Question 1

If the pollution havens hypothesis is true,we should expect world pollution to decline as a result of international trade and globalization.

Accepted Answer

A) True 
 B)False

Question 2

Answer the question(s)below based on the following diagram.
  
-Refer to the figure above.If this were a voluntary restraint agreement,the welfare costs to the importing country would be

Accepted Answer

A) $14,000. 
B) $18,000. 
C) $38,000. 
D) $60,000. 
A) $14,000. 
B) $18,000. 
C) $38,000. 
D) $60,000.

Question 3

Explain why each of the following is not a valid argument for protection.
(a) patriotism
(b) fair play (e.g.level international playing fields)
(c) preservation of jobs

Accepted Answer

(a) Protection can lower welfare,which w

Question 4

Voluntary export restraints and quotas are essentially identical in their welfare effects.

Accepted Answer

A) True 
 B)False

Question 5

Why do countries impose protection even if it lowers economic welfare? Explain fully.

Accepted Answer

Governments may not be interested in max

Question 6

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 the pollution havens hypothesis.

Accepted Answer

A) True 
 B)False

Question 7

The most commonly expressed arguments for protection tend to be largely invalid.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true (assume the small country case)?

Accepted Answer

A) With a quota, an increase in demand leads to a higher price and more imports. 
B) With a tariff, an increase in demand leads to a higher price and more imports. 
C) With either a tariff or a quota, an increase in demand leads to a higher price and more imports. 
D) None of the above are true. 
A) With a quota, an increase in demand leads to a higher price and more imports. 
B) With a tariff, an increase in demand leads to a higher price and more imports. 
C) With either a tariff or a quota, an increase in demand leads to a higher price and more imports. 
D) None of the above are true.

Question 9

Export subsidies lead to lower prices of exportables for both domestic residents and foreigners.

Accepted Answer

A) True 
 B)False

Question 10

Quotas that entirely eliminate trade in a certain product or a number of products are known as

Accepted Answer

A) export tariffs. 
B) deadweight. 
C) ultimate tariffs. 
D) embargoes. 
A) export tariffs. 
B) deadweight. 
C) ultimate tariffs. 
D) embargoes.

Question 11

Like tariffs,quotas tend to lead to

Accepted Answer

A) higher prices and reduced imports. 
B) increased government revenue. 
C) increased consumer surplus. 
D) All of the above. 
A) higher prices and reduced imports. 
B) increased government revenue. 
C) increased consumer surplus. 
D) All of the above.

Question 12

Tariffs and quotas are essentially identical in their effects.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) preservation of the home market. 
B) the escape clause hypothesis. 
C) the earth destruction hypothesis. 
D) institutional fair trade policy. 
A) preservation of the home market. 
B) the escape clause hypothesis. 
C) the earth destruction hypothesis. 
D) institutional fair trade policy.

Question 14

Answer the question(s)below based on the following diagram.
  
-Refer to the figure above.The quota restricts trade by the same amount as a tariff of

Accepted Answer

A) $20. 
B) $30. 
C) $50. 
D) Cannot answer without more information. 
A) $20. 
B) $30. 
C) $50. 
D) Cannot answer without more information.

Question 15

A less costly alternative to protection of national defense industries would be a production subsidy.

Accepted Answer

A) True 
 B)False

Question 16

Answer the question(s)below based on the following diagram.
  
-Refer to the figure above.If the government was to auction quota licenses competitively,it could earn up to

Accepted Answer

A) $2000. 
B) $5000. 
C) $6000. 
D) $10000. 
A) $2000. 
B) $5000. 
C) $6000. 
D) $10000.

Question 17

________ are quotas that lead to a complete elimination of trade.

Accepted Answer

A) Embargoes 
B) Voluntary export restraints 
C) Nontariff barriers 
D) Orderly marketing agreements 
A) Embargoes 
B) Voluntary export restraints 
C) Nontariff barriers 
D) Orderly marketing agreements

Question 18

Which of the following are used as nontariff barriers?

Accepted Answer

A) health and safety standards 
B) government procurement policies 
C) domestic content laws 
D) All of the above 
A) health and safety standards 
B) government procurement policies 
C) domestic content laws 
D) All of the above

Question 19

In the case of national defense protection,________ is a better policy than protection.

Accepted Answer

A) a production subsidy combined with free trade 
B) an income tax 
C) direct government provision of infrastructure 
D) None of the above is better 
A) a production subsidy combined with free trade 
B) an income tax 
C) direct government provision of infrastructure 
D) None of the above is better

Question 20

________ countries tend to depend on tariffs for a relatively large part of their government revenue.

Accepted Answer

A) Developed 
B) Developing 
C) All 
A) Developed 
B) Developing 
C) All

If the pollution havens hypothesis is true,we should expect world pollution to decline as a result of international trade and globalization.

Answer the question(s)below based on the following diagram. -Refer to the figure above.If this were a voluntary restraint agreement,the welfare costs to the importing country would be

Explain why each of the following is not a valid argument for protection. (a) patriotism (b) fair play (e.g.level international playing fields) (c) preservation of jobs

Voluntary export restraints and quotas are essentially identical in their welfare effects.

Why do countries impose protection even if it lowers economic welfare? Explain fully.

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 the pollution havens hypothesis.

The most commonly expressed arguments for protection tend to be largely invalid.

Which of the following is true (assume the small country case)?

Export subsidies lead to lower prices of exportables for both domestic residents and foreigners.

Quotas that entirely eliminate trade in a certain product or a number of products are known as

Like tariffs,quotas tend to lead to

Tariffs and quotas are essentially identical in their effects.

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

Answer the question(s)below based on the following diagram. -Refer to the figure above.The quota restricts trade by the same amount as a tariff of

A less costly alternative to protection of national defense industries would be a production subsidy.

Answer the question(s)below based on the following diagram. -Refer to the figure above.If the government was to auction quota licenses competitively,it could earn up to

________ are quotas that lead to a complete elimination of trade.

Which of the following are used as nontariff barriers?

In the case of national defense protection,________ is a better policy than protection.

________ countries tend to depend on tariffs for a relatively large part of their government revenue.

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

If the pollution havens hypothesis is true,we should expect world pollution to decline as a result of international trade and globalization.

Answer the question(s)below based on the following diagram. -Refer to the figure above.If this were a voluntary restraint agreement,the welfare costs to the importing country would be

Explain why each of the following is not a valid argument for protection. (a) patriotism (b) fair play (e.g.level international playing fields) (c) preservation of jobs

Voluntary export restraints and quotas are essentially identical in their welfare effects.

Why do countries impose protection even if it lowers economic welfare? Explain fully.

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 the pollution havens hypothesis.

The most commonly expressed arguments for protection tend to be largely invalid.

Which of the following is true (assume the small country case)?

Export subsidies lead to lower prices of exportables for both domestic residents and foreigners.

Quotas that entirely eliminate trade in a certain product or a number of products are known as

Like tariffs,quotas tend to lead to

Tariffs and quotas are essentially identical in their effects.

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

Answer the question(s)below based on the following diagram. -Refer to the figure above.The quota restricts trade by the same amount as a tariff of

A less costly alternative to protection of national defense industries would be a production subsidy.

Answer the question(s)below based on the following diagram. -Refer to the figure above.If the government was to auction quota licenses competitively,it could earn up to

________ are quotas that lead to a complete elimination of trade.

Which of the following are used as nontariff barriers?

In the case of national defense protection,________ is a better policy than protection.

________ countries tend to depend on tariffs for a relatively large part of their government revenue.

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