Question 1

After a tariff is imposed on a good, the price of the good

Accepted Answer

A)  does not change. 
B)  falls. 
C)  rises. 
D)  rises only if the domestic demand for the good does not change. 
E)  might rise, fall, or not change depending on whether the government did or did not simultaneously impose a quota. 
A)  does not change. 
B)  falls. 
C)  rises. 
D)  rises only if the domestic demand for the good does not change. 
E)  might rise, fall, or not change depending on whether the government did or did not simultaneously impose a quota.

Question 2

In 2002, President Bush imposed a tariff on imported steel.He did so in response to rent seeking by

Accepted Answer

A)  domestic steel consumers. 
B)  domestic steel producers. 
C)  foreign steel consumers. 
D)  foreign steel producers. 
E)  foreign politicians. 
A)  domestic steel consumers. 
B)  domestic steel producers. 
C)  foreign steel consumers. 
D)  foreign steel producers. 
E)  foreign politicians.

Question 3

What is the national security argument for restricting international trade?
 What is its flaw?

Accepted Answer

The national security argument is that t

Question 4

-The above figure shows the U.S.market for wheat. With international trade, the United States exports ________ of wheat.

Accepted Answer

A)  300,000 tons 
B)  500,000 tons 
C)  700,000 tons 
D)  400,000 tons 
E)  None of the above answers are correct because the United States imports wheat. 
A)  300,000 tons 
B)  500,000 tons 
C)  700,000 tons 
D)  400,000 tons 
E)  None of the above answers are correct because the United States imports wheat.

Question 5

A tax on a good that is imposed by the importing country is called a

Accepted Answer

A)  tariff. 
B)  nontariff barrier. 
C)  quantitative restriction. 
D)  licensing regulation. 
E)  trade constraint. 
A)  tariff. 
B)  nontariff barrier. 
C)  quantitative restriction. 
D)  licensing regulation. 
E)  trade constraint.

Question 6

Looking at the average tariff rate in the United States since 1930, we see that

Accepted Answer

A)  at first tariffs declined, but have recently risen. 
B)  tariffs have trended downward for most of the period. 
C)  tariff levels have remained high, at over 50 percent throughout the period. 
D)  while we talk about free trade, tariff levels have risen over the last 30 years. 
E)  tariffs were made illegal in the United States in 1955. 
A)  at first tariffs declined, but have recently risen. 
B)  tariffs have trended downward for most of the period. 
C)  tariff levels have remained high, at over 50 percent throughout the period. 
D)  while we talk about free trade, tariff levels have risen over the last 30 years. 
E)  tariffs were made illegal in the United States in 1955.

Question 7

A country exports a good if

Accepted Answer

A)  it has a high opportunity cost of production. 
B)  the world price of the good is below the country's no-trade equilibrium price. 
C)  the world price of the good is above the country's no-trade equilibrium price. 
D)  the quantity demanded of the good in the country is greater than the quantity supplied at the world price. 
E)  it cannot import the good. 
A)  it has a high opportunity cost of production. 
B)  the world price of the good is below the country's no-trade equilibrium price. 
C)  the world price of the good is above the country's no-trade equilibrium price. 
D)  the quantity demanded of the good in the country is greater than the quantity supplied at the world price. 
E)  it cannot import the good.

Question 8

When a nation exports a good or service, employment in that industry

Accepted Answer

A)  decreases. 
B)  stays the same. 
C)  increases. 
D)  might change, but more information about what else the country exports is needed to determine if employment increases, decreases, or does not change. 
E)  might change, but more information about what the country imports is needed to determine if employment increases, decreases, or does not change. 
A)  decreases. 
B)  stays the same. 
C)  increases. 
D)  might change, but more information about what else the country exports is needed to determine if employment increases, decreases, or does not change. 
E)  might change, but more information about what the country imports is needed to determine if employment increases, decreases, or does not change.

Question 9

While high-paid American workers fear competition with low-paid foreign workers, low-paid foreign workers fear competition with high-paid American workers.Why?

Accepted Answer

A)  It is completely irrational and unfounded. 
B)  Because America has such a large market it can protect its workers. 
C)  Because high wages reflect high worker productivity and the low-paid foreign workers are not as productive. 
D)  Because high wages are the result of extensive tariff and other trade restrictions. 
E)  Because high wages mean that U.S.workers can buy more goods and services. 
A)  It is completely irrational and unfounded. 
B)  Because America has such a large market it can protect its workers. 
C)  Because high wages reflect high worker productivity and the low-paid foreign workers are not as productive. 
D)  Because high wages are the result of extensive tariff and other trade restrictions. 
E)  Because high wages mean that U.S.workers can buy more goods and services.

Question 10

Goods and services that the United States sells to other nations are called

Accepted Answer

A)  exports. 
B)  imports. 
C)  bartered goods. 
D)  exchanges. 
E)  world goods. 
A)  exports. 
B)  imports. 
C)  bartered goods. 
D)  exchanges. 
E)  world goods.

Question 11

The figure above shows the U.S.market for airplanes, where SUS is the domestic supply curve and DUS is the domestic demand curve.The United States trades freely with the rest of the world.The world price of an airplane is $150 million.
-In the figure above, U.S.consumers buy ________ airplanes per year at ________ million per airplane.

Accepted Answer

A)  200; $150 
B)  400; $100 
C)  700; $150 
D)  400; $150 
E)  200; $100 
A)  200; $150 
B)  400; $100 
C)  700; $150 
D)  400; $150 
E)  200; $100

Question 12

The ________ are hurt by importing a good.

Accepted Answer

A)  domestic consumers of the good 
B)  domestic producers of the good 
C)  domestic governments 
D)  foreign producers of the good 
E)  foreign governments 
A)  domestic consumers of the good 
B)  domestic producers of the good 
C)  domestic governments 
D)  foreign producers of the good 
E)  foreign governments

Question 13

Briefly define a tariff and a quota.Do any of these methods restrict trade without harming domestic consumers?

Accepted Answer

Governments restrict trade through the u

Question 14

A tariff is a tax

Accepted Answer

A)  on an exported good. 
B)  on an imported good. 
C)  imposed on all traded goods. 
D)  imposed on people's income. 
E)  imposed on the difference between the value of the goods a firm imports and the value of the goods it exports. 
A)  on an exported good. 
B)  on an imported good. 
C)  imposed on all traded goods. 
D)  imposed on people's income. 
E)  imposed on the difference between the value of the goods a firm imports and the value of the goods it exports.

Question 15

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Price } \
\text { (dollars per unit) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded Quantity supplied } \
\text { (units per day) }
\end{array} & \begin{array} { c } 
\text { (units per day) }
\end{array} \
\hline 40 & 22 & 14 \
50 & 21 & 15 \
60 & 20 & 16 \
70 & 19 & 17 \
80 & 18 & 18 \
90 & 17 & 19
\end{array}$$
-The table above gives the domestic demand and supply schedules for a good.Suppose the world price of the good is $40 and the government imposes a $20 per unit tariff.How much will the government collect as tariff revenue?

Accepted Answer

A)  $160 
B)  $320 
C)  $80 
D)  $240 
E)  $360 
A)  $160 
B)  $320 
C)  $80 
D)  $240 
E)  $360

Question 16

When a nation exports a good or service in which it has a comparative advantage, production of the good or service

Accepted Answer

A)  decreases. 
B)  stays the same. 
C)  increases. 
D)  might change, but more information about what the country imports is needed to determine if production increases, decreases, or does not change. 
E)  might change, but more information about what else the country exports is needed to determine if production increases, decreases, or does not change. 
A)  decreases. 
B)  stays the same. 
C)  increases. 
D)  might change, but more information about what the country imports is needed to determine if production increases, decreases, or does not change. 
E)  might change, but more information about what else the country exports is needed to determine if production increases, decreases, or does not change.

Question 17

If the United States imports purses, then the quantity of purses produced in the United States will ________ and the quantity of purses purchased by consumers in the United States will ________.

Accepted Answer

A)  increase; increase 
B)  increase; decrease 
C)  decrease; increase 
D)  decrease; decrease 
E)  not change; increase 
A)  increase; increase 
B)  increase; decrease 
C)  decrease; increase 
D)  decrease; decrease 
E)  not change; increase

Question 18

The United States exports

Accepted Answer

A)  goods only. 
B)  services only. 
C)  manufactured goods only. 
D)  goods and services. 
E)  only agricultural products and high-tech goods. 
A)  goods only. 
B)  services only. 
C)  manufactured goods only. 
D)  goods and services. 
E)  only agricultural products and high-tech goods.

Question 19

The argument that it is necessary to protect a new industry to enable it to grow into a mature industry that can compete in world markets is known as the

Accepted Answer

A)  national security argument. 
B)  diversity argument. 
C)  infant-industry argument. 
D)  environmental protection argument. 
E)  national youth protection argument. 
A)  national security argument. 
B)  diversity argument. 
C)  infant-industry argument. 
D)  environmental protection argument. 
E)  national youth protection argument.

Question 20

Dumping is defined as the situation in which

Accepted Answer

A)  domestic producers sell a product at prices below the cost of production. 
B)  foreign producers sell a product at a price below the cost of production. 
C)  foreign producers sell a product at a price above a fair level. 
D)  domestic producers cut production to drive up domestic prices. 
E)  domestic producers are protected by tariffs. 
A)  domestic producers sell a product at prices below the cost of production. 
B)  foreign producers sell a product at a price below the cost of production. 
C)  foreign producers sell a product at a price above a fair level. 
D)  domestic producers cut production to drive up domestic prices. 
E)  domestic producers are protected by tariffs.

After a tariff is imposed on a good, the price of the good

In 2002, President Bush imposed a tariff on imported steel.He did so in response to rent seeking by

What is the national security argument for restricting international trade? What is its flaw?

-The above figure shows the U.S.market for wheat. With international trade, the United States exports ________ of wheat.

A tax on a good that is imposed by the importing country is called a

Looking at the average tariff rate in the United States since 1930, we see that

A country exports a good if

When a nation exports a good or service, employment in that industry

While high-paid American workers fear competition with low-paid foreign workers, low-paid foreign workers fear competition with high-paid American workers.Why?

Goods and services that the United States sells to other nations are called

The ________ are hurt by importing a good.

Briefly define a tariff and a quota.Do any of these methods restrict trade without harming domestic consumers?

A tariff is a tax

When a nation exports a good or service in which it has a comparative advantage, production of the good or service

If the United States imports purses, then the quantity of purses produced in the United States will and the quantity of purses purchased by consumers in the United States will .

The United States exports

The argument that it is necessary to protect a new industry to enable it to grow into a mature industry that can compete in world markets is known as the

Dumping is defined as the situation in which

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Finance

Filters

Exam 18: International Trade Policy

After a tariff is imposed on a good, the price of the good

In 2002, President Bush imposed a tariff on imported steel.He did so in response to rent seeking by

What is the national security argument for restricting international trade? What is its flaw?

-The above figure shows the U.S.market for wheat. With international trade, the United States exports ________ of wheat.

A tax on a good that is imposed by the importing country is called a

Looking at the average tariff rate in the United States since 1930, we see that

A country exports a good if

When a nation exports a good or service, employment in that industry

While high-paid American workers fear competition with low-paid foreign workers, low-paid foreign workers fear competition with high-paid American workers.Why?

Goods and services that the United States sells to other nations are called

The ________ are hurt by importing a good.

Briefly define a tariff and a quota.Do any of these methods restrict trade without harming domestic consumers?

A tariff is a tax

When a nation exports a good or service in which it has a comparative advantage, production of the good or service

If the United States imports purses, then the quantity of purses produced in the United States will ________ and the quantity of purses purchased by consumers in the United States will ________.

The United States exports

The argument that it is necessary to protect a new industry to enable it to grow into a mature industry that can compete in world markets is known as the

Dumping is defined as the situation in which

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Finance

Filters

If the United States imports purses, then the quantity of purses produced in the United States will and the quantity of purses purchased by consumers in the United States will .