Question 1

When does the domestic government gain the MOST revenue?

Accepted Answer

A)  when it imposes a tariff 
B)  when it imposes an import quota 
C)  when it negotiates a voluntary export restraint 
D)  The amount of revenue it gains is the same with a tariff and a voluntary export restraint. 
A)  when it imposes a tariff 
B)  when it imposes an import quota 
C)  when it negotiates a voluntary export restraint 
D)  The amount of revenue it gains is the same with a tariff and a voluntary export restraint.

Question 2

In 2008, Agriculture Secretary Ed Schafer announced that Chile's Livestock and Agricultural Service approved the U.S. inspection, control and certification systems for poultry, allowing these products to enter the Chilean market. The effect of this change in Chilean policy in the Chilean poultry market is to

Accepted Answer

A)  increase Chilean consumer surplus. 
B)  increase Chilean producer surplus. 
C)  decrease Chilean total surplus. 
D)  have no effect in the Chilean poultry market. 
A)  increase Chilean consumer surplus. 
B)  increase Chilean producer surplus. 
C)  decrease Chilean total surplus. 
D)  have no effect in the Chilean poultry market.

Question 3

Comparative advantage implies that a country will

Accepted Answer

A)  import those goods in which the country has a comparative advantage. 
B)  export those goods in which the country has a comparative advantage. 
C)  find it difficult to conclude free trade agreements with other nations. 
D)  export goods produced by domestic industries with low wages relative to its trading partners. 
A)  import those goods in which the country has a comparative advantage. 
B)  export those goods in which the country has a comparative advantage. 
C)  find it difficult to conclude free trade agreements with other nations. 
D)  export goods produced by domestic industries with low wages relative to its trading partners.

Question 4

The figure shows the market for shirts in the United States, where D is the U.S demand curve and S is the U.S. supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt.
-In the figure above, the U.S. government's revenue from the tariff is

Accepted Answer

A)  $64 million. 
B)  $32 million. 
C)  $128 million. 
D)  $48 million. 
A)  $64 million. 
B)  $32 million. 
C)  $128 million. 
D)  $48 million.

Question 5

The average tariff rate imposed by the United States on imported goods

Accepted Answer

A)  has generally increased over the past 60 years. 
B)  has generally decreased over the past 60 years. 
C)  peaked in 1990. 
D)  peaked in 1980. 
A)  has generally increased over the past 60 years. 
B)  has generally decreased over the past 60 years. 
C)  peaked in 1990. 
D)  peaked in 1980.

When does the domestic government gain the MOST revenue?

Comparative advantage implies that a country will

The figure shows the market for shirts in the United States, where D is the U.S demand curve and S is the U.S. supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt. -In the figure above, the U.S. government's revenue from the tariff is

The average tariff rate imposed by the United States on imported goods

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

Exam 7: Global Markets in Action

When does the domestic government gain the MOST revenue?

Comparative advantage implies that a country will

The figure shows the market for shirts in the United States, where D is the U.S demand curve and S is the U.S. supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt. -In the figure above, the U.S. government's revenue from the tariff is

The average tariff rate imposed by the United States on imported goods

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters