Question 1

As a result of U.S. tariffs imposed on wool from New Zealand, the quantity of this wool that is imported has

Accepted Answer

A) decreased. 
B) increased a little. 
C) not changed. 
D) increased a lot. 
E) changed, but whether it has increased or decreased is ambiguous. 
A) decreased. 
B) increased a little. 
C) not changed. 
D) increased a lot. 
E) changed, but whether it has increased or decreased is ambiguous.

Question 2

How does the United States attempt to compensate losers from lower trade restrictions?

Accepted Answer

The U.S. government attempts to compensa

Question 3

-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 4

What is the national security argument to support protection from international trade?

Accepted Answer

A) Domestic firms must be protected until they gain a comparative advantage. 
B) Any firm necessary in wartime must be protected. 
C) Foreign producers selling below cost to drive domestic firms bankrupt must be stopped. 
D) Domestic jobs must be protected from competition from low-paid foreign workers. 
E) Foreigners selling products in the economy limit the nation's diversity and stability. 
A) Domestic firms must be protected until they gain a comparative advantage. 
B) Any firm necessary in wartime must be protected. 
C) Foreign producers selling below cost to drive domestic firms bankrupt must be stopped. 
D) Domestic jobs must be protected from competition from low-paid foreign workers. 
E) Foreigners selling products in the economy limit the nation's diversity and stability.

Question 5

The United States imports t-shirts because

Accepted Answer

A) it is a dangerous job to produce them. 
B) foreign nations have a lower opportunity cost of production. 
C) the United States has a lower opportunity cost of production. 
D) foreign economies have an absolute advantage in their production. 
E) the United States must import goods and services from other countries so that they can develop economically. 
A) it is a dangerous job to produce them. 
B) foreign nations have a lower opportunity cost of production. 
C) the United States has a lower opportunity cost of production. 
D) foreign economies have an absolute advantage in their production. 
E) the United States must import goods and services from other countries so that they can develop economically.

Question 6

If the United States imposed a quota on the amount of salmon imported from Chile, the result would be ________ salmon prices in the United States and ________ in the quantity of salmon demanded in the United States.

Accepted Answer

A) higher; an increase 
B) higher; a decrease 
C) lower; an increase 
D) lower; a decrease 
E) higher; no change 
A) higher; an increase 
B) higher; a decrease 
C) lower; an increase 
D) lower; a decrease 
E) higher; no change

Question 7

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Price } \
\text { (dollars per unit) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded Quantity supplied } \
\text { (units per day) }
\end{array} & \begin{array} { c } 
\text { (units per day) }
\end{array} \
\hline 2 & 20 & 14 \
4 & 19 & 16 \
6 & 18 & 18 \
8 & 17 & 20 \
10 & 16 & 22 \
12 & 15 & 24 \
\hline
\end{array}$$
-The table above has the domestic demand and domestic supply schedules for a good. If the world price of the good is $10 and international trade occurs, then according to the table

Accepted Answer

A) domestic production is higher before trade than after trade. 
B) the country imports 16 units a day. 
C) the country imports 6 units a day. 
D) the country exports 6 units a day. 
E) the country exports 22 units a day. 
A) domestic production is higher before trade than after trade. 
B) the country imports 16 units a day. 
C) the country imports 6 units a day. 
D) the country exports 6 units a day. 
E) the country exports 22 units a day.

Question 8

Relative to free trade, when a tariff is imposed in a market for an imported good

Accepted Answer

A) the consumer surplus in that market increases. 
B) the producer surplus in that market decreases. 
C) the total surplus in that market decreases. 
D) tariff revenue decreases. 
E) deadweight loss decreases. 
A) the consumer surplus in that market increases. 
B) the producer surplus in that market decreases. 
C) the total surplus in that market decreases. 
D) tariff revenue decreases. 
E) deadweight loss decreases.

Question 9

Which of the following is the national security argument against free trade?

Accepted Answer

A) A country must protect industries that produce defense equipment and armaments. 
B) A country must protect new industries to give them a chance to mature before facing foreign competition. 
C) A country must protect firms from dumping by foreign companies. 
D) A country must protect its consumers from foreign influences. 
E) A country must preserve its jobs. 
A) A country must protect industries that produce defense equipment and armaments. 
B) A country must protect new industries to give them a chance to mature before facing foreign competition. 
C) A country must protect firms from dumping by foreign companies. 
D) A country must protect its consumers from foreign influences. 
E) A country must preserve its jobs.

Question 10

The country with a comparative advantage in the production of a good has a

Accepted Answer

A) lower opportunity cost of production. 
B) higher opportunity cost of production. 
C) horizontal production possibilities frontier. 
D) vertical production possibilities frontier. 
E) linear production possibilities frontier. 
A) lower opportunity cost of production. 
B) higher opportunity cost of production. 
C) horizontal production possibilities frontier. 
D) vertical production possibilities frontier. 
E) linear production possibilities frontier.

Question 11

-The above figure shows the U.S. market for 1 carat diamonds. Area A is the

Accepted Answer

A) increase in producer surplus due to the import quota. 
B) importers' profit from the import quota. 
C) decrease in consumer surplus due to the import quota. 
D) deadweight loss from the import quota. 
E) gain in total surplus due to the import quota. 
A) increase in producer surplus due to the import quota. 
B) importers' profit from the import quota. 
C) decrease in consumer surplus due to the import quota. 
D) deadweight loss from the import quota. 
E) gain in total surplus due to the import quota.

Question 12

How do exports affect buyers' consumer surplus?

Accepted Answer

Consumer surplus decreases. It

Question 13

If you buy a DVD player produced in Japan, a

Accepted Answer

A) good was exported by Japan and imported by the United States. 
B) good was imported by Japan and by the United States. 
C) service was imported by Japan and exported by the United States. 
D) service was exported by Japan and imported by the United States. 
E) good was exported by Japan and by the United States. 
A) good was exported by Japan and imported by the United States. 
B) good was imported by Japan and by the United States. 
C) service was imported by Japan and exported by the United States. 
D) service was exported by Japan and imported by the United States. 
E) good was exported by Japan and by the United States.

Question 14

-The above figure shows the U.S. market for replacement cell phone batteries. Area C is the

Accepted Answer

A) deadweight loss from tariff. 
B) decrease in consumer surplus due to the tariff. 
C) increase in producer surplus due to the tariff. 
D) tariff revenue. 
E) loss in total surplus because of the tariff. 
A) deadweight loss from tariff. 
B) decrease in consumer surplus due to the tariff. 
C) increase in producer surplus due to the tariff. 
D) tariff revenue. 
E) loss in total surplus because of the tariff.

Question 15

If Country A opens up their corn market to trade with the rest of the world and the global price of corn is lower than the equilibrium price of corn in Country A, then Country A will ________ corn, which will ________ consumer surplus, ________ producer surplus, and ________ total surplus.

Accepted Answer

A) import; increase; decrease; increase 
B) import; decrease; increase; increase 
C) export; increase; decrease; increase 
D) export; decrease; increase; increase 
E) export; decrease; increase; decrease 
A) import; increase; decrease; increase 
B) import; decrease; increase; increase 
C) export; increase; decrease; increase 
D) export; decrease; increase; increase 
E) export; decrease; increase; decrease

Question 16

Most t-shirts bought by Americans are made in Asia. U.S. consumers of t-shirts buy these t-shirts because

Accepted Answer

A) they pay a higher price for t-shirts made in Asia than they would for similar shirts made in the United States. 
B) they pay a lower price for t-shirts made in Asia than they would for similar shirts made in the United States. 
C) they must buy some goods or services produced in Asia. 
D) by so doing they are helping preserve U.S. jobs producing t-shirts. 
E) they know that the United States has a comparative advantage in wearing t-shirts. 
A) they pay a higher price for t-shirts made in Asia than they would for similar shirts made in the United States. 
B) they pay a lower price for t-shirts made in Asia than they would for similar shirts made in the United States. 
C) they must buy some goods or services produced in Asia. 
D) by so doing they are helping preserve U.S. jobs producing t-shirts. 
E) they know that the United States has a comparative advantage in wearing t-shirts.

Question 17

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 18

When the United States imposes a tariff on an imported good, the

Accepted Answer

A) price of the good in the United States falls. 
B) quantity of the good purchased in the United States decreases. 
C) quantity of the good produced in the United States decreases. 
D) outcome becomes more efficient. 
E) amount imported increases. 
A) price of the good in the United States falls. 
B) quantity of the good purchased in the United States decreases. 
C) quantity of the good produced in the United States decreases. 
D) outcome becomes more efficient. 
E) amount imported increases.

Question 19

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 world price of a T-shirt is $5. The U.S. government imposes a $2 per unit tariff on imported T-shirts.
-The figure above shows that the government revenue from the tariff is

Accepted Answer

A) $20 million per year. 
B) $30 million per year. 
C) $15 million per year. 
D) $55 million per year. 
E) zero. 
A) $20 million per year. 
B) $30 million per year. 
C) $15 million per year. 
D) $55 million per year. 
E) zero.

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.

As a result of U.S. tariffs imposed on wool from New Zealand, the quantity of this wool that is imported has

How does the United States attempt to compensate losers from lower trade restrictions?

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

What is the national security argument to support protection from international trade?

The United States imports t-shirts because

If the United States imposed a quota on the amount of salmon imported from Chile, the result would be salmon prices in the United States and in the quantity of salmon demanded in the United States.

Relative to free trade, when a tariff is imposed in a market for an imported good

Which of the following is the national security argument against free trade?

The country with a comparative advantage in the production of a good has a

-The above figure shows the U.S. market for 1 carat diamonds. Area A is the

How do exports affect buyers' consumer surplus?

If you buy a DVD player produced in Japan, a

-The above figure shows the U.S. market for replacement cell phone batteries. Area C is the

If Country A opens up their corn market to trade with the rest of the world and the global price of corn is lower than the equilibrium price of corn in Country A, then Country A will corn, which will consumer surplus, producer surplus, and total surplus.

Most t-shirts bought by Americans are made in Asia. U.S. consumers of t-shirts buy these t-shirts because

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

When the United States imposes a tariff on an imported good, the

Dumping is defined as the situation in which

Getting Started

The Us and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 8: Global Markets in Action

As a result of U.S. tariffs imposed on wool from New Zealand, the quantity of this wool that is imported has

How does the United States attempt to compensate losers from lower trade restrictions?

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

What is the national security argument to support protection from international trade?

The United States imports t-shirts because

If the United States imposed a quota on the amount of salmon imported from Chile, the result would be ________ salmon prices in the United States and ________ in the quantity of salmon demanded in the United States.

Relative to free trade, when a tariff is imposed in a market for an imported good

Which of the following is the national security argument against free trade?

The country with a comparative advantage in the production of a good has a

-The above figure shows the U.S. market for 1 carat diamonds. Area A is the

How do exports affect buyers' consumer surplus?

If you buy a DVD player produced in Japan, a

-The above figure shows the U.S. market for replacement cell phone batteries. Area C is the

If Country A opens up their corn market to trade with the rest of the world and the global price of corn is lower than the equilibrium price of corn in Country A, then Country A will ________ corn, which will ________ consumer surplus, ________ producer surplus, and ________ total surplus.

Most t-shirts bought by Americans are made in Asia. U.S. consumers of t-shirts buy these t-shirts because

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

When the United States imposes a tariff on an imported good, the

Dumping is defined as the situation in which

Getting Started

The Us and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

If the United States imposed a quota on the amount of salmon imported from Chile, the result would be salmon prices in the United States and in the quantity of salmon demanded in the United States.

If Country A opens up their corn market to trade with the rest of the world and the global price of corn is lower than the equilibrium price of corn in Country A, then Country A will corn, which will consumer surplus, producer surplus, and total surplus.