Question 1

Which of the following trade agreements provides for the development of a single market among its members?

Accepted Answer

A)  North American Free Trade Agreement 
B)  World Trade Organization 
C)  European Union 
D)  Asian Pacific Economic Cooperation 
A)  North American Free Trade Agreement 
B)  World Trade Organization 
C)  European Union 
D)  Asian Pacific Economic Cooperation

Question 2

Suppose the nation of Arcadia produces only two goods, teapots and surfboards. If Arcadia produces only teapots, it can make 40 per day. If Arcadia produces only surfboards, it can make 60 per day. What is the opportunity cost of 1 teapot in Arcadia?

Accepted Answer

A)  2/3 of a surfboard 
B)  1.5 surfboards 
C)  40 surfboards 
D)  60 surfboards 
A)  2/3 of a surfboard 
B)  1.5 surfboards 
C)  40 surfboards 
D)  60 surfboards

Question 3

A production possibilities curve shows the combinations of products which can be produced in an economy which is fully employing and efficiently using its productive resources.

Accepted Answer

A) True 
 B)False

Question 4

Table 18.1
Daily Output of Russia and Panama
  
-Refer to Table 18.1. The opportunity cost of a glove in Panama is

Accepted Answer

A)  1/8 of a hat. 
B)  3/4 of a hat. 
C)  4/3 hats. 
D)  8 hats. 
A)  1/8 of a hat. 
B)  3/4 of a hat. 
C)  4/3 hats. 
D)  8 hats.

Question 5

What is dumping and why would firms engage in it?

Accepted Answer

Dumping is when the price charged in a f

Question 6

The equilibrium price under an import quota is below the price that occurs with free trade.

Accepted Answer

A) True 
 B)False

Question 7

What is the difference between comparative advantage and absolute advantage?

Accepted Answer

Comparative advantage refers to the abil

Question 8

Recall the Application about the method used by the Commerce Department to determine if imported products are being sold at lower prices in the United States than in their countries of origin to answer the following question(s).
-According to this Application, the Commerce Department typically uses ________ to determine of foreign companies are selling products at lower prices in the United States than in their own domestic markets.

Accepted Answer

A)  price information supplied by the foreign manufacturing company 
B)  actual prices charged in home markets compared to foreign markets 
C)  value-added price estimates supplied by the World Trade Organization (WTO) 
D)  a constructed value method where it estimates prices charged in an exporter's home market 
A)  price information supplied by the foreign manufacturing company 
B)  actual prices charged in home markets compared to foreign markets 
C)  value-added price estimates supplied by the World Trade Organization (WTO) 
D)  a constructed value method where it estimates prices charged in an exporter's home market

Question 9

Figure 18.1
  
-Refer to Figure 18.1. The opportunity cost of bicycles in Canada is

Accepted Answer

A)  1/2 of a hang glider. 
B)  2/3 of a hang glider. 
C)  2 hang gliders. 
D)  4 hang gliders. 
A)  1/2 of a hang glider. 
B)  2/3 of a hang glider. 
C)  2 hang gliders. 
D)  4 hang gliders.

Question 10

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

Accepted Answer

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

Question 11

Exporting nations often agree to voluntary export restraints in an attempt to

Accepted Answer

A)  employ more workers in the importing nation. 
B)  avoid more restrictive trade policies. 
C)  increase global welfare. 
D)  decrease inflation. 
A)  employ more workers in the importing nation. 
B)  avoid more restrictive trade policies. 
C)  increase global welfare. 
D)  decrease inflation.

Question 12

Suppose the nation of Alphonia was charged with dumping electric lawnmowers in the nation of Omegalon. The result of Omegalon imposing anti-dumping tariffs on electric lawnmowers manufactured in Alphonia would most likely be

Accepted Answer

A)  an increased market share for Alphonian-manufactured electric lawnmowers in Omegalon. 
B)  higher selling prices on electric lawnmowers in Omegalon. 
C)  lower selling prices on electric lawnmowers in Alphonia. 
D)  increased exports of electric lawnmowers from Alphonia. 
A)  an increased market share for Alphonian-manufactured electric lawnmowers in Omegalon. 
B)  higher selling prices on electric lawnmowers in Omegalon. 
C)  lower selling prices on electric lawnmowers in Alphonia. 
D)  increased exports of electric lawnmowers from Alphonia.

Question 13

Figure 18.3
  
-Refer to Figure 18.3. After trade and specialization begin, the maximum amount of scooters that Livonia can consume is

Accepted Answer

A)  120. 
B)  100. 
C)  80. 
D)  40. 
A)  120. 
B)  100. 
C)  80. 
D)  40.

Question 14

Figure 18.2
  
-Refer to Figure 18.2. The opportunity cost of producing spears in Macadamia is

Accepted Answer

A)  3/4 of a fishing pole. 
B)  5/6 of a fishing pole. 
C)  6/5 fishing poles. 
D)  4/3 fishing poles. 
A)  3/4 of a fishing pole. 
B)  5/6 of a fishing pole. 
C)  6/5 fishing poles. 
D)  4/3 fishing poles.

Question 15

The production possibilities curve represents the set of all

Accepted Answer

A)  feasible combinations of goods that the economy can produce given that a nation's resources are fully employed. 
B)  factors of production that can be used to manufacture goods and services. 
C)  combinations of goods and services that can be used in the production of other goods and services. 
D)  nonlinear forms of production in the economy. 
A)  feasible combinations of goods that the economy can produce given that a nation's resources are fully employed. 
B)  factors of production that can be used to manufacture goods and services. 
C)  combinations of goods and services that can be used in the production of other goods and services. 
D)  nonlinear forms of production in the economy.

Question 16

Figure 18.2
  
-Refer to Figure 18.2. After trade and specialization begin, the maximum amount of spears that Macadamia can consume is

Accepted Answer

A)  40. 
B)  100. 
C)  120. 
D)  160. 
A)  40. 
B)  100. 
C)  120. 
D)  160.

Question 17

What is a voluntary export restraint?

Accepted Answer

A voluntary export restraint i

Question 18

Which of the following benefits from a quota or VER?

Accepted Answer

A)  consumers 
B)  domestic producers 
C)  the government 
D)  all of the above 
A)  consumers 
B)  domestic producers 
C)  the government 
D)  all of the above

Question 19

Figure 18.1
  
-Refer to Figure 18.1. ________ has a comparative disadvantage in bicycles and ________ has a comparative disadvantage in hang gliders.

Accepted Answer

A)  The United States; the United States 
B)  The United States; Canada 
C)  Canada; the United States 
D)  Canada; Canada 
A)  The United States; the United States 
B)  The United States; Canada 
C)  Canada; the United States 
D)  Canada; Canada

Question 20

What are the rationales for protectionist policies?

Accepted Answer

The rationales for protectioni

Which of the following trade agreements provides for the development of a single market among its members?

Suppose the nation of Arcadia produces only two goods, teapots and surfboards. If Arcadia produces only teapots, it can make 40 per day. If Arcadia produces only surfboards, it can make 60 per day. What is the opportunity cost of 1 teapot in Arcadia?

A production possibilities curve shows the combinations of products which can be produced in an economy which is fully employing and efficiently using its productive resources.

Table 18.1 Daily Output of Russia and Panama -Refer to Table 18.1. The opportunity cost of a glove in Panama is

What is dumping and why would firms engage in it?

The equilibrium price under an import quota is below the price that occurs with free trade.

What is the difference between comparative advantage and absolute advantage?

Figure 18.1 -Refer to Figure 18.1. The opportunity cost of bicycles in Canada is

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

Exporting nations often agree to voluntary export restraints in an attempt to

Suppose the nation of Alphonia was charged with dumping electric lawnmowers in the nation of Omegalon. The result of Omegalon imposing anti-dumping tariffs on electric lawnmowers manufactured in Alphonia would most likely be

Figure 18.3 -Refer to Figure 18.3. After trade and specialization begin, the maximum amount of scooters that Livonia can consume is

Figure 18.2 -Refer to Figure 18.2. The opportunity cost of producing spears in Macadamia is

The production possibilities curve represents the set of all

Figure 18.2 -Refer to Figure 18.2. After trade and specialization begin, the maximum amount of spears that Macadamia can consume is

What is a voluntary export restraint?

Which of the following benefits from a quota or VER?

Figure 18.1 -Refer to Figure 18.1. has a comparative disadvantage in bicycles and has a comparative disadvantage in hang gliders.

What are the rationales for protectionist policies?

Introduction: What Is Economics?

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nation's 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

Which of the following trade agreements provides for the development of a single market among its members?

Suppose the nation of Arcadia produces only two goods, teapots and surfboards. If Arcadia produces only teapots, it can make 40 per day. If Arcadia produces only surfboards, it can make 60 per day. What is the opportunity cost of 1 teapot in Arcadia?

A production possibilities curve shows the combinations of products which can be produced in an economy which is fully employing and efficiently using its productive resources.

Table 18.1 Daily Output of Russia and Panama -Refer to Table 18.1. The opportunity cost of a glove in Panama is

What is dumping and why would firms engage in it?

The equilibrium price under an import quota is below the price that occurs with free trade.

What is the difference between comparative advantage and absolute advantage?

Figure 18.1 -Refer to Figure 18.1. The opportunity cost of bicycles in Canada is

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

Exporting nations often agree to voluntary export restraints in an attempt to

Suppose the nation of Alphonia was charged with dumping electric lawnmowers in the nation of Omegalon. The result of Omegalon imposing anti-dumping tariffs on electric lawnmowers manufactured in Alphonia would most likely be

Figure 18.3 -Refer to Figure 18.3. After trade and specialization begin, the maximum amount of scooters that Livonia can consume is

Figure 18.2 -Refer to Figure 18.2. The opportunity cost of producing spears in Macadamia is

The production possibilities curve represents the set of all

Figure 18.2 -Refer to Figure 18.2. After trade and specialization begin, the maximum amount of spears that Macadamia can consume is

What is a voluntary export restraint?

Which of the following benefits from a quota or VER?

Figure 18.1 -Refer to Figure 18.1. ________ has a comparative disadvantage in bicycles and ________ has a comparative disadvantage in hang gliders.

What are the rationales for protectionist policies?

Introduction: What Is Economics?

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nation's 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

Figure 18.1 -Refer to Figure 18.1. has a comparative disadvantage in bicycles and has a comparative disadvantage in hang gliders.