Question 1

After a nation starts importing a good from overseas, the domestic price of the good

Accepted Answer

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

Question 2

After a tariff is imposed, consumers must pay a price equal to the

Accepted Answer

A)  world market price. 
B)  domestic equilibrium price when there is no trade. 
C)  world market price plus the tariff. 
D)  world market price less the tariff. 
E)  domestic equilibrium price when there is no trade plus the tariff. 
A)  world market price. 
B)  domestic equilibrium price when there is no trade. 
C)  world market price plus the tariff. 
D)  world market price less the tariff. 
E)  domestic equilibrium price when there is no trade plus the tariff.

Question 3

-The above figure shows the U.S.market for flip-flops. With international trade, U.S.consumers buy ________ flip-flops and U.S.producers produce ________ flip-flops.

Accepted Answer

A)  500,000; 500,000 
B)  300,000; 700,000 
C)  500,000; 300,000 
D)  700,000; 300,000 
E)  700,000; 500,000 
A)  500,000; 500,000 
B)  300,000; 700,000 
C)  500,000; 300,000 
D)  700,000; 300,000 
E)  700,000; 500,000

Question 4

In the 1980s, the U.S.government forced Japanese automakers to limit their exports to the United States.The union representing the autoworkers (UAW), argued that otherwise the U.S.auto industry would have contracted.The UAW's argument is the ________ argument for protection.

Accepted Answer

A)  save domestic jobs 
B)  national security 
C)  anti-dumping 
D)  infant-industry 
E)  bringing diversity and stability 
A)  save domestic jobs 
B)  national security 
C)  anti-dumping 
D)  infant-industry 
E)  bringing diversity and stability

Question 5

Country A imports 1,000 cars per month.After imposing a $50 per car tariff, imports fall to 800 cars per month.How much does Country A's government collect in tariff revenue?

Accepted Answer

A)  $90,000 
B)  $50,000 
C)  $40,000 
D)  $10,000 
E)  $60,000 
A)  $90,000 
B)  $50,000 
C)  $40,000 
D)  $10,000 
E)  $60,000

Question 6

If the United States imposes a tariff on foreign chocolate, how are foreign producers of chocolate affected?

Accepted Answer

A)  Their supply increases because they have to pay the tariff. 
B)  They export less to the United States. 
C)  They earn more profit because their chocolate sells for a higher price. 
D)  Their supply is unaffected because the quota must be met by U.S.producers. 
E)  The tariff has no effect on foreign producers because U.S.consumers must pay the higher price. 
A)  Their supply increases because they have to pay the tariff. 
B)  They export less to the United States. 
C)  They earn more profit because their chocolate sells for a higher price. 
D)  Their supply is unaffected because the quota must be met by U.S.producers. 
E)  The tariff has no effect on foreign producers because U.S.consumers must pay the higher price.

Question 7

The figure above shows the U.S.market for T-shirts, 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 a T-shirt is $5.
-In the figure above, with international trade the United States ________ million T-shirts per year.

Accepted Answer

A)  imports 40 
B)  exports 40 
C)  exports 20 
D)  imports 20 
E)  imports 60 
A)  imports 40 
B)  exports 40 
C)  exports 20 
D)  imports 20 
E)  imports 60

Question 8

Goods and services that the United States buys from 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 9

Why are the losers from free international trade not fully compensated for their losses?

Accepted Answer

A)  The amount of compensation needed would bankrupt the government. 
B)  The people who claim to lose are also the same ones who benefit. 
C)  Identifying all losers and the size of their losses is extremely difficult. 
D)  No one actually loses from international trade. 
E)  The losers are foreigners. 
A)  The amount of compensation needed would bankrupt the government. 
B)  The people who claim to lose are also the same ones who benefit. 
C)  Identifying all losers and the size of their losses is extremely difficult. 
D)  No one actually loses from international trade. 
E)  The losers are foreigners.

Question 10

During the past 70 years, the peak average tariff rate in the United States stemmed from the

Accepted Answer

A)  creation of GATT in the middle of the 1940s. 
B)  Kennedy Administration in the early 1960s. 
C)  Uruguay round of GATT in the 1980s. 
D)  Smoot-Hawley Tariff Act in the early 1930s. 
E)  Clinton-Bush tariff of 2000-2001. 
A)  creation of GATT in the middle of the 1940s. 
B)  Kennedy Administration in the early 1960s. 
C)  Uruguay round of GATT in the 1980s. 
D)  Smoot-Hawley Tariff Act in the early 1930s. 
E)  Clinton-Bush tariff of 2000-2001.

Question 11

If the government decides to impose a new tariff on orange juice from Brazil, the tariff would lead to ________ the tariff revenue collected by the U.S.government.

Accepted Answer

A)  no change in 
B)  an increase in 
C)  a decrease in 
D)  an elimination of 
E)  making illegal 
A)  no change in 
B)  an increase in 
C)  a decrease in 
D)  an elimination of 
E)  making illegal

Question 12

When Italy buys Boeing jets, the price Italy pays is ________ if it produced its own jets and the price Boeing receives is ________ than it could receive from an additional U.S.buyer.

Accepted Answer

A)  lower than; lower 
B)  higher than; higher 
C)  lower than; higher 
D)  higher than; lower 
E)  the same as; higher 
A)  lower than; lower 
B)  higher than; higher 
C)  lower than; higher 
D)  higher than; lower 
E)  the same as; higher

Question 13

The United States imposes a tariff on foreign limes.How does the tariff affect the U.S.price of a lime and the production of limes in the United States?

Accepted Answer

The tariff raises the price of

Question 14

The average U.S.tariff was highest in the

Accepted Answer

A)  1930s. 
B)  1940s. 
C)  1970s. 
D)  1980s. 
E)  1990s. 
A)  1930s. 
B)  1940s. 
C)  1970s. 
D)  1980s. 
E)  1990s.

Question 15

Of the following, who gains with a tariff?

Accepted Answer

A)  domestic buyers of the good or service 
B)  the importer of the good or service 
C)  the foreign exporter of the good or service 
D)  the government of the importing nation 
E)  the government of the exporting nation 
A)  domestic buyers of the good or service 
B)  the importer of the good or service 
C)  the foreign exporter of the good or service 
D)  the government of the importing nation 
E)  the government of the exporting nation

Question 16

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Price } \
\text { (dollars per unit) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded Quantity supplied } \
\text { (units per day) }
\end{array} & \begin{array} { c } 
\text { (units per day) }
\end{array} \
\hline 2 & 20 & 14 \
4 & 19 & 16 \
6 & 18 & 18 \
8 & 17 & 20 \
10 & 16 & 22 \
12 & 15 & 24
\end{array}$$
-The table above has the domestic demand and domestic supply schedules for a good.According to the table, the no-trade price of the good is

Accepted Answer

A)  $4. 
B)  $6. 
C)  $8. 
D)  $10. 
E)  $2. 
A)  $4. 
B)  $6. 
C)  $8. 
D)  $10. 
E)  $2.

Question 17

-The figure above shows the U.S.demand and U.S.supply curves for cherries.At a world price of $2 per pound, the total exports of cherries from the United States to other nations equals

Accepted Answer

A)  200,000 pounds. 
B)  400,000 pounds. 
C)  600,000 pounds. 
D)  800,000 pounds. 
E)  0 pounds. 
A)  200,000 pounds. 
B)  400,000 pounds. 
C)  600,000 pounds. 
D)  800,000 pounds. 
E)  0 pounds.

Question 18

The figure above shows the U.S.market for T-shirts, 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 a T-shirt is $5.
-Based on the figure above, as a result of international trade, U.S.domestic production ________ million T-shirts per year.

Accepted Answer

A)  decreases by 20 
B)  increases by 20 
C)  decreases by 10 
D)  increases by 40 
E)  increases by 10 
A)  decreases by 20 
B)  increases by 20 
C)  decreases by 10 
D)  increases by 40 
E)  increases by 10

Question 19

The two main reasons why international trade is restricted is because restricting trade means that governments can ________ and because domestic businesses ________.

Accepted Answer

A)  create jobs; earn profits 
B)  obtain revenue; rent seek 
C)  rent seek; want to dump 
D)  prevent dumping; want to dump 
E)  rent seek; obtain revenue 
A)  create jobs; earn profits 
B)  obtain revenue; rent seek 
C)  rent seek; want to dump 
D)  prevent dumping; want to dump 
E)  rent seek; obtain revenue

Question 20

In the wake of worsening relations with China, some Americans called for an increase in tariffs on Chinese products coming into America.If higher tariffs are imposed on clothing produced in China, the price of clothing in America would

Accepted Answer

A)  decrease. 
B)  increase. 
C)  not change. 
D)  first increase then decrease. 
E)  first decrease then increase. 
A)  decrease. 
B)  increase. 
C)  not change. 
D)  first increase then decrease. 
E)  first decrease then increase.

After a nation starts importing a good from overseas, the domestic price of the good

After a tariff is imposed, consumers must pay a price equal to the

-The above figure shows the U.S.market for flip-flops. With international trade, U.S.consumers buy flip-flops and U.S.producers produce flip-flops.

In the 1980s, the U.S.government forced Japanese automakers to limit their exports to the United States.The union representing the autoworkers (UAW), argued that otherwise the U.S.auto industry would have contracted.The UAW's argument is the ________ argument for protection.

Country A imports 1,000 cars per month.After imposing a $50 per car tariff, imports fall to 800 cars per month.How much does Country A's government collect in tariff revenue?

If the United States imposes a tariff on foreign chocolate, how are foreign producers of chocolate affected?

Goods and services that the United States buys from other nations are called

Why are the losers from free international trade not fully compensated for their losses?

During the past 70 years, the peak average tariff rate in the United States stemmed from the

If the government decides to impose a new tariff on orange juice from Brazil, the tariff would lead to ________ the tariff revenue collected by the U.S.government.

When Italy buys Boeing jets, the price Italy pays is if it produced its own jets and the price Boeing receives is than it could receive from an additional U.S.buyer.

The United States imposes a tariff on foreign limes.How does the tariff affect the U.S.price of a lime and the production of limes in the United States?

The average U.S.tariff was highest in the

Of the following, who gains with a tariff?

Price (dollars per unit) Quantity demanded Quantity supplied (units per day) (units per day) 2 20 14 4 19 16 6 18 18 8 17 20 10 16 22 12 15 24 -The table above has the domestic demand and domestic supply schedules for a good.According to the table, the no-trade price of the good is

-The figure above shows the U.S.demand and U.S.supply curves for cherries.At a world price of $2 per pound, the total exports of cherries from the United States to other nations equals

The two main reasons why international trade is restricted is because restricting trade means that governments can and because domestic businesses .

In the wake of worsening relations with China, some Americans called for an increase in tariffs on Chinese products coming into America.If higher tariffs are imposed on clothing produced in China, the price of clothing in America would

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 nation starts importing a good from overseas, the domestic price of the good

After a tariff is imposed, consumers must pay a price equal to the

-The above figure shows the U.S.market for flip-flops. With international trade, U.S.consumers buy ________ flip-flops and U.S.producers produce ________ flip-flops.

In the 1980s, the U.S.government forced Japanese automakers to limit their exports to the United States.The union representing the autoworkers (UAW), argued that otherwise the U.S.auto industry would have contracted.The UAW's argument is the ________ argument for protection.

Country A imports 1,000 cars per month.After imposing a $50 per car tariff, imports fall to 800 cars per month.How much does Country A's government collect in tariff revenue?

If the United States imposes a tariff on foreign chocolate, how are foreign producers of chocolate affected?

Goods and services that the United States buys from other nations are called

Why are the losers from free international trade not fully compensated for their losses?

During the past 70 years, the peak average tariff rate in the United States stemmed from the

If the government decides to impose a new tariff on orange juice from Brazil, the tariff would lead to ________ the tariff revenue collected by the U.S.government.

When Italy buys Boeing jets, the price Italy pays is ________ if it produced its own jets and the price Boeing receives is ________ than it could receive from an additional U.S.buyer.

The United States imposes a tariff on foreign limes.How does the tariff affect the U.S.price of a lime and the production of limes in the United States?

The average U.S.tariff was highest in the

Of the following, who gains with a tariff?

Price (dollars per unit) Quantity demanded Quantity supplied (units per day) (units per day) 2 20 14 4 19 16 6 18 18 8 17 20 10 16 22 12 15 24 -The table above has the domestic demand and domestic supply schedules for a good.According to the table, the no-trade price of the good is

-The figure above shows the U.S.demand and U.S.supply curves for cherries.At a world price of $2 per pound, the total exports of cherries from the United States to other nations equals

The two main reasons why international trade is restricted is because restricting trade means that governments can ________ and because domestic businesses ________.

In the wake of worsening relations with China, some Americans called for an increase in tariffs on Chinese products coming into America.If higher tariffs are imposed on clothing produced in China, the price of clothing in America would

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

-The above figure shows the U.S.market for flip-flops. With international trade, U.S.consumers buy flip-flops and U.S.producers produce flip-flops.

When Italy buys Boeing jets, the price Italy pays is if it produced its own jets and the price Boeing receives is than it could receive from an additional U.S.buyer.

The two main reasons why international trade is restricted is because restricting trade means that governments can and because domestic businesses .