Question 1

Tariffs and import quotas both result in

Accepted Answer

A) lower levels of domestic production. 
B) the domestic government gaining revenue. 
C) lower levels of imports. 
D) higher levels of domestic consumption. 
E) an increase in demand. 
A) lower levels of domestic production. 
B) the domestic government gaining revenue. 
C) lower levels of imports. 
D) higher levels of domestic consumption. 
E) an increase in demand.

Question 2

A tariff imposed by Canada on Japanese cars ________ the price of cars in Canada and ________ the quantity of Japanese cars imported into Canada.

Accepted Answer

A) raises; increases 
B) raises; decreases 
C) lowers; increases 
D) lowers; decreases 
E) raises; does not change 
A) raises; increases 
B) raises; decreases 
C) lowers; increases 
D) lowers; decreases 
E) raises; does not change

Question 3

Refer to the figure below to answer the following questions.
   
The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. Canada imposes a tariff on imported shirts of $4 per shirt.
Figure 31.3.1
-Refer to Figure 31.3.1. The tariff ________ the domestic production of shirts in Canada by ________ per year.

Accepted Answer

A) increases; 8 million 
B) decreases; 16 million 
C) increases; 4 million 
D) decreases; 8 million 
E) increases; 24 million 
A) increases; 8 million 
B) decreases; 16 million 
C) increases; 4 million 
D) decreases; 8 million 
E) increases; 24 million

Question 4

A tariff ________ the domestic price of the good and an import quota ________ the domestic price of the good.

Accepted Answer

A) lowers; lowers 
B) lowers; raises 
C) raises; lowers 
D) raises; raises 
E) does not change; does not change 
A) lowers; lowers 
B) lowers; raises 
C) raises; lowers 
D) raises; raises 
E) does not change; does not change

Question 5

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. 
E) prevents rich countries from exploiting poor countries is true. 
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. 
E) prevents rich countries from exploiting poor countries is true.

Question 6

Usually the removal of trade barriers affecting a particular good benefits ________ people domestically, each of whom gains a ________.

Accepted Answer

A) a few; little 
B) a few; lot 
C) many; little 
D) many; lot 
E) We can't determine the relative benefits from the removal of trade barriers. 
A) a few; little 
B) a few; lot 
C) many; little 
D) many; lot 
E) We can't determine the relative benefits from the removal of trade barriers.

Tariffs and import quotas both result in

A tariff imposed by Canada on Japanese cars the price of cars in Canada and the quantity of Japanese cars imported into Canada.

A tariff the domestic price of the good and an import quota the domestic price of the good.

The argument that protection

Usually the removal of trade barriers affecting a particular good benefits people domestically, each of whom gains a .

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Governments Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

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 31: Macro Only: International Trade Policy

Tariffs and import quotas both result in

A tariff imposed by Canada on Japanese cars ________ the price of cars in Canada and ________ the quantity of Japanese cars imported into Canada.

A tariff ________ the domestic price of the good and an import quota ________ the domestic price of the good.

The argument that protection

Usually the removal of trade barriers affecting a particular good benefits ________ people domestically, each of whom gains a ________.

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Governments Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

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

A tariff imposed by Canada on Japanese cars the price of cars in Canada and the quantity of Japanese cars imported into Canada.

A tariff the domestic price of the good and an import quota the domestic price of the good.

Usually the removal of trade barriers affecting a particular good benefits people domestically, each of whom gains a .