Question 1

Canada imposes a tariff on $1 per imported shirt,the higher tariff

Accepted Answer

A) raises the price of a shirt to Canadian consumers. 
B) benefits Canadian shirt producers. 
C) decreases imports of shirts into Canada. 
D) creates a social loss. 
E) all of the above. 
A) raises the price of a shirt to Canadian consumers. 
B) benefits Canadian shirt producers. 
C) decreases imports of shirts into Canada. 
D) creates a social loss. 
E) all of the above.

Question 2

Tariffs and import quotas both result in

Accepted Answer

A) lower levels of domestic production. 
B) the domestic government gaining revenue. 
C) lower levels of imports. 
D) higher levels of domestic consumption. 
E) an increase in demand. 
A) lower levels of domestic production. 
B) the domestic government gaining revenue. 
C) lower levels of imports. 
D) higher levels of domestic consumption. 
E) an increase in demand.

Question 3

Who benefits from imports?

Accepted Answer

A) domestic consumers 
B) domestic producers 
C) foreign consumers 
D) domestic workers in the industry 
E) none of the above benefit 
A) domestic consumers 
B) domestic producers 
C) foreign consumers 
D) domestic workers in the industry 
E) none of the above benefit

Question 4

If Canada imposes a tariff on imported cars,

Accepted Answer

A) Canada's demand curve for cars shifts rightward. 
B) Canada's demand curve for cars shifts leftward. 
C) Canada's supply curve of cars shifts rightward. 
D) Canada's supply curve of cars shifts leftward. 
E) the price in Canada rises but neither Canada's demand curve nor Canada's supply curve shifts. 
A) Canada's demand curve for cars shifts rightward. 
B) Canada's demand curve for cars shifts leftward. 
C) Canada's supply curve of cars shifts rightward. 
D) Canada's supply curve of cars shifts leftward. 
E) the price in Canada rises but neither Canada's demand curve nor Canada's supply curve shifts.

Question 5

The fundamental force that drives international trade is

Accepted Answer

A) absolute advantage. 
B) importation duties. 
C) the advantage of execution. 
D) export advantage. 
E) comparative advantage. 
A) absolute advantage. 
B) importation duties. 
C) the advantage of execution. 
D) export advantage. 
E) comparative advantage.

Question 6

Which of the following statements about Canada's international trade in 2010 is correct?

Accepted Answer

A) The value of Canada's imports exceeded the value of Canada's exports. 
B) The value of Canada's exports was about 45 percent of the value of total expenditure in Canada. 
C) Canada imported only goods. 
D) Canada was the world's second largest trader. 
E) Canada exported only goods. 
A) The value of Canada's imports exceeded the value of Canada's exports. 
B) The value of Canada's exports was about 45 percent of the value of total expenditure in Canada. 
C) Canada imported only goods. 
D) Canada was the world's second largest trader. 
E) Canada exported only goods.

Question 7

Of the groups listed below,which is most likely to lobby for protection?

Accepted Answer

A) workers in the import industry 
B) workers in the export industry 
C) consumers in the import industry 
D) producers in the export industry 
E) All of the above. 
A) workers in the import industry 
B) workers in the export industry 
C) consumers in the import industry 
D) producers in the export industry 
E) All of the above.

Question 8

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

Accepted Answer

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

Question 9

________ specifies the maximum amount of a good that may be imported in a given period of time.

Accepted Answer

A) An import restriction 
B) A legislative restriction 
C) A trade restriction 
D) An import quota 
E) An import subsidy 
A) An import restriction 
B) A legislative restriction 
C) A trade restriction 
D) An import quota 
E) An import subsidy

Question 10

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

Accepted Answer

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

Question 11

The idea of dynamic comparative advantage is the basis for which of the following arguments for protection from foreign competition?

Accepted Answer

A) the cheap foreign labour argument 
B) the infant-industry argument 
C) the dumping argument 
D) the saves jobs argument 
E) the prevents rich countries from exploiting developing countries argument 
A) the cheap foreign labour argument 
B) the infant-industry argument 
C) the dumping argument 
D) the saves jobs argument 
E) the prevents rich countries from exploiting developing countries argument

Question 12

Import quotas

Accepted Answer

A) are the same as tariffs. 
B) are not used by Canada. 
C) set the minimum percentage of the value of a product that must consist of imported components. 
D) benefit society. 
E) set the maximum number of units of a good that can be imported in a given time period. 
A) are the same as tariffs. 
B) are not used by Canada. 
C) set the minimum percentage of the value of a product that must consist of imported components. 
D) benefit society. 
E) set the maximum number of units of a good that can be imported in a given time period.

Question 13

Compared to the situation before international trade,after Canada imports a good,production in Canada ________ and consumption in Canada ________.

Accepted Answer

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

Question 14

Tariffs and import quotas differ in that

Accepted Answer

A) one is a form of trade restriction, while the other is not. 
B) one is a tax, while the other is a limit. 
C) one is imposed by the government, while the other is imposed by the private sector. 
D) one is legal, while the other is not. 
E) one increases imports, while the other decreases imports. 
A) one is a form of trade restriction, while the other is not. 
B) one is a tax, while the other is a limit. 
C) one is imposed by the government, while the other is imposed by the private sector. 
D) one is legal, while the other is not. 
E) one increases imports, while the other decreases imports.

Question 15

Reducing a tariff ________ the domestic production of the good and ________ the total domestic consumption of the good.

Accepted Answer

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

Question 16

A market is open to international trade.At the world price,the quantity demanded is 150 units and the quantity supplied is 200 units.This country will

Accepted Answer

A) import 50 units. 
B) export 200 units. 
C) import 150 units. 
D) import 200 units. 
E) export 50 units. 
A) import 50 units. 
B) export 200 units. 
C) import 150 units. 
D) import 200 units. 
E) export 50 units.

Exam 31:International Trade Policy

Canada imposes a tariff on $1 per imported shirt,the higher tariff

Tariffs and import quotas both result in

Who benefits from imports?

If Canada imposes a tariff on imported cars,

The fundamental force that drives international trade is

Which of the following statements about Canada's international trade in 2010 is correct?

Of the groups listed below,which is most likely to lobby for protection?

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

________ specifies the maximum amount of a good that may be imported in a given period of time.

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

The idea of dynamic comparative advantage is the basis for which of the following arguments for protection from foreign competition?

Import quotas

Compared to the situation before international trade,after Canada imports a good,production in Canada ________ and consumption in Canada ________.

Tariffs and import quotas differ in that

Reducing a tariff ________ the domestic production of the good and ________ the total domestic consumption of the good.

A market is open to international trade.At the world price,the quantity demanded is 150 units and the quantity supplied is 200 units.This country will

What Is Economics?

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

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 Keynesian Model

Canadian Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

Filters

Compared to the situation before international trade,after Canada imports a good,production in Canada and consumption in Canada .

Reducing a tariff the domestic production of the good and the total domestic consumption of the good.