Exam 10: International Trade Policy

Refer to the graph shown for a small country that is a price taker internationally. Assume the foreign supply of this product is perfectly elastic at a price of $4 per unit. Starting from a free trade equilibrium, a tariff in the amount of $2 per unit would be expected to cause domestic consumption to:

The voluntary export restraints on autos by Japan in the early 1980s were:

When two country's laws and regulations are similar, economist's arguments for free trade are:

A developing country can be expected to rely more on:

When per-unit output costs fall as output increases, this is called:

All of the following are arguments in support of protectionist legislation except:

Which of the following is not an argument in favor of protecting domestic industries from foreign competition?

Most economists:

The voluntary export restraints on autos by Japan in the early 1980s were:

Refer to the graph shown for a small country that is a price taker internationally. Assume the foreign supply of this product is perfectly elastic at a price of $4 per unit. Starting from a free trade equilibrium, an import quota of 2,500 would cause domestic consumption to:

Quotas and tariffs can:

World trade declined in the 1930s. Which of the following is the best explanation of that decline?

Becoming better at a task the more often you perform is referred to as:

Domestic producers prefer quotas to tariffs because quotas raise the price of imports and tariffs do not.

One impact of an import quota is to:

Infant industry protection can be justified in theory by:

As a country develops economically, what changes usually take place in the goods it exports?

Refer to the graph shown for a small country that is a price taker internationally. Assume the foreign supply of this product is perfectly elastic at a price of $4 per unit. If there are no trade restrictions, this country will produce:

Economists believe free trade areas such as NAFTA and the European Union are problematic because they

Technological changes in telecommunications have: