Question 1

Suppose the world price of a good is $4. Based on the table below, the country will

Accepted Answer

A)  import 20 units. 
B)  export 20 units. 
C)  import 10 units. 
D)  export 10 units. 
A)  import 20 units. 
B)  export 20 units. 
C)  import 10 units. 
D)  export 10 units.

Question 2

In 2013 the United States was considering imposing a tariff on solar panels imported from China. Which of the following groups would gain from this tariff?
I. U.S. consumers of solar panels
II. U.S. producers of solar panels
III. Chinese producers of solar panels

Accepted Answer

A)  I only 
B)  I and II only 
C)  II only 
D)  I and III only 
A)  I only 
B)  I and II only 
C)  II only 
D)  I and III only

Question 3

The argument that protection

Accepted Answer

A)  penalizes poor environmental standards is true. 
B)  allows us to compete with cheap foreign wages is true. 
C)  is necessary for infant industries is true. 
D)  saves jobs is flawed. 
A)  penalizes poor environmental standards is true. 
B)  allows us to compete with cheap foreign wages is true. 
C)  is necessary for infant industries is true. 
D)  saves jobs is flawed.

Question 4

An import quota is

Accepted Answer

A)  a tariff that is a fixed percentage of the price of a good. 
B)  a tariff that is a fixed dollar amount per unit of a good. 
C)  an agreed upon price for a good to be imported at a specified future date. 
D)  a restriction that specifies the maximum amount of a good that may be imported. 
A)  a tariff that is a fixed percentage of the price of a good. 
B)  a tariff that is a fixed dollar amount per unit of a good. 
C)  an agreed upon price for a good to be imported at a specified future date. 
D)  a restriction that specifies the maximum amount of a good that may be imported.

Question 5

Who benefits from a tariff on a good?

Accepted Answer

A)  domestic consumers of the good 
B)  foreign governments 
C)  domestic producers of the good 
D)  foreign producers of the good 
A)  domestic consumers of the good 
B)  foreign governments 
C)  domestic producers of the good 
D)  foreign producers of the good

Question 6

________ gain from exports and ________ lose from exports.

Accepted Answer

A)  Domestic consumers; the domestic government 
B)  Domestic consumers; domestic producers 
C)  Domestic producers; the domestic government 
D)  Domestic producers; domestic consumers 
A)  Domestic consumers; the domestic government 
B)  Domestic consumers; domestic producers 
C)  Domestic producers; the domestic government 
D)  Domestic producers; domestic consumers

Question 7

During 2005-2006 Europe imported more than $70 million worth of U.S. long-grain rice. In 2006, the European Union threatened to restrict imports of long-grain rice because traces of genetically modified rice were found mixed in to commercial supplies. What would NOT be an effect in the European rice market if U.S. imports were banned?

Accepted Answer

A)  There would be an increase in long-grain rice consumption. 
B)  There would be an increase in European rice production. 
C)  The price of long-grain rice would increase. 
D)  The quantity of long-grain rice imports would decrease. 
A)  There would be an increase in long-grain rice consumption. 
B)  There would be an increase in European rice production. 
C)  The price of long-grain rice would increase. 
D)  The quantity of long-grain rice imports would decrease.

Question 8

Selling a product in a foreign nation at a price less than its cost of production is called

Accepted Answer

A)  infant-industry exploitation. 
B)  absolute advantage. 
C)  dumping. 
D)  net exporting. 
A)  infant-industry exploitation. 
B)  absolute advantage. 
C)  dumping. 
D)  net exporting.

Question 9

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

Accepted Answer

A)  increase; increase 
B)  increase; decrease 
C)  decrease; increase 
D)  decrease; decrease 
A)  increase; increase 
B)  increase; decrease 
C)  decrease; increase 
D)  decrease; decrease

Question 10

If the United States imposes a tariff on imported steel, the tariff will

Accepted Answer

A)  raise the U.S. price of imported steel. 
B)  decrease the U.S. production of steel. 
C)  increase the total U.S. consumption of steel. 
D)  decrease employment in the U.S. steel industry. 
A)  raise the U.S. price of imported steel. 
B)  decrease the U.S. production of steel. 
C)  increase the total U.S. consumption of steel. 
D)  decrease employment in the U.S. steel industry.

Question 11

A tariff hurts

Accepted Answer

A)  the government by decreasing its revenue. 
B)  domestic producers who can't compete with cheaper imports. 
C)  consumers who will pay more for the imported good. 
D)  All of the above answers are correct. 
A)  the government by decreasing its revenue. 
B)  domestic producers who can't compete with cheaper imports. 
C)  consumers who will pay more for the imported good. 
D)  All of the above answers are correct.

Question 12

During 2005-2006 Europe imported more than $70 million worth of U.S. long-grain rice. How is the gain from trade distributed?

Accepted Answer

A)  European rice consumers gain from trade. 
B)  There is no gain from trade. 
C)  European rice producers gain from trade. 
D)  American rice consumers gain from trade. 
A)  European rice consumers gain from trade. 
B)  There is no gain from trade. 
C)  European rice producers gain from trade. 
D)  American rice consumers gain from trade.

Question 13

If the United States imposes a tariff of $1 per imported shirt, the higher tariff

Accepted Answer

A)  raises the price of a shirt to U.S. consumers. 
B)  benefits U.S. shirt consumers. 
C)  increases imports of shirts into the United States. 
D)  none of the above. 
A)  raises the price of a shirt to U.S. consumers. 
B)  benefits U.S. shirt consumers. 
C)  increases imports of shirts into the United States. 
D)  none of the above.

Question 14

Using calculations of the cost to Americans per job saved in protected industries, it can be concluded that

Accepted Answer

A)  import quotas are an efficient way to redistribute income. 
B)  each job saved is worth more than the cost imposed on consumers per job saved. 
C)  each job saved is worth less than the cost imposed on consumers per job saved. 
D)  tariffs are an efficient way to redistribute income to disadvantaged groups. 
A)  import quotas are an efficient way to redistribute income. 
B)  each job saved is worth more than the cost imposed on consumers per job saved. 
C)  each job saved is worth less than the cost imposed on consumers per job saved. 
D)  tariffs are an efficient way to redistribute income to disadvantaged groups.

Question 15

Import quotas

Accepted Answer

A)  encourage freer trade. 
B)  are a tax on an imported good. 
C)  set the number of units of a good that can be imported. 
D)  set the minimum percentage of the value of a good that can consist of imported components. 
A)  encourage freer trade. 
B)  are a tax on an imported good. 
C)  set the number of units of a good that can be imported. 
D)  set the minimum percentage of the value of a good that can consist of imported components.

Question 16

Suppose the country of Mooland imposes tariffs on imported beef from the country of Aqualand. As a result of the tariffs, the

Accepted Answer

A)  price of beef in Mooland falls. 
B)  quantity of beef exported by Mooland increases. 
C)  quantity of beef imported by Mooland decreases. 
D)  quantity of beef imported by Mooland increases. 
A)  price of beef in Mooland falls. 
B)  quantity of beef exported by Mooland increases. 
C)  quantity of beef imported by Mooland decreases. 
D)  quantity of beef imported by Mooland increases.

Question 17

An assumption behind the infant-industry argument for tariff protection is that

Accepted Answer

A)  foreign competitors are selling output below average cost. 
B)  the domestic industry will be facing an upward adjustment in its average cost. 
C)  the domestic industry will eventually gain a comparative advantage in producing the good. 
D)  the market needs additional competition to satisfy consumer demand. 
A)  foreign competitors are selling output below average cost. 
B)  the domestic industry will be facing an upward adjustment in its average cost. 
C)  the domestic industry will eventually gain a comparative advantage in producing the good. 
D)  the market needs additional competition to satisfy consumer demand.

Question 18

Which of the following statements about U.S. international trade in 2016 is CORRECT?

Accepted Answer

A)  The value of U.S. exports exceeded the value of U.S. imports. 
B)  The value of U.S. exports was about 33 percent of the value of total U.S. production. 
C)  The United States imported only goods. 
D)  The United States was the world's largest trader. 
A)  The value of U.S. exports exceeded the value of U.S. imports. 
B)  The value of U.S. exports was about 33 percent of the value of total U.S. production. 
C)  The United States imported only goods. 
D)  The United States was the world's largest trader.

Question 19

A U.S. tariff on textiles would ________ U.S. prices on clothing and ________ the number of jobs in the U.S. textile industry.

Accepted Answer

A)  reduce; decrease 
B)  reduce; increase 
C)  raise; decrease 
D)  raise; increase 
A)  reduce; decrease 
B)  reduce; increase 
C)  raise; decrease 
D)  raise; increase

Question 20

As a result of an increase in tariffs, imports decrease and government revenue increases.

Accepted Answer

A) True 
 B)False

Suppose the world price of a good is $4. Based on the table below, the country will

In 2013 the United States was considering imposing a tariff on solar panels imported from China. Which of the following groups would gain from this tariff? I. U.S. consumers of solar panels II. U.S. producers of solar panels III. Chinese producers of solar panels

The argument that protection

An import quota is

Who benefits from a tariff on a good?

gain from exports and lose from exports.

Selling a product in a foreign nation at a price less than its cost of production is called

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

If the United States imposes a tariff on imported steel, the tariff will

A tariff hurts

During 2005-2006 Europe imported more than $70 million worth of U.S. long-grain rice. How is the gain from trade distributed?

If the United States imposes a tariff of $1 per imported shirt, the higher tariff

Using calculations of the cost to Americans per job saved in protected industries, it can be concluded that

Import quotas

Suppose the country of Mooland imposes tariffs on imported beef from the country of Aqualand. As a result of the tariffs, the

An assumption behind the infant-industry argument for tariff protection is that

Which of the following statements about U.S. international trade in 2016 is CORRECT?

A U.S. tariff on textiles would U.S. prices on clothing and the number of jobs in the U.S. textile industry.

As a result of an increase in tariffs, imports decrease and government revenue increases.

What Is Economics

The Economic Problem

Demand and Supply

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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

Filters

Exam 15: International Trade Policy

Suppose the world price of a good is $4. Based on the table below, the country will

In 2013 the United States was considering imposing a tariff on solar panels imported from China. Which of the following groups would gain from this tariff? I. U.S. consumers of solar panels II. U.S. producers of solar panels III. Chinese producers of solar panels

The argument that protection

An import quota is

Who benefits from a tariff on a good?

________ gain from exports and ________ lose from exports.

Selling a product in a foreign nation at a price less than its cost of production is called

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

If the United States imposes a tariff on imported steel, the tariff will

A tariff hurts

During 2005-2006 Europe imported more than $70 million worth of U.S. long-grain rice. How is the gain from trade distributed?

If the United States imposes a tariff of $1 per imported shirt, the higher tariff

Using calculations of the cost to Americans per job saved in protected industries, it can be concluded that

Import quotas

Suppose the country of Mooland imposes tariffs on imported beef from the country of Aqualand. As a result of the tariffs, the

An assumption behind the infant-industry argument for tariff protection is that

Which of the following statements about U.S. international trade in 2016 is CORRECT?

A U.S. tariff on textiles would ________ U.S. prices on clothing and ________ the number of jobs in the U.S. textile industry.

As a result of an increase in tariffs, imports decrease and government revenue increases.

What Is Economics

The Economic Problem

Demand and Supply

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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

Filters

gain from exports and lose from exports.

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

A U.S. tariff on textiles would U.S. prices on clothing and the number of jobs in the U.S. textile industry.