Question 1

The infant-industry argument about tariffs argues that:

Accepted Answer

A) it is unfair to levy tariffs on items intended for use by infants. 
B) tariffs should be levied on foreign products that compete with new domestic industries only in the short run. 
C) if a newly established domestic industry can survive in the short run, a tariff should be levied to protect it from foreign competition in the long run. 
D) permanent tariffs should be levied on foreign products that compete with those produced by newly established domestic industries. 
A) it is unfair to levy tariffs on items intended for use by infants. 
B) tariffs should be levied on foreign products that compete with new domestic industries only in the short run. 
C) if a newly established domestic industry can survive in the short run, a tariff should be levied to protect it from foreign competition in the long run. 
D) permanent tariffs should be levied on foreign products that compete with those produced by newly established domestic industries.

Question 2

An import quota on a product protects domestic industries by:

Accepted Answer

A) reducing the foreign supply to the domestic market and, thereby, raising the domestic price. 
B) increasing the foreign supply to the domestic market and, thereby, lowering the domestic price. 
C) increasing the domestic demand for the product and, thereby, increasing its price. 
D) providing the incentive for domestic producers to improve the efficiency of their operation and, thereby, reduce their per-unit costs of production. 
A) reducing the foreign supply to the domestic market and, thereby, raising the domestic price. 
B) increasing the foreign supply to the domestic market and, thereby, lowering the domestic price. 
C) increasing the domestic demand for the product and, thereby, increasing its price. 
D) providing the incentive for domestic producers to improve the efficiency of their operation and, thereby, reduce their per-unit costs of production.

Question 3

Which of the following is the correct name of the free-trade agreement between Mexico, the U.S., and Canada?

Accepted Answer

A) The American Free Trade Agreement (AFT
A) . 
B) The North American Free Trade Agreement (NAFT
A) . 
C) The Pacific Free Trade Agreement (PFT
A) . 
D) The Trans-American Free Trade Agreement (TAF
A) . 
A) The American Free Trade Agreement (AFT
A) . 
B) The North American Free Trade Agreement (NAFT
A) . 
C) The Pacific Free Trade Agreement (PFT
A) . 
D) The Trans-American Free Trade Agreement (TAF
A) .

Question 4

Which of the following statements is true ?

Accepted Answer

A) A tariff is a physical limit on the quantity of a good allowed to enter a country. 
B) An embargo is a tax on an imported good. 
C) A quota is a law that bars trade with another country. 
D) When a nation exports more than it imports it is running a balance of trade surplus. 
A) A tariff is a physical limit on the quantity of a good allowed to enter a country. 
B) An embargo is a tax on an imported good. 
C) A quota is a law that bars trade with another country. 
D) When a nation exports more than it imports it is running a balance of trade surplus.

Question 5

The balance of payments ____.

Accepted Answer

A) b and e 
B) is always zero 
C) with some nations is different than it is with others 
D) is negative when the nation runs a trade deficit 
E) can only be expanded when the government has foreign exchange reserves 
A) b and e 
B) is always zero 
C) with some nations is different than it is with others 
D) is negative when the nation runs a trade deficit 
E) can only be expanded when the government has foreign exchange reserves

Question 6

The North American Free Trade Agreement affects trade between:

Accepted Answer

A) the United States, Cuba, and Brazil. 
B) the United States, Canada, and Mexico. 
C) the United States, Puerto Rico, and Cuba. 
D) Brazil, Bolivia, Peru, and Columbia. 
E) China and the United States. 
A) the United States, Cuba, and Brazil. 
B) the United States, Canada, and Mexico. 
C) the United States, Puerto Rico, and Cuba. 
D) Brazil, Bolivia, Peru, and Columbia. 
E) China and the United States.

Question 7

A tax levied on imported goods is called a(n):

Accepted Answer

A) excise tax. 
B) quota. 
C) foreign profits tax. 
D) tariff. 
A) excise tax. 
B) quota. 
C) foreign profits tax. 
D) tariff.

Question 8

Which of the following provides the foundation of the case for free trade?

Accepted Answer

A) The law of diminishing marginal utility 
B) The anti-dumping argument 
C) The industrial diversity argument 
D) The theory of comparative advantage 
A) The law of diminishing marginal utility 
B) The anti-dumping argument 
C) The industrial diversity argument 
D) The theory of comparative advantage

The infant-industry argument about tariffs argues that:

An import quota on a product protects domestic industries by:

Which of the following is the correct name of the free-trade agreement between Mexico, the U.S., and Canada?

Which of the following statements is true ?

The balance of payments ____.

The North American Free Trade Agreement affects trade between:

A tax levied on imported goods is called a(n):

Which of the following provides the foundation of the case for free trade?

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Gross Domestic Product

Business Cycles and Unemployment

Inflation

The Keynesian Model

The Keynesian Model in Action

Aggregate Demand and Supply

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

The Phillips Curve and Expectations Theory

Economies in Transition

Growth and the Less-Developed Countries

Applying Graphs to Economics

Consumer Surplus, Producer Surplus, and Market Efficiency

the Self-Correcting Aggregate Demand and Supply Model

Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

Filters

Exam 18: International Trade and Finance

The infant-industry argument about tariffs argues that:

An import quota on a product protects domestic industries by:

Which of the following is the correct name of the free-trade agreement between Mexico, the U.S., and Canada?

Which of the following statements is true ?

The balance of payments ____.

The North American Free Trade Agreement affects trade between:

A tax levied on imported goods is called a(n):

Which of the following provides the foundation of the case for free trade?

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Gross Domestic Product

Business Cycles and Unemployment

Inflation

The Keynesian Model

The Keynesian Model in Action

Aggregate Demand and Supply

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

The Phillips Curve and Expectations Theory

Economies in Transition

Growth and the Less-Developed Countries

Applying Graphs to Economics

Consumer Surplus, Producer Surplus, and Market Efficiency

the Self-Correcting Aggregate Demand and Supply Model

Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

Filters