Question 1

An import quota or tariff on French wine that raises the prices for wine will probably:

Accepted Answer

A)  hurt domestic wine drinkers but help domestic wineries, which will gain from the higher prices. 
B)  hurt both domestic wine drinkers and domestic wineries, but this will be more than offset by a reduction in driving fatalities. 
C)  hurt both domestic wine drinkers and domestic wine producers because of a reduction in competition. 
D)  hurt domestic wineries, which will lose business as a result of the higher prices. 
A)  hurt domestic wine drinkers but help domestic wineries, which will gain from the higher prices. 
B)  hurt both domestic wine drinkers and domestic wineries, but this will be more than offset by a reduction in driving fatalities. 
C)  hurt both domestic wine drinkers and domestic wine producers because of a reduction in competition. 
D)  hurt domestic wineries, which will lose business as a result of the higher prices.

Question 2

The race to the bottom scenario of global environmental degradation is explained roughly like this:

Accepted Answer

A)  Companies seek to reduce their costs of operations on plant and equipment design and this results in higher levels of pollution. 
B)  Companies seek the lowest market prices on products in order to gain market share, resulting in inferior goods and increased waste and pollution. 
C)  Profit-seeking multinational companies shift their production from countries with strong environmental standards to countries with weak standards, thus reducing their costs and increasing their profits. 
D)  Companies seek to influence environmental legislation standards are set to the lowest possible standards in the USA in order to maximize profits. 
A)  Companies seek to reduce their costs of operations on plant and equipment design and this results in higher levels of pollution. 
B)  Companies seek the lowest market prices on products in order to gain market share, resulting in inferior goods and increased waste and pollution. 
C)  Profit-seeking multinational companies shift their production from countries with strong environmental standards to countries with weak standards, thus reducing their costs and increasing their profits. 
D)  Companies seek to influence environmental legislation standards are set to the lowest possible standards in the USA in order to maximize profits.

Question 3

If Japan does not have a comparative advantage in producing rice, the consequences of adopting a Japanese policy reducing or eliminating imports of rice into the country would include:

Accepted Answer

A)  Japan will be able to consume a combination of rice and other goods beyond their domestic production possibilities curve. 
B)  the real incomes of Japanese rice producers would rise, but the real incomes of Japanese rice consumers would fall. 
C)  the real incomes of Japanese rice consumers would rise, but the real incomes of Japanese rice producers would fall. 
D)  the price of rice in Japan will fall. 
A)  Japan will be able to consume a combination of rice and other goods beyond their domestic production possibilities curve. 
B)  the real incomes of Japanese rice producers would rise, but the real incomes of Japanese rice consumers would fall. 
C)  the real incomes of Japanese rice consumers would rise, but the real incomes of Japanese rice producers would fall. 
D)  the price of rice in Japan will fall.

Question 4

Low-wage U.S. workers suffer from protectionism in all the industries that they don't work in, because:

Accepted Answer

A)  protectionism provides a barrier to entry to the job markets that the low-wage earners want entry to. 
B)  protectionism forces them to pay higher prices for basic necessities like clothing and food. 
C)  protectionism will encourage foreign workers to apply for American jobs. 
D)  protectionism will prevent them from applying for those jobs in other industries. 
A)  protectionism provides a barrier to entry to the job markets that the low-wage earners want entry to. 
B)  protectionism forces them to pay higher prices for basic necessities like clothing and food. 
C)  protectionism will encourage foreign workers to apply for American jobs. 
D)  protectionism will prevent them from applying for those jobs in other industries.

Question 5

What is the World Trade Organization and what is its mandate?

Accepted Answer

World Trade Organization. The GATT proce

Question 6

The acronym GATT stands for:

Accepted Answer

A)  General Association for Trade and Tariffs. 
B)  General Agreement on Tariffs and Trade. 
C)  General Accounting for Tariff and Trade. 
D)  General Association on Technology and Trade. 
A)  General Association for Trade and Tariffs. 
B)  General Agreement on Tariffs and Trade. 
C)  General Accounting for Tariff and Trade. 
D)  General Association on Technology and Trade.

Question 7

Which of the following is the best example of a quota?

Accepted Answer

A)  a tax placed on all small cars sold in the domestic market 
B)  a limit imposed on the number of men's suits that can be imported from a foreign country 
C)  a subsidy from the American government to domestic manufacturers of men's suits so they can compete more effectively with foreign producers of men's suits 
D)  a $100-per-car fee imposed on all small cars imported 
A)  a tax placed on all small cars sold in the domestic market 
B)  a limit imposed on the number of men's suits that can be imported from a foreign country 
C)  a subsidy from the American government to domestic manufacturers of men's suits so they can compete more effectively with foreign producers of men's suits 
D)  a $100-per-car fee imposed on all small cars imported

Question 8

An import quota does which of the following?

Accepted Answer

A)  decreases the price of the imported goods to consumers 
B)  increases the price of the domestic goods to consumers 
C)  redistributes income away from domestic producers of those products toward domestic producers of exports 
D)  both a and c 
A)  decreases the price of the imported goods to consumers 
B)  increases the price of the domestic goods to consumers 
C)  redistributes income away from domestic producers of those products toward domestic producers of exports 
D)  both a and c

Question 9

Politicians often argue for tariff increases in order to reduce the nation's dependence on imports. If tariffs are increased, the long-run effect is most likely to be:

Accepted Answer

A)  an increase in American imports, and a decrease in American exports. 
B)  an decrease in American imports, and an increase in American exports. 
C)  an increase in both American imports and exports. 
D)  a decrease in both American imports and exports. 
A)  an increase in American imports, and a decrease in American exports. 
B)  an decrease in American imports, and an increase in American exports. 
C)  an increase in both American imports and exports. 
D)  a decrease in both American imports and exports.

Question 10

Despite interlocking import quotas, tariffs, and nontariff barriers, the share of apparel sold in the United States that is imported rose from about _______ in 1999 to about _______ today.

Accepted Answer

A)  10%; 25% 
B)  25%; 50% 
C)  50%; 75% 
D)  75%; 90% 
A)  10%; 25% 
B)  25%; 50% 
C)  50%; 75% 
D)  75%; 90%

Question 11

Economists would say tariffs:

Accepted Answer

A)  protect domestic producers of exported goods. 
B)  limit voluntary exchanges. 
C)  protect foreign producers of goods. 
D)  protect domestic consumers of goods. 
A)  protect domestic producers of exported goods. 
B)  limit voluntary exchanges. 
C)  protect foreign producers of goods. 
D)  protect domestic consumers of goods.

Question 12

The United States national minimum wage is _______.

Accepted Answer

A)  $6.25/hour 
B)  $7.25/hour 
C)  $8.25/hour 
D)  $9.25/hour 
A)  $6.25/hour 
B)  $7.25/hour 
C)  $8.25/hour 
D)  $9.25/hour

Question 13

Tariffs are taxes imposed on _______.

Accepted Answer

A)  imported products 
B)  exported products 
C)  hazardous goods 
D)  surplus goods 
A)  imported products 
B)  exported products 
C)  hazardous goods 
D)  surplus goods

Question 14

Which of the following would be expected if the tariff on foreign-produced automobiles were increased?

Accepted Answer

A)  The domestic price of automobiles would fall. 
B)  The supply of foreign automobiles to the domestic market would be reduced, causing auto prices to rise. 
C)  The number of unemployed workers in the domestic automobile industry would rise. 
D)  The demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations. 
A)  The domestic price of automobiles would fall. 
B)  The supply of foreign automobiles to the domestic market would be reduced, causing auto prices to rise. 
C)  The number of unemployed workers in the domestic automobile industry would rise. 
D)  The demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations.

Question 15

The membership of the WTO includes about _______ nations.

Accepted Answer

A)  15 
B)  150 
C)  700 
D)  1500 
A)  15 
B)  150 
C)  700 
D)  1500

Question 16

"Block Imports-Save Jobs for Some Americans, Lose a Roughly Equal Number of Jobs for Other Americans, and Also Pay High Prices." Discuss this statement within the context of protectionism.

Accepted Answer

Why does it cost so much to save jobs th

Question 17

International trade is fundamentally a _______.

Accepted Answer

A)  win-lose situation 
B)  lose-lose situation 
C)  win-win situation 
D)  war which is won by the strongest 
A)  win-lose situation 
B)  lose-lose situation 
C)  win-win situation 
D)  war which is won by the strongest

Question 18

Tariffs result in a decrease in consumer surplus because:

Accepted Answer

A)  the price and the quantity consumed of the protected good increases. 
B)  the price and the quantity consumed of the protected good decreases. 
C)  the price of the protected good increases and quantity consumed decreases. 
D)  the price of the protected good decreases and quantity consumed increases. 
A)  the price and the quantity consumed of the protected good increases. 
B)  the price and the quantity consumed of the protected good decreases. 
C)  the price of the protected good increases and quantity consumed decreases. 
D)  the price of the protected good decreases and quantity consumed increases.

Question 19

A tariff differs from a quota in that a tariff is:

Accepted Answer

A)  a tax imposed on imports, whereas a quota is an absolute limit to the number of units of a good that can be imported. 
B)  a tax levied on exports, whereas a quota is a limit on the number of units of a good that can be exported. 
C)  levied on exports, whereas a quota is imposed on imports. 
D)  levied on imports, whereas a quota is imposed on exports. 
A)  a tax imposed on imports, whereas a quota is an absolute limit to the number of units of a good that can be imported. 
B)  a tax levied on exports, whereas a quota is a limit on the number of units of a good that can be exported. 
C)  levied on exports, whereas a quota is imposed on imports. 
D)  levied on imports, whereas a quota is imposed on exports.

Question 20

What is the race to the bottom scenario?

Accepted Answer

The race to the bottom scenario of globa

An import quota or tariff on French wine that raises the prices for wine will probably:

The race to the bottom scenario of global environmental degradation is explained roughly like this:

If Japan does not have a comparative advantage in producing rice, the consequences of adopting a Japanese policy reducing or eliminating imports of rice into the country would include:

Low-wage U.S. workers suffer from protectionism in all the industries that they don't work in, because:

What is the World Trade Organization and what is its mandate?

The acronym GATT stands for:

Which of the following is the best example of a quota?

An import quota does which of the following?

Politicians often argue for tariff increases in order to reduce the nation's dependence on imports. If tariffs are increased, the long-run effect is most likely to be:

Despite interlocking import quotas, tariffs, and nontariff barriers, the share of apparel sold in the United States that is imported rose from about _ in 1999 to about _ today.

Economists would say tariffs:

The United States national minimum wage is _______.

Tariffs are taxes imposed on _______.

Which of the following would be expected if the tariff on foreign-produced automobiles were increased?

The membership of the WTO includes about _______ nations.

"Block Imports-Save Jobs for Some Americans, Lose a Roughly Equal Number of Jobs for Other Americans, and Also Pay High Prices." Discuss this statement within the context of protectionism.

International trade is fundamentally a _______.

Tariffs result in a decrease in consumer surplus because:

A tariff differs from a quota in that a tariff is:

What is the race to the bottom scenario?

Welcome to Economics

Choice in a World of Scarcity

Demand and Supply

Labor and Financial Markets

Elasticity

Consumer Choices

Cost and Industry Structure

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Monopoly and Antitrust Policy

Environmental Protection and Negative Externalities

Positive Externalities and Public Goods

Poverty and Economic Inequality

Issues in Labor Markets: Unions, Discrimination, Immigration

Information, Risk, and Insurance

Financial Markets

Public Economy

International Trade

Filters

Exam 20: Globalization and Protectionism

An import quota or tariff on French wine that raises the prices for wine will probably:

The race to the bottom scenario of global environmental degradation is explained roughly like this:

If Japan does not have a comparative advantage in producing rice, the consequences of adopting a Japanese policy reducing or eliminating imports of rice into the country would include:

Low-wage U.S. workers suffer from protectionism in all the industries that they don't work in, because:

What is the World Trade Organization and what is its mandate?

The acronym GATT stands for:

Which of the following is the best example of a quota?

An import quota does which of the following?

Politicians often argue for tariff increases in order to reduce the nation's dependence on imports. If tariffs are increased, the long-run effect is most likely to be:

Despite interlocking import quotas, tariffs, and nontariff barriers, the share of apparel sold in the United States that is imported rose from about _______ in 1999 to about _______ today.

Economists would say tariffs:

The United States national minimum wage is _______.

Tariffs are taxes imposed on _______.

Which of the following would be expected if the tariff on foreign-produced automobiles were increased?

The membership of the WTO includes about _______ nations.

"Block Imports-Save Jobs for Some Americans, Lose a Roughly Equal Number of Jobs for Other Americans, and Also Pay High Prices." Discuss this statement within the context of protectionism.

International trade is fundamentally a _______.

Tariffs result in a decrease in consumer surplus because:

A tariff differs from a quota in that a tariff is:

What is the race to the bottom scenario?

Welcome to Economics

Choice in a World of Scarcity

Demand and Supply

Labor and Financial Markets

Elasticity

Consumer Choices

Cost and Industry Structure

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Monopoly and Antitrust Policy

Environmental Protection and Negative Externalities

Positive Externalities and Public Goods

Poverty and Economic Inequality

Issues in Labor Markets: Unions, Discrimination, Immigration

Information, Risk, and Insurance

Financial Markets

Public Economy

International Trade

Filters

Despite interlocking import quotas, tariffs, and nontariff barriers, the share of apparel sold in the United States that is imported rose from about _ in 1999 to about _ today.