Question 1

Countries like the United States use ________ to offset foreign export subsidies.

Accepted Answer

A) quotas 
B) the escape clause 
C) countervailing duties 
D) government procurement 
A) quotas 
B) the escape clause 
C) countervailing duties 
D) government procurement C

Question 2

Higher protection raises the overall level of employment.

Accepted Answer

A) True 
 B)False  False

Question 3

Strategic trade policy considerations imply that free trade policies should never be pursued.

Accepted Answer

A) True 
 B)False  False

Question 4

Tariffs and quotas tend to be similar in their domestic welfare effects

Accepted Answer

A) if quota licenses are given to foreigners. 
B) if quota licenses are auctioned. 
C) if quota licenses are given to domestic firms. 
D) Both B and C. 
A) if quota licenses are given to foreigners. 
B) if quota licenses are auctioned. 
C) if quota licenses are given to domestic firms. 
D) Both B and C.

Question 5

A(n)________ is an example of a quota where foreigners hold quota licenses.

Accepted Answer

A) voluntary export restraint 
B) embargo 
C) auction quota 
D) All of the above 
A) voluntary export restraint 
B) embargo 
C) auction quota 
D) All of the above

Question 6

While tariff levels have been falling over the past several decades,nontariff barriers have been used increasingly.

Accepted Answer

A) True 
 B)False

Question 7

Quotas redistribute income from consumers to domestic producers.

Accepted Answer

A) True 
 B)False

Question 8

Write an essay on the national defense argument for tariffs.Include in your discussion points in favor of this idea as well as problems with its implementation.Is protection the best policy to achieve the stated ends? Explain.

Accepted Answer

The national defense argument is legitim

Question 9

Which of the following is a valid argument for protection?

Accepted Answer

A) national defense 
B) fair trade 
C) creation of employment 
D) All of the above 
A) national defense 
B) fair trade 
C) creation of employment 
D) All of the above

Question 10

Quotas are government imposed limits on the ________ of goods traded between countries.

Accepted Answer

A) prices 
B) quantity 
C) value 
D) Either B or C 
A) prices 
B) quantity 
C) value 
D) Either B or C

Question 11

The argument that developing countries should nurture their infant domestic industries by protecting them from foreign competition is known as

Accepted Answer

A) the infant industry argument. 
B) the escape clause hypothesis. 
C) preservation of the home market. 
D) institutional fair trade policy. 
A) the infant industry argument. 
B) the escape clause hypothesis. 
C) preservation of the home market. 
D) institutional fair trade policy.

Question 12

The United States bans most imports from all of the following countries except

Accepted Answer

A) China. 
B) Cuba. 
C) North Korea. 
D) Iran. 
A) China. 
B) Cuba. 
C) North Korea. 
D) Iran.

Question 13

The argument that developing countries with lax environmental standards will attract foreign manufacturers who want to escape stricter standards in their own countries is known as

Accepted Answer

A) the pollution havens hypothesis. 
B) the escape clause hypothesis. 
C) the earth destruction hypothesis. 
D) the environmentally destructive hypothesis. 
A) the pollution havens hypothesis. 
B) the escape clause hypothesis. 
C) the earth destruction hypothesis. 
D) the environmentally destructive hypothesis.

Question 14

Which of the following is false?

Accepted Answer

A) Tariffs and quotas are identical in their effects, if the protected industry is a monopoly. 
B) Quotas tend to breed graft. 
C) Welfare effects of quotas depend, in part, on who gets the quota rents. 
D) Quotas tend to be administrated in an arbitrary fashion. 
A) Tariffs and quotas are identical in their effects, if the protected industry is a monopoly. 
B) Quotas tend to breed graft. 
C) Welfare effects of quotas depend, in part, on who gets the quota rents. 
D) Quotas tend to be administrated in an arbitrary fashion.

Question 15

The welfare effects of a quota depend,to considerable extent,upon

Accepted Answer

A) who has the quota license. 
B) the size of the quota. 
C) elasticities of domestic demand and supply. 
D) all of the above. 
A) who has the quota license. 
B) the size of the quota. 
C) elasticities of domestic demand and supply. 
D) all of the above.

Question 16

Export subsidies lead to

Accepted Answer

A) greater production of exportables and higher internal prices for these goods. 
B) greater production of exportables and lower internal prices for these goods. 
C) greater production of importables and higher internal prices for these goods. 
D) None of the above. 
A) greater production of exportables and higher internal prices for these goods. 
B) greater production of exportables and lower internal prices for these goods. 
C) greater production of importables and higher internal prices for these goods. 
D) None of the above.

Question 17

Governments around the world tend to auction quota licenses

Accepted Answer

A) never. 
B) seldom. 
C) often. 
D) always. 
A) never. 
B) seldom. 
C) often. 
D) always.

Question 18

A production subsidy combined with free trade

Accepted Answer

A) has the same deadweight costs as a tariff. 
B) has only consumption deadweight costs. 
C) has only production deadweight costs. 
D) None of the above. 
A) has the same deadweight costs as a tariff. 
B) has only consumption deadweight costs. 
C) has only production deadweight costs. 
D) None of the above.

Question 19

Answer the question(s)below based on the following diagram.
  
-Refer to the figure above.The quota shown in the diagram equals

Accepted Answer

A) 200 units. 
B) 500 units. 
C) 1000 units. 
D) 1200 units. 
A) 200 units. 
B) 500 units. 
C) 1000 units. 
D) 1200 units.

Question 20

Are tariffs and quotas equivalent in their economic effects? Demonstrate.

Accepted Answer

No.There are government revenu

Countries like the United States use ________ to offset foreign export subsidies.

Higher protection raises the overall level of employment.

Strategic trade policy considerations imply that free trade policies should never be pursued.

Tariffs and quotas tend to be similar in their domestic welfare effects

A(n)________ is an example of a quota where foreigners hold quota licenses.

While tariff levels have been falling over the past several decades,nontariff barriers have been used increasingly.

Quotas redistribute income from consumers to domestic producers.

Write an essay on the national defense argument for tariffs.Include in your discussion points in favor of this idea as well as problems with its implementation.Is protection the best policy to achieve the stated ends? Explain.

Which of the following is a valid argument for protection?

Quotas are government imposed limits on the ________ of goods traded between countries.

The argument that developing countries should nurture their infant domestic industries by protecting them from foreign competition is known as

The United States bans most imports from all of the following countries except

The argument that developing countries with lax environmental standards will attract foreign manufacturers who want to escape stricter standards in their own countries is known as

Which of the following is false?

The welfare effects of a quota depend,to considerable extent,upon

Export subsidies lead to

Governments around the world tend to auction quota licenses

A production subsidy combined with free trade

Answer the question(s)below based on the following diagram. -Refer to the figure above.The quota shown in the diagram equals

Are tariffs and quotas equivalent in their economic effects? Demonstrate.

An Introduction to International Trade

Tools of Analysis for International Trade Models

The Classical Model of International Trade

The Heckscher-Ohlin Model

Tests of Trade Models: the Leontief Paradox and Its Aftermath

Tariffs

Commercial Policy: History and Practice

Preferential Trade Agreements

International Trade and Economic Growth

The Balance of Payments

The Foreign Exchange Market

International Monetary Systems

Exchange Rates in the Short Run

Exchange Rates in the Long Run

Theories of the Current Account Balance

Open Economy Macroeconomics

International Banking, debt and Risk

Filters

Exam 7: Nontariff Barriers and Arguments for Protection

Countries like the United States use ________ to offset foreign export subsidies.

Higher protection raises the overall level of employment.

Strategic trade policy considerations imply that free trade policies should never be pursued.

Tariffs and quotas tend to be similar in their domestic welfare effects

A(n)________ is an example of a quota where foreigners hold quota licenses.

While tariff levels have been falling over the past several decades,nontariff barriers have been used increasingly.

Quotas redistribute income from consumers to domestic producers.

Write an essay on the national defense argument for tariffs.Include in your discussion points in favor of this idea as well as problems with its implementation.Is protection the best policy to achieve the stated ends? Explain.

Which of the following is a valid argument for protection?

Quotas are government imposed limits on the ________ of goods traded between countries.

The argument that developing countries should nurture their infant domestic industries by protecting them from foreign competition is known as

The United States bans most imports from all of the following countries except

The argument that developing countries with lax environmental standards will attract foreign manufacturers who want to escape stricter standards in their own countries is known as

Which of the following is false?

The welfare effects of a quota depend,to considerable extent,upon

Export subsidies lead to

Governments around the world tend to auction quota licenses

A production subsidy combined with free trade

Answer the question(s)below based on the following diagram. -Refer to the figure above.The quota shown in the diagram equals

Are tariffs and quotas equivalent in their economic effects? Demonstrate.

An Introduction to International Trade

Tools of Analysis for International Trade Models

The Classical Model of International Trade

The Heckscher-Ohlin Model

Tests of Trade Models: the Leontief Paradox and Its Aftermath

Tariffs

Commercial Policy: History and Practice

Preferential Trade Agreements

International Trade and Economic Growth

The Balance of Payments

The Foreign Exchange Market

International Monetary Systems

Exchange Rates in the Short Run

Exchange Rates in the Long Run

Theories of the Current Account Balance

Open Economy Macroeconomics

International Banking, debt and Risk

Filters