Question 1

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 2

If the United States exports planes to Brazil and imports ethanol from Brazil, the price received by U.S. producers of planes ________ and the price received by Brazilian producers of ethanol ________.

Accepted Answer

A) does not change; does not change 
B) rises; rises 
C) rises; falls 
D) falls; rises 
E) falls; falls 
A) does not change; does not change 
B) rises; rises 
C) rises; falls 
D) falls; rises 
E) falls; falls

Question 3

If the United States starts to import a good that had previously been produced in the United States, the market price of the good in the United States

Accepted Answer

A) rises. 
B) falls. 
C) remains constant. 
D) either remains constant or rises, depending on how whether the supply of the good stays the same or increases. 
E) There is not enough information to answer the question because we need to know if the market price in the United States had been above or below the world market price before trade began. 
A) rises. 
B) falls. 
C) remains constant. 
D) either remains constant or rises, depending on how whether the supply of the good stays the same or increases. 
E) There is not enough information to answer the question because we need to know if the market price in the United States had been above or below the world market price before trade began.

Question 4

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 as a result of the tariff, consumer surplus in the United States

Accepted Answer

A) decreases by $105 million per year. 
B) increases by $55 million per year. 
C) decreases by $30 million per year. 
D) decreases by $20 million per year. 
E) remains unchanged. 
A) decreases by $105 million per year. 
B) increases by $55 million per year. 
C) decreases by $30 million per year. 
D) decreases by $20 million per year. 
E) remains unchanged.

Question 5

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 6

Assume that the state of Missouri decided to place a tariff on every product produced outside the state in an effort to increase the state's revenue and increase employment in the state. If Missouri did so,

Accepted Answer

A) the state's total output would definitely increase. 
B) workers with jobs in new firms replacing out-of-state imports would earn high income. 
C) the standard of living within Missouri would decrease. 
D) other states would begin to dump in Missouri. 
E) the prices of goods imported into Missouri would fall. 
A) the state's total output would definitely increase. 
B) workers with jobs in new firms replacing out-of-state imports would earn high income. 
C) the standard of living within Missouri would decrease. 
D) other states would begin to dump in Missouri. 
E) the prices of goods imported into Missouri would fall.

Question 7

Three arguments used to promote trade barriers are the national security argument, the infant-industry argument, and the dumping argument. Explain each of these arguments and evaluate whether each one has any flaws.

Accepted Answer

The national security argument is that c

Question 8

When a country imports a good, the ________ in consumer surplus is ________ the ________ in producer surplus.

Accepted Answer

A) decrease; larger than; increase 
B) decrease; smaller than; increase 
C) increase; smaller than; decrease 
D) increase; equal to; decrease 
E) increase; larger than; decrease 
A) decrease; larger than; increase 
B) decrease; smaller than; increase 
C) increase; smaller than; decrease 
D) increase; equal to; decrease 
E) increase; larger than; decrease

Question 9

When a country exports a good because the world price is higher than the no-trade domestic price, domestic purchases of the good ________ and domestic production of the good ________.

Accepted Answer

A) increase; increases 
B) increase; decreases 
C) decrease; increases 
D) decrease; decreases 
E) do not change; increases 
A) increase; increases 
B) increase; decreases 
C) decrease; increases 
D) decrease; decreases 
E) do not change; increases

Question 10

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 11

Goods and services that we buy from firms in other countries are called our

Accepted Answer

A) imports. 
B) exports. 
C) inputs. 
D) raw materials. 
E) obligations. 
A) imports. 
B) exports. 
C) inputs. 
D) raw materials. 
E) obligations.

Question 12

Imports are defined as the goods and services that we

Accepted Answer

A) produce and consume in the United States. 
B) sell to other countries. 
C) buy from other countries. 
D) partially produce in both the United States and another country. 
E) produce abroad using U.S. owned factories and then consume in the United States. 
A) produce and consume in the United States. 
B) sell to other countries. 
C) buy from other countries. 
D) partially produce in both the United States and another country. 
E) produce abroad using U.S. owned factories and then consume in the United States.

Question 13

If the United States negotiates a voluntary export restraint with international sugar producing nations, then

Accepted Answer

A) U.S. sugar buyers pay a lower price for sugar. 
B) U.S. sugar producers produce a smaller quantity. 
C) imports of sugar increase. 
D) the U.S. government collects less revenue than if it imposed a tariff on sugar. 
E) the foreign governments collect more revenue than if a tariff is imposed on sugar. 
A) U.S. sugar buyers pay a lower price for sugar. 
B) U.S. sugar producers produce a smaller quantity. 
C) imports of sugar increase. 
D) the U.S. government collects less revenue than if it imposed a tariff on sugar. 
E) the foreign governments collect more revenue than if a tariff is imposed on sugar.

Question 14

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Price } \
\text { (dollars per television set) }
\end{array} & \begin{array} { c } 
\text { Quantity supplied } \
\text { (millions of sets per year) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded } \
\text { (millions of sets per year) }
\end{array} \
\hline 400 & 1 & 10 \
600 & 2 & 8 \
800 & 3 & 6 \
1,000 & 4 & 4 \
1,200 & 5 & 2 \
\hline
\end{array}$$
-The United States imports television sets from Japan. The table above contains the U.S. demand and U.S. supply schedules for television sets. The world price of a television set is $600 per set.
a. With no trade, what is the domestic price and quantity of television sets?
b. At the world price, what is the quantity of sets demanded in the United States?
c. At the world price, how many sets are produced in the United States?
d. At the world price, how many sets are imported into the United States?
e. What is the opportunity cost of producing the 4-millionth television set in the United States?
 In Japan?

Accepted Answer

a. In the absence of trade, the price is

Question 15

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.

Question 16

A quota is

Accepted Answer

A) a tax on imports. 
B) a specified minimum amount that must be imported. 
C) a specified maximum amount that can be imported. 
D) a tariff on exports. 
E) the minimum amount that domestic firms can dump. 
A) a tax on imports. 
B) a specified minimum amount that must be imported. 
C) a specified maximum amount that can be imported. 
D) a tariff on exports. 
E) the minimum amount that domestic firms can dump.

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

If the United States exports planes to Brazil and imports ethanol from Brazil, the price received by U.S. producers of planes and the price received by Brazilian producers of ethanol .

If the United States starts to import a good that had previously been produced in the United States, the market price of the good in the United States

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.

Assume that the state of Missouri decided to place a tariff on every product produced outside the state in an effort to increase the state's revenue and increase employment in the state. If Missouri did so,

Three arguments used to promote trade barriers are the national security argument, the infant-industry argument, and the dumping argument. Explain each of these arguments and evaluate whether each one has any flaws.

When a country imports a good, the in consumer surplus is the in producer surplus.

When a country exports a good because the world price is higher than the no-trade domestic price, domestic purchases of the good and domestic production of the good .

The average U.S. tariff was highest in the

Goods and services that we buy from firms in other countries are called our

Imports are defined as the goods and services that we

If the United States negotiates a voluntary export restraint with international sugar producing nations, then

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

A quota is

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

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

If the United States exports planes to Brazil and imports ethanol from Brazil, the price received by U.S. producers of planes ________ and the price received by Brazilian producers of ethanol ________.

If the United States starts to import a good that had previously been produced in the United States, the market price of the good in the United States

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.

Assume that the state of Missouri decided to place a tariff on every product produced outside the state in an effort to increase the state's revenue and increase employment in the state. If Missouri did so,

Three arguments used to promote trade barriers are the national security argument, the infant-industry argument, and the dumping argument. Explain each of these arguments and evaluate whether each one has any flaws.

When a country imports a good, the ________ in consumer surplus is ________ the ________ in producer surplus.

When a country exports a good because the world price is higher than the no-trade domestic price, domestic purchases of the good ________ and domestic production of the good ________.

The average U.S. tariff was highest in the

Goods and services that we buy from firms in other countries are called our

Imports are defined as the goods and services that we

If the United States negotiates a voluntary export restraint with international sugar producing nations, then

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

A quota is

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 exports planes to Brazil and imports ethanol from Brazil, the price received by U.S. producers of planes and the price received by Brazilian producers of ethanol .

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.

When a country imports a good, the in consumer surplus is the in producer surplus.

When a country exports a good because the world price is higher than the no-trade domestic price, domestic purchases of the good and domestic production of the good .