. After trade and specialization begin, the maximum amount of sunglasses that Duckland can consume is:

An import ban results in:

Voluntary export restraints:

The increase in the U.S trade deficit with Mexico after NAFTA went into effect was most likely the result of:

A situation in which a country does not trade with another country is called:

-Refer to Table 18.2. The U.S. has a comparative advantage in the production of:

As punishment to Europe for refusing to remove their ban on U.S. and Canadian hormone- treated beef, the WTO allowed the U.S. and Canada:

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