Question 1

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

Accepted Answer

The national security argument is that t

Question 2

-The figure above shows the U.S. demand and U.S. supply curves for cherries. At a world price of $2 per pound once international trade occurs, the total imports of cherries to the United States from 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 3

When a tariff is imposed on a good, domestic consumers of the good ________ and domestic producers of the good ________.

Accepted Answer

A) win; lose 
B) lose; win 
C) win; win 
D) lose; lose 
E) lose; neither win nor lose 
A) win; lose 
B) lose; win 
C) win; win 
D) lose; lose 
E) lose; neither win nor lose

Question 4

How do imports affect buyers' consumer surplus?

Accepted Answer

Consumer surplus increases. It

Question 5

Which of the following is an argument that is used for protection from free trade?
I. the national security argument
Ii. the infant-industry argument
Iii. the dumping argument

Accepted Answer

A) i only 
B) ii only 
C) iii only 
D) i and iii 
E) i, ii, and iii 
A) i only 
B) ii only 
C) iii only 
D) i and iii 
E) i, ii, and iii

Question 6

A tariff is

Accepted Answer

A) a tax imposed on imports. 
B) any non-tax action used to restrict trade. 
C) a tax imposed on exports. 
D) any non-subsidy used to increase trade. 
E) a subsidy granted to imports. 
A) a tax imposed on imports. 
B) any non-tax action used to restrict trade. 
C) a tax imposed on exports. 
D) any non-subsidy used to increase trade. 
E) a subsidy granted to imports.

Question 7

-The above figure shows the U.S. market for 1 carat diamonds. With free trade, U.S. production of diamonds is equal to ________ diamonds. When the quota illustrated in the figure is in place, U.S. production is equal to ________ diamonds.

Accepted Answer

A) 100,000; 300,000 
B) 100,000; 500,000 
C) 300,000; 100,000 
D) 300,000; 500,000 
E) 900,000; 700,000 
A) 100,000; 300,000 
B) 100,000; 500,000 
C) 300,000; 100,000 
D) 300,000; 500,000 
E) 900,000; 700,000

Question 8

A specified maximum amount of the good that may be imported in a given period of time is a

Accepted Answer

A) forcible limit. 
B) quota. 
C) tariff. 
D) sanction. 
E) dumping limit. 
A) forcible limit. 
B) quota. 
C) tariff. 
D) sanction. 
E) dumping limit.

Question 9

When a nation exports a good, its ________ surplus decreases, and when it imports a good, its ________ surplus decreases.

Accepted Answer

A) consumer; producer 
B) consumer; consumer 
C) producer; producer 
D) producer; consumer 
E) total; consumer 
A) consumer; producer 
B) consumer; consumer 
C) producer; producer 
D) producer; consumer 
E) total; consumer

Question 10

When a nation exports a good, its ________ surplus increases, and when it imports a good, its ________ surplus increases.

Accepted Answer

A) consumer; total 
B) consumer; consumer 
C) producer; producer 
D) producer; consumer 
E) total; consumer 
A) consumer; total 
B) consumer; consumer 
C) producer; producer 
D) producer; consumer 
E) total; consumer

Question 11

When a tariff is imposed on a good, the ________ increases.

Accepted Answer

A) domestic quantity purchased 
B) domestic quantity produced 
C) quantity imported 
D) quantity exported 
E) world price 
A) domestic quantity purchased 
B) domestic quantity produced 
C) quantity imported 
D) quantity exported 
E) world price

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

-The above figure shows the U.S. market for wheat. With no international trade, consumer surplus is equal to ________ and producer surplus is equal to ________.

Accepted Answer

A) area A; area B + area C + area E + area F 
B) area A + area B + area C; area E + area F 
C) area E + area F; area A 
D) area B + area C + area D; area E + area F 
E) area A + area B + area C + area D; area E + area F 
A) area A; area B + area C + area E + area F 
B) area A + area B + area C; area E + area F 
C) area E + area F; area A 
D) area B + area C + area D; area E + area F 
E) area A + area B + area C + area D; area E + area F

Question 14

If an import quota is imposed on imports of shrimp into the United States, U.S. consumer surplus from shrimp will ________ and U.S. total surplus from shrimp will ________.

Accepted Answer

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

Question 15

-The above figure shows the U.S. market for 1 carat diamonds. With free trade, Americans buy ________ diamonds and pay a price of ________ per diamond.

Accepted Answer

A) 500,000; $4,000 
B) 300,000; $3,000 
C) 700,000; $3,000 
D) 300,000; $4,000 
E) 900,000; $2,000 
A) 500,000; $4,000 
B) 300,000; $3,000 
C) 700,000; $3,000 
D) 300,000; $4,000 
E) 900,000; $2,000

Question 16

A tariff is

Accepted Answer

A) the domestic price charged by an exporting firm. 
B) a tax on an imported good imposed by the importing country. 
C) a licensing regulation that limits imports. 
D) price dumping by a firm engaging in international trade. 
E) the world price of a good or service. 
A) the domestic price charged by an exporting firm. 
B) a tax on an imported good imposed by the importing country. 
C) a licensing regulation that limits imports. 
D) price dumping by a firm engaging in international trade. 
E) the world price of a good or service.

Question 17

A tariff makes the total economy

Accepted Answer

A) better off because it increases the domestic production of the good. 
B) better off because it decreases the deadweight loss from international trade. 
C) worse off because it creates a deadweight loss. 
D) worse off because it creates revenue for the government. 
E) worse off because it decreases both domestic consumer surplus and domestic producer surplus. 
A) better off because it increases the domestic production of the good. 
B) better off because it decreases the deadweight loss from international trade. 
C) worse off because it creates a deadweight loss. 
D) worse off because it creates revenue for the government. 
E) worse off because it decreases both domestic consumer surplus and domestic producer surplus.

Question 18

With no international trade, the U.S. price of wheat is lower than the world price of wheat. This indicates that the United States ________ a comparative advantage in the production of wheat and with international trade, the United States will ________ wheat.

Accepted Answer

A) has; export 
B) has; not trade 
C) has; import 
D) does not have; export 
E) might have; export 
A) has; export 
B) has; not trade 
C) has; import 
D) does not have; export 
E) might have; export

Question 19

When a nation imports a good, its ________ surplus decreases and its ________ surplus increases.

Accepted Answer

A) consumer; producer 
B) consumer; consumer 
C) producer; producer 
D) producer; total 
E) total; consumer 
A) consumer; producer 
B) consumer; consumer 
C) producer; producer 
D) producer; total 
E) total; consumer

Question 20

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

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

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

When a tariff is imposed on a good, domestic consumers of the good and domestic producers of the good .

How do imports affect buyers' consumer surplus?

Which of the following is an argument that is used for protection from free trade? I. the national security argument Ii. the infant-industry argument Iii. the dumping argument

A tariff is

-The above figure shows the U.S. market for 1 carat diamonds. With free trade, U.S. production of diamonds is equal to diamonds. When the quota illustrated in the figure is in place, U.S. production is equal to diamonds.

A specified maximum amount of the good that may be imported in a given period of time is a

When a nation exports a good, its surplus decreases, and when it imports a good, its surplus decreases.

When a nation exports a good, its surplus increases, and when it imports a good, its surplus increases.

When a tariff is imposed on a good, the ________ increases.

The ________ are hurt by importing a good.

-The above figure shows the U.S. market for wheat. With no international trade, consumer surplus is equal to and producer surplus is equal to .

If an import quota is imposed on imports of shrimp into the United States, U.S. consumer surplus from shrimp will and U.S. total surplus from shrimp will .

-The above figure shows the U.S. market for 1 carat diamonds. With free trade, Americans buy diamonds and pay a price of per diamond.

A tariff is

A tariff makes the total economy

With no international trade, the U.S. price of wheat is lower than the world price of wheat. This indicates that the United States a comparative advantage in the production of wheat and with international trade, the United States will wheat.

When a nation imports a good, its surplus decreases and its surplus increases.

Of the following, who gains with a tariff?

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

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

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

When a tariff is imposed on a good, domestic consumers of the good ________ and domestic producers of the good ________.

How do imports affect buyers' consumer surplus?

Which of the following is an argument that is used for protection from free trade? I. the national security argument Ii. the infant-industry argument Iii. the dumping argument

A tariff is

-The above figure shows the U.S. market for 1 carat diamonds. With free trade, U.S. production of diamonds is equal to ________ diamonds. When the quota illustrated in the figure is in place, U.S. production is equal to ________ diamonds.

A specified maximum amount of the good that may be imported in a given period of time is a

When a nation exports a good, its ________ surplus decreases, and when it imports a good, its ________ surplus decreases.

When a nation exports a good, its ________ surplus increases, and when it imports a good, its ________ surplus increases.

When a tariff is imposed on a good, the ________ increases.

The ________ are hurt by importing a good.

-The above figure shows the U.S. market for wheat. With no international trade, consumer surplus is equal to ________ and producer surplus is equal to ________.

If an import quota is imposed on imports of shrimp into the United States, U.S. consumer surplus from shrimp will ________ and U.S. total surplus from shrimp will ________.

-The above figure shows the U.S. market for 1 carat diamonds. With free trade, Americans buy ________ diamonds and pay a price of ________ per diamond.

A tariff is

A tariff makes the total economy

With no international trade, the U.S. price of wheat is lower than the world price of wheat. This indicates that the United States ________ a comparative advantage in the production of wheat and with international trade, the United States will ________ wheat.

When a nation imports a good, its ________ surplus decreases and its ________ surplus increases.

Of the following, who gains with a tariff?

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

When a tariff is imposed on a good, domestic consumers of the good and domestic producers of the good .

-The above figure shows the U.S. market for 1 carat diamonds. With free trade, U.S. production of diamonds is equal to diamonds. When the quota illustrated in the figure is in place, U.S. production is equal to diamonds.

When a nation exports a good, its surplus decreases, and when it imports a good, its surplus decreases.

When a nation exports a good, its surplus increases, and when it imports a good, its surplus increases.

-The above figure shows the U.S. market for wheat. With no international trade, consumer surplus is equal to and producer surplus is equal to .

If an import quota is imposed on imports of shrimp into the United States, U.S. consumer surplus from shrimp will and U.S. total surplus from shrimp will .

-The above figure shows the U.S. market for 1 carat diamonds. With free trade, Americans buy diamonds and pay a price of per diamond.

With no international trade, the U.S. price of wheat is lower than the world price of wheat. This indicates that the United States a comparative advantage in the production of wheat and with international trade, the United States will wheat.

When a nation imports a good, its surplus decreases and its surplus increases.