Question 1

List four protectionist policies.

Accepted Answer

Protectionist polici

Question 2

For a nation to have a comparative advantage in a good it must have

Accepted Answer

A)  more resources. 
B)  better resources. 
C)  a lower opportunity cost of producing that good. 
D)  a straight-line production possibilities curve. 
A)  more resources. 
B)  better resources. 
C)  a lower opportunity cost of producing that good. 
D)  a straight-line production possibilities curve.

Question 3

An import quota

Accepted Answer

A)  limits the amount of a good that can be imported, thus decreasing prices. 
B)  limits the amount of a good that can be imported, thus increasing prices. 
C)  increases the amount of a good imported, thus decreasing prices. 
D)  increases the amount of a good imported, thus increasing prices. 
A)  limits the amount of a good that can be imported, thus decreasing prices. 
B)  limits the amount of a good that can be imported, thus increasing prices. 
C)  increases the amount of a good imported, thus decreasing prices. 
D)  increases the amount of a good imported, thus increasing prices.

Question 4

Suppose there are only 2 Nations,A and B,and only two goods,x and y.If Nation A produces only x,it can make 16x per day.If Nation A produces only y,it can make 4y per day.If Nation B produces only x,it can make 20x per day.If Nation B produces only y,it can make 4y per day.After trade begins,Nation ________ will specialize in the production of x and Nation ________ will specialize in the production of y.

Accepted Answer

A)  A; A 
B)  A; B 
C)  B; B 
D)  B; A 
A)  A; A 
B)  A; B 
C)  B; B 
D)  B; A

Question 5

Figure 18.1
-Refer to Figure 18.1.The opportunity cost of producing umbrellas in Duckland is

Accepted Answer

A)  2/3 sunglasses. 
B)  5/6 sunglasses. 
C)  1 1/5 sunglasses. 
D)  1 1/2 sunglasses. 
A)  2/3 sunglasses. 
B)  5/6 sunglasses. 
C)  1 1/5 sunglasses. 
D)  1 1/2 sunglasses.

Question 6

Suppose the United States produces only two goods,textiles and computer chips.If the United States has a comparative advantage in computer chips,a move toward free trade will

Accepted Answer

A)  benefit computer chip workers, harm textile workers, but benefit the nation as a whole. 
B)  harm computer chip workers, benefit textile workers, but benefit the nation as a whole. 
C)  harm computer chip workers, harm textile workers, but benefit the nation as a whole. 
D)  benefit computer chip workers, harm textile workers, but harm the nation as a whole. 
A)  benefit computer chip workers, harm textile workers, but benefit the nation as a whole. 
B)  harm computer chip workers, benefit textile workers, but benefit the nation as a whole. 
C)  harm computer chip workers, harm textile workers, but benefit the nation as a whole. 
D)  benefit computer chip workers, harm textile workers, but harm the nation as a whole.

Question 7

The Dominican Republic-Central American Free Trade Association includes

Accepted Answer

A)  the United States. 
B)  Honduras. 
C)  Costa Rica. 
D)  all of the above 
A)  the United States. 
B)  Honduras. 
C)  Costa Rica. 
D)  all of the above

Question 8

What is dumping and why would firms engage in it?

Accepted Answer

Dumping is when the price charged in a f

Question 9

Figure 18.1
-Refer to Figure 18.1.After trade and specialization begin,the maximum amount of umbrellas that Duckland can consume is

Accepted Answer

A)  90. 
B)  100. 
C)  120. 
D)  150. 
A)  90. 
B)  100. 
C)  120. 
D)  150.

Question 10

Daily Output of Scotland and Poland
   
Table 18.1
-Refer to Table 18.1.Possible terms of trade between Scotland and Poland are

Accepted Answer

A)  1 accordion for 1/4 bagpipe. 
B)  1 bagpipe for 2 accordions. 
C)  1 bagpipe for 1/3 accordion. 
D)  1 accordion for 1 bagpipe. 
A)  1 accordion for 1/4 bagpipe. 
B)  1 bagpipe for 2 accordions. 
C)  1 bagpipe for 1/3 accordion. 
D)  1 accordion for 1 bagpipe.

Question 11

Voluntary Export Restraints (VERs)

Accepted Answer

A)  have the same effect as an import quota. 
B)  are legal under the WTO rules. 
C)  violate the spirit of international trade agreements. 
D)  all of the above 
A)  have the same effect as an import quota. 
B)  are legal under the WTO rules. 
C)  violate the spirit of international trade agreements. 
D)  all of the above

Question 12

Figure 18.3
-Refer to Figure 18.3.With an import ban,domestic production is

Accepted Answer

A)  0. 
B)  60. 
C)  80. 
D)  100. 
A)  0. 
B)  60. 
C)  80. 
D)  100.

Question 13

Figure 18.1
-Refer to Figure 18.1.The terms of trade for Duckland is

Accepted Answer

A)  1 pair of sunglasses for 2/3 of an umbrella. 
B)  1 pair of sunglasses for 5/6 of an umbrella. 
C)  1 pair of sunglasses for 1 1/5 umbrellas. 
D)  1 pair of sunglasses for 1 1/2 umbrellas. 
A)  1 pair of sunglasses for 2/3 of an umbrella. 
B)  1 pair of sunglasses for 5/6 of an umbrella. 
C)  1 pair of sunglasses for 1 1/5 umbrellas. 
D)  1 pair of sunglasses for 1 1/2 umbrellas.

Question 14

The citizens of a country may prefer a tariff to a quota because

Accepted Answer

A)  a quota, but not a tariff, generates additional revenue for the government, which can be used for public programs. 
B)  a quota, but not a tariff, generates additional profits for importers, not the government. 
C)  a tariff, but not a quota, generates additional revenue for the government, which can be used for public programs. 
D)  a tariff, but not a quota, generates additional profits for importers, not the government. 
A)  a quota, but not a tariff, generates additional revenue for the government, which can be used for public programs. 
B)  a quota, but not a tariff, generates additional profits for importers, not the government. 
C)  a tariff, but not a quota, generates additional revenue for the government, which can be used for public programs. 
D)  a tariff, but not a quota, generates additional profits for importers, not the government.

Question 15

Which of the following is NOT an original member of the European Union?

Accepted Answer

A)  The United Kingdom 
B)  Belgium 
C)  Germany 
D)  France 
A)  The United Kingdom 
B)  Belgium 
C)  Germany 
D)  France

Question 16

The difficulty with enforcing anti-dumping laws is that predatory pricing is difficult to determine if the lower price is due to

Accepted Answer

A)  price discrimination. 
B)  higher costs. 
C)  firm generosity. 
D)  economies of scale. 
A)  price discrimination. 
B)  higher costs. 
C)  firm generosity. 
D)  economies of scale.

Question 17

The production possibilities curve shows the combinations of goods that can be

Accepted Answer

A)  consumed by a nation before trade begins. 
B)  produced by a nation before trading begins. 
C)  produced by a nation after trade begins. 
D)  all of the above 
A)  consumed by a nation before trade begins. 
B)  produced by a nation before trading begins. 
C)  produced by a nation after trade begins. 
D)  all of the above

Question 18

The argument that calls for the trade protection of only newly developing industries is known as the ________ argument.

Accepted Answer

A)  learning by doing 
B)  predatory dumping 
C)  infant industry 
D)  developing nation 
A)  learning by doing 
B)  predatory dumping 
C)  infant industry 
D)  developing nation

Question 19

Figure 18.2
-Refer to Figure 18.2.The opportunity cost of producing tomatoes in Pizzaland is

Accepted Answer

A)  0.4 cheese. 
B)  0.6 cheese. 
C)  1.67 cheese. 
D)  2.5 cheese. 
A)  0.4 cheese. 
B)  0.6 cheese. 
C)  1.67 cheese. 
D)  2.5 cheese.

Question 20

Daily Output of Scotland and Poland
   
Table 18.1
-Refer to Table 18.1.The opportunity cost of an accordion in Scotland is

Accepted Answer

A)  1/3 of a bagpipe. 
B)  1/2 of a bagpipe. 
C)  2 bagpipes. 
D)  6 bagpipes. 
A)  1/3 of a bagpipe. 
B)  1/2 of a bagpipe. 
C)  2 bagpipes. 
D)  6 bagpipes.

List four protectionist policies.

For a nation to have a comparative advantage in a good it must have

An import quota

Figure 18.1 -Refer to Figure 18.1.The opportunity cost of producing umbrellas in Duckland is

Suppose the United States produces only two goods,textiles and computer chips.If the United States has a comparative advantage in computer chips,a move toward free trade will

The Dominican Republic-Central American Free Trade Association includes

What is dumping and why would firms engage in it?

Figure 18.1 -Refer to Figure 18.1.After trade and specialization begin,the maximum amount of umbrellas that Duckland can consume is

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.Possible terms of trade between Scotland and Poland are

Voluntary Export Restraints (VERs)

Figure 18.3 -Refer to Figure 18.3.With an import ban,domestic production is

Figure 18.1 -Refer to Figure 18.1.The terms of trade for Duckland is

The citizens of a country may prefer a tariff to a quota because

Which of the following is NOT an original member of the European Union?

The difficulty with enforcing anti-dumping laws is that predatory pricing is difficult to determine if the lower price is due to

The production possibilities curve shows the combinations of goods that can be

The argument that calls for the trade protection of only newly developing industries is known as the ________ argument.

Figure 18.2 -Refer to Figure 18.2.The opportunity cost of producing tomatoes in Pizzaland is

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.The opportunity cost of an accordion in Scotland is

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand,supply,and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

Filters

Exam 18: International Trade and Public Policy

List four protectionist policies.

For a nation to have a comparative advantage in a good it must have

An import quota

Figure 18.1 -Refer to Figure 18.1.The opportunity cost of producing umbrellas in Duckland is

Suppose the United States produces only two goods,textiles and computer chips.If the United States has a comparative advantage in computer chips,a move toward free trade will

The Dominican Republic-Central American Free Trade Association includes

What is dumping and why would firms engage in it?

Figure 18.1 -Refer to Figure 18.1.After trade and specialization begin,the maximum amount of umbrellas that Duckland can consume is

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.Possible terms of trade between Scotland and Poland are

Voluntary Export Restraints (VERs)

Figure 18.3 -Refer to Figure 18.3.With an import ban,domestic production is

Figure 18.1 -Refer to Figure 18.1.The terms of trade for Duckland is

The citizens of a country may prefer a tariff to a quota because

Which of the following is NOT an original member of the European Union?

The difficulty with enforcing anti-dumping laws is that predatory pricing is difficult to determine if the lower price is due to

The production possibilities curve shows the combinations of goods that can be

The argument that calls for the trade protection of only newly developing industries is known as the ________ argument.

Figure 18.2 -Refer to Figure 18.2.The opportunity cost of producing tomatoes in Pizzaland is

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.The opportunity cost of an accordion in Scotland is

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand,supply,and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

Filters