Question 1

A tariff is a tax on ____ goods that is designed to ____.

Accepted Answer

A)  exported; protect domestic industries 
B)  exported; hurt foreign industries 
C)  imported; made domestic consumers pay more 
D)  imported; protect domestic industries 
A)  exported; protect domestic industries 
B)  exported; hurt foreign industries 
C)  imported; made domestic consumers pay more 
D)  imported; protect domestic industries

Question 2

Exhibit 15-1 Production possibilities curves
 
In Exhibit 15-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. If both countries specialize in one good and trade for the other, :

Accepted Answer

A)  Nabia and Pada will be able to consume at a point to the right of their respective production possibilities curves. 
B)  Nabia will be able to consume, at the most, the combination represented by point A. 
C)  Pada will be able to consume, at the most, the combination represented by point B. 
D)  the citizens of Nabia will consume only corn and the citizens of Pada will consume only wheat. 
A)  Nabia and Pada will be able to consume at a point to the right of their respective production possibilities curves. 
B)  Nabia will be able to consume, at the most, the combination represented by point A. 
C)  Pada will be able to consume, at the most, the combination represented by point B. 
D)  the citizens of Nabia will consume only corn and the citizens of Pada will consume only wheat.

Question 3

Exhibit 15-3 Potatoes and wheat output (tons per day)
 
If each nation in Exhibit 15-3 specializes in producing the good for which it has a comparative advantage, then:

Accepted Answer

A)  Ireland would produce neither potatoes or wheat. 
B)  the United States would produce both potatoes and wheat. 
C)  the United States would produce potatoes. 
D)  Ireland would produce potatoes. 
A)  Ireland would produce neither potatoes or wheat. 
B)  the United States would produce both potatoes and wheat. 
C)  the United States would produce potatoes. 
D)  Ireland would produce potatoes.

Question 4

Tariff rates on products imported into the United States:

Accepted Answer

A)  were prohibited by the Constitution. 
B)  have dropped substantially over the past 50 years. 
C)  reached an all time high in 1996. 
D)  have steadily increased since 1920. 
A)  were prohibited by the Constitution. 
B)  have dropped substantially over the past 50 years. 
C)  reached an all time high in 1996. 
D)  have steadily increased since 1920.

Question 5

The argument that import restrictions save jobs and promote prosperity fails to recognize that:

Accepted Answer

A)  there are no secondary effects of import restrictions. 
B)  import restrictions will lower prices in the protected industries. 
C)  import restrictions cannot create jobs in any industries. 
D)  U.S. imports provide people in other countries with the dollars power required for the purchase of U.S. exports. 
A)  there are no secondary effects of import restrictions. 
B)  import restrictions will lower prices in the protected industries. 
C)  import restrictions cannot create jobs in any industries. 
D)  U.S. imports provide people in other countries with the dollars power required for the purchase of U.S. exports.

Question 6

Exhibit 15-1 Production possibilities curves
 
In Exhibit 15-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. If these two nations trade, Nabia should specialize in the production of:

Accepted Answer

A)  corn. 
B)  corn and wheat. 
C)  wheat. 
D)  neither product since Pada has the absolute advantage in the production of both. 
A)  corn. 
B)  corn and wheat. 
C)  wheat. 
D)  neither product since Pada has the absolute advantage in the production of both.

Question 7

If the United States were to adopt a policy of free trade with European countries and Japan, this policy would:

Accepted Answer

A)  help the United States and hurt the other countries because the United States has a larger population. 
B)  help all of the countries involved because every country would have a comparative advantage in the production of some goods. 
C)  hurt all of the countries involved because all the countries are capable of producing anything that could be produced in one of the other countries. 
D)  help the United States and hurt the other countries because the United States has more natural resources than the other countries. 
A)  help the United States and hurt the other countries because the United States has a larger population. 
B)  help all of the countries involved because every country would have a comparative advantage in the production of some goods. 
C)  hurt all of the countries involved because all the countries are capable of producing anything that could be produced in one of the other countries. 
D)  help the United States and hurt the other countries because the United States has more natural resources than the other countries.

A tariff is a tax on goods that is designed to .

Exhibit 15-1 Production possibilities curves In Exhibit 15-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. If both countries specialize in one good and trade for the other, :

Exhibit 15-3 Potatoes and wheat output (tons per day) If each nation in Exhibit 15-3 specializes in producing the good for which it has a comparative advantage, then:

Tariff rates on products imported into the United States:

The argument that import restrictions save jobs and promote prosperity fails to recognize that:

Exhibit 15-1 Production possibilities curves In Exhibit 15-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. If these two nations trade, Nabia should specialize in the production of:

If the United States were to adopt a policy of free trade with European countries and Japan, this policy would:

Introducing the Economic Way of Thinking

Production Possibilities Opportunity Cost and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution Poverty and Discrimination

Antitrust and Regulation

Environmental Economics

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

Understanding Direct and Inverse Relationships between Variables

Filters

Exam 28: International Trade and Finance

A tariff is a tax on ____ goods that is designed to ____.

Exhibit 15-1 Production possibilities curves In Exhibit 15-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. If both countries specialize in one good and trade for the other, :

Exhibit 15-3 Potatoes and wheat output (tons per day) If each nation in Exhibit 15-3 specializes in producing the good for which it has a comparative advantage, then:

Tariff rates on products imported into the United States:

The argument that import restrictions save jobs and promote prosperity fails to recognize that:

Exhibit 15-1 Production possibilities curves In Exhibit 15-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. If these two nations trade, Nabia should specialize in the production of:

If the United States were to adopt a policy of free trade with European countries and Japan, this policy would:

Introducing the Economic Way of Thinking

Production Possibilities Opportunity Cost and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution Poverty and Discrimination

Antitrust and Regulation

Environmental Economics

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

Understanding Direct and Inverse Relationships between Variables

Filters

A tariff is a tax on goods that is designed to .