Question 1

The ratio at which a country can trade its exports for imports from other countries is called

Accepted Answer

A) a trade barrier. 
B) the terms of trade. 
C) autarky. 
D) a free trade agreement. 
A) a trade barrier. 
B) the terms of trade. 
C) autarky. 
D) a free trade agreement.

Question 2

Figure 9-2
   
Suppose the U.S.government imposes a $0.40 per pound tariff on rice imports.Figure 9-2 shows the impact of this tariff.
-Refer to Figure 9-2.Without the tariff in place, the United States consumes

Accepted Answer

A) 9 million pounds of rice. 
B) 15 million pounds of rice. 
C) 31 million pounds of rice. 
D) 42 million pounds of rice. 
A) 9 million pounds of rice. 
B) 15 million pounds of rice. 
C) 31 million pounds of rice. 
D) 42 million pounds of rice.

Question 3

If Canada imports fishing poles from Mexico and Mexico imports bacon from Canada, which of the following would explain this pattern of trade?

Accepted Answer

A) Mexico has a lower opportunity cost of producing bacon than Canada and Mexico has a comparative advantage in producing fishing poles. 
B) The opportunity cost of producing fishing poles in Canada is higher than the opportunity cost of producing bacon in Mexico. 
C) Mexico must have an absolute advantage in producing fishing poles and Canada must have an absolute advantage in bacon. 
D) Mexico has a higher opportunity cost of producing fishing poles than Canada, and Canada has a higher opportunity cost of producing bacon. 
A) Mexico has a lower opportunity cost of producing bacon than Canada and Mexico has a comparative advantage in producing fishing poles. 
B) The opportunity cost of producing fishing poles in Canada is higher than the opportunity cost of producing bacon in Mexico. 
C) Mexico must have an absolute advantage in producing fishing poles and Canada must have an absolute advantage in bacon. 
D) Mexico has a higher opportunity cost of producing fishing poles than Canada, and Canada has a higher opportunity cost of producing bacon.

Question 4

________ is the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors.

Accepted Answer

A) Absolute advantage 
B) Specialization 
C) Autarky 
D) Comparative advantage 
A) Absolute advantage 
B) Specialization 
C) Autarky 
D) Comparative advantage

Question 5

________ raised average tariff rates by over 50 percent in the United States in 1930.

Accepted Answer

A) The GATT 
B) The WTO 
C) NAFTA 
D) The Smoot-Hawley Tariff 
A) The GATT 
B) The WTO 
C) NAFTA 
D) The Smoot-Hawley Tariff

Question 6

Protectionism refers to the use of trade barriers to shield domestic firms from foreign competition.

Accepted Answer

A) True 
 B)False

Question 7

Figure 9-3
   
Since 1953 the United States has imposed a quota to limit the imports of peanuts.Figure 9-3 illustrates the impact of the quota.
-Refer to Figure 9-3.What is the area of domestic producer surplus after the imposition of a quota?

Accepted Answer

A) B 
B) B + C 
C) B + E + I + J + M 
D) E + I + J + M 
A) B 
B) B + C 
C) B + E + I + J + M 
D) E + I + J + M

Question 8

Which of the following is the best example of a quota?

Accepted Answer

A) a subsidy from the U.S. government to domestic manufacturers of tires to enable them to compete more effectively with foreign producers 
B) a limit on the quantity of tires that can be imported from a foreign country 
C) a 40% fee imposed on all imported tires 
D) a tax placed on all tires sold in the domestic market to help offset the impact of lost jobs in the domestic tire industry 
A) a subsidy from the U.S. government to domestic manufacturers of tires to enable them to compete more effectively with foreign producers 
B) a limit on the quantity of tires that can be imported from a foreign country 
C) a 40% fee imposed on all imported tires 
D) a tax placed on all tires sold in the domestic market to help offset the impact of lost jobs in the domestic tire industry

The ratio at which a country can trade its exports for imports from other countries is called

Figure 9-2 Suppose the U.S.government imposes a $0.40 per pound tariff on rice imports.Figure 9-2 shows the impact of this tariff. -Refer to Figure 9-2.Without the tariff in place, the United States consumes

If Canada imports fishing poles from Mexico and Mexico imports bacon from Canada, which of the following would explain this pattern of trade?

________ is the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors.

________ raised average tariff rates by over 50 percent in the United States in 1930.

Protectionism refers to the use of trade barriers to shield domestic firms from foreign competition.

Figure 9-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts.Figure 9-3 illustrates the impact of the quota. -Refer to Figure 9-3.What is the area of domestic producer surplus after the imposition of a quota?

Which of the following is the best example of a quota?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Filters

Exam 9: Comparative Advantage and the Gains From International Trade

The ratio at which a country can trade its exports for imports from other countries is called

Figure 9-2 Suppose the U.S.government imposes a $0.40 per pound tariff on rice imports.Figure 9-2 shows the impact of this tariff. -Refer to Figure 9-2.Without the tariff in place, the United States consumes

If Canada imports fishing poles from Mexico and Mexico imports bacon from Canada, which of the following would explain this pattern of trade?

________ is the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors.

________ raised average tariff rates by over 50 percent in the United States in 1930.

Protectionism refers to the use of trade barriers to shield domestic firms from foreign competition.

Figure 9-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts.Figure 9-3 illustrates the impact of the quota. -Refer to Figure 9-3.What is the area of domestic producer surplus after the imposition of a quota?

Which of the following is the best example of a quota?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Filters