Question 1

Since 1973,in the United States wages of skilled workers have

Accepted Answer

A)  risen more slowly than those of unskilled workers. 
B)  fallen due to foreign trade. 
C)  remained constant. 
D)  risen faster than those of unskilled workers. 
A)  risen more slowly than those of unskilled workers. 
B)  fallen due to foreign trade. 
C)  remained constant. 
D)  risen faster than those of unskilled workers.

Question 2

If France can produce grapes at a higher opportunity cost than any other nation,France is said to have a(n)________ in the production of grapes.

Accepted Answer

A)  autarky 
B)  absolute advantage 
C)  comparative disadvantage 
D)  comparative advantage 
A)  autarky 
B)  absolute advantage 
C)  comparative disadvantage 
D)  comparative advantage

Question 3

Figure 18.3
-Refer to Figure 18.3.With a tariff,the per unit government revenue is

Accepted Answer

A)  $0. 
B)  $2. 
C)  $8. 
D)  $10. 
A)  $0. 
B)  $2. 
C)  $8. 
D)  $10.

Question 4

The APEC (Asia Pacific Economic Cooperation)has more members than the EU.

Accepted Answer

A) True 
 B)False

Question 5

What countries are members of the DR-CAFTA?

Accepted Answer

the United States,th

Question 6

Daily Output of Japan and United States
   
Table 18.2
-Refer to Table 18.2.The opportunity cost of a tractor in the United States is

Accepted Answer

A)  1/4 of a stereo. 
B)  1/2 of a stereo. 
C)  2 stereos. 
D)  4 stereos. 
A)  1/4 of a stereo. 
B)  1/2 of a stereo. 
C)  2 stereos. 
D)  4 stereos.

Question 7

Recall the Application about the World Trade Organization (WTO) to answer the following question(s).
-According to this Application,the United States was found to have violated international trade laws by imposing excessive tariffs on ________ of goods such as solar panels.

Accepted Answer

A)  U.S. exports 
B)  Chinese imports 
C)  all imports 
D)  all exports 
A)  U.S. exports 
B)  Chinese imports 
C)  all imports 
D)  all exports

Question 8

Which of the following situations will arise in the domestic market following the imposition of a voluntary export restraint?

Accepted Answer

A)  Imports increase, domestic production increases, prices increase. 
B)  Imports decrease, domestic production increases, prices increase. 
C)  Imports increase, domestic production decreases, prices decrease. 
D)  Imports decrease, domestic production increases, prices decrease. 
A)  Imports increase, domestic production increases, prices increase. 
B)  Imports decrease, domestic production increases, prices increase. 
C)  Imports increase, domestic production decreases, prices decrease. 
D)  Imports decrease, domestic production increases, prices decrease.

Question 9

Suppose Japanese auto manufacturers voluntarily reduce exports to the United States Who will benefit from a voluntary export restraint? Who will get hurt from a voluntary export restraint? Explain.

Accepted Answer

Aside from the U.S.auto manufacturers,Ja

Question 10

Figure 18.1
-Refer to Figure 18.1.In autarky,the maximum amount of sunglasses that Duckland can produce is

Accepted Answer

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

Question 11

Which of the following is a problem of subsidizing an industry to help it establish a world monopoly?

Accepted Answer

A)  All monopolies create deadweight losses. 
B)  A nation may pick the wrong industry to subsidize. 
C)  If both the domestic firm and the foreign firm enter the market, nations might end up subsidizing two money losing firms. 
D)  Both B and C are correct. 
A)  All monopolies create deadweight losses. 
B)  A nation may pick the wrong industry to subsidize. 
C)  If both the domestic firm and the foreign firm enter the market, nations might end up subsidizing two money losing firms. 
D)  Both B and C are correct.

Question 12

Daily Output of Scotland and Poland
   
Table 18.1
-Refer to Table 18.1.Poland has a comparative advantage in

Accepted Answer

A)  accordions. 
B)  bagpipes. 
C)  both accordions and bagpipes. 
D)  neither accordions nor bagpipes. 
A)  accordions. 
B)  bagpipes. 
C)  both accordions and bagpipes. 
D)  neither accordions nor bagpipes.

Question 13

When President Jefferson declared a self-imposed embargo on international shipping between 1807-1809,it may be said that the United States came very close to

Accepted Answer

A)  autarky. 
B)  free trade. 
C)  comparative advantage. 
D)  specialization. 
A)  autarky. 
B)  free trade. 
C)  comparative advantage. 
D)  specialization.

Question 14

Figure 18.2
-Refer to Figure 18.2.After trade and specialization begin,the maximum amount of tomatoes that Pizzaland can consume is

Accepted Answer

A)  120. 
B)  90. 
C)  80. 
D)  60. 
A)  120. 
B)  90. 
C)  80. 
D)  60.

Question 15

Why might trade cause income inequality?

Accepted Answer

The people of some countries have a comp

Question 16

Daily Output of Japan and United States
   
Table 18.2
-Refer to Table 18.2.Possible terms of trade between the United States and Japan are

Accepted Answer

A)  1 stereo for 8 tractors. 
B)  1 tractor for 3 stereos. 
C)  1 stereo for 1/3 of a tractor. 
D)  1 tractor for 1/3 of a stereo. 
A)  1 stereo for 8 tractors. 
B)  1 tractor for 3 stereos. 
C)  1 stereo for 1/3 of a tractor. 
D)  1 tractor for 1/3 of a stereo.

Question 17

When is an import ban the same as an import quota?

Accepted Answer

A)  when the quota is zero 
B)  never 
C)  when all the goods under the quota is taxed 
D)  when the good under the import ban is taxed 
A)  when the quota is zero 
B)  never 
C)  when all the goods under the quota is taxed 
D)  when the good under the import ban is taxed

Question 18

Which of the following situations will arise in the domestic market following the imposition of an import ban?

Accepted Answer

A)  Domestic production decreases and prices increase. 
B)  Domestic production decreases and prices decrease. 
C)  Domestic production increases and prices increase. 
D)  Domestic production increases and prices decrease. 
A)  Domestic production decreases and prices increase. 
B)  Domestic production decreases and prices decrease. 
C)  Domestic production increases and prices increase. 
D)  Domestic production increases and prices decrease.

Question 19

Dumping occurs when a firm

Accepted Answer

A)  charges a higher price to a foreign market than either its home market or the production costs. 
B)  generates toxic waste when producing export goods and then dumps the waste in the ocean. 
C)  stops selling to a foreign market due to excessive tariffs. 
D)  charges a lower price to a foreign market than either its home market or the production costs. 
A)  charges a higher price to a foreign market than either its home market or the production costs. 
B)  generates toxic waste when producing export goods and then dumps the waste in the ocean. 
C)  stops selling to a foreign market due to excessive tariffs. 
D)  charges a lower price to a foreign market than either its home market or the production costs.

Question 20

Import bans,import quotas,voluntary export restraints,and tariffs on goods all

Accepted Answer

A)  increase equilibrium quantity and prices. 
B)  decrease equilibrium quantity and prices. 
C)  increase equilibrium quantities, but decrease prices. 
D)  decrease equilibrium quantities, but increase prices. 
A)  increase equilibrium quantity and prices. 
B)  decrease equilibrium quantity and prices. 
C)  increase equilibrium quantities, but decrease prices. 
D)  decrease equilibrium quantities, but increase prices.

Since 1973,in the United States wages of skilled workers have

If France can produce grapes at a higher opportunity cost than any other nation,France is said to have a(n)________ in the production of grapes.

Figure 18.3 -Refer to Figure 18.3.With a tariff,the per unit government revenue is

The APEC (Asia Pacific Economic Cooperation)has more members than the EU.

What countries are members of the DR-CAFTA?

Daily Output of Japan and United States Table 18.2 -Refer to Table 18.2.The opportunity cost of a tractor in the United States is

Recall the Application about the World Trade Organization (WTO) to answer the following question(s). -According to this Application,the United States was found to have violated international trade laws by imposing excessive tariffs on ________ of goods such as solar panels.

Which of the following situations will arise in the domestic market following the imposition of a voluntary export restraint?

Suppose Japanese auto manufacturers voluntarily reduce exports to the United States Who will benefit from a voluntary export restraint? Who will get hurt from a voluntary export restraint? Explain.

Figure 18.1 -Refer to Figure 18.1.In autarky,the maximum amount of sunglasses that Duckland can produce is

Which of the following is a problem of subsidizing an industry to help it establish a world monopoly?

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.Poland has a comparative advantage in

When President Jefferson declared a self-imposed embargo on international shipping between 1807-1809,it may be said that the United States came very close to

Figure 18.2 -Refer to Figure 18.2.After trade and specialization begin,the maximum amount of tomatoes that Pizzaland can consume is

Why might trade cause income inequality?

Daily Output of Japan and United States Table 18.2 -Refer to Table 18.2.Possible terms of trade between the United States and Japan are

When is an import ban the same as an import quota?

Which of the following situations will arise in the domestic market following the imposition of an import ban?

Dumping occurs when a firm

Import bans,import quotas,voluntary export restraints,and tariffs on goods all

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

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Exam 18: International Trade and Public Policy

Since 1973,in the United States wages of skilled workers have

If France can produce grapes at a higher opportunity cost than any other nation,France is said to have a(n)________ in the production of grapes.

Figure 18.3 -Refer to Figure 18.3.With a tariff,the per unit government revenue is

The APEC (Asia Pacific Economic Cooperation)has more members than the EU.

What countries are members of the DR-CAFTA?

Daily Output of Japan and United States Table 18.2 -Refer to Table 18.2.The opportunity cost of a tractor in the United States is

Recall the Application about the World Trade Organization (WTO) to answer the following question(s). -According to this Application,the United States was found to have violated international trade laws by imposing excessive tariffs on ________ of goods such as solar panels.

Which of the following situations will arise in the domestic market following the imposition of a voluntary export restraint?

Suppose Japanese auto manufacturers voluntarily reduce exports to the United States Who will benefit from a voluntary export restraint? Who will get hurt from a voluntary export restraint? Explain.

Figure 18.1 -Refer to Figure 18.1.In autarky,the maximum amount of sunglasses that Duckland can produce is

Which of the following is a problem of subsidizing an industry to help it establish a world monopoly?

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.Poland has a comparative advantage in

When President Jefferson declared a self-imposed embargo on international shipping between 1807-1809,it may be said that the United States came very close to

Figure 18.2 -Refer to Figure 18.2.After trade and specialization begin,the maximum amount of tomatoes that Pizzaland can consume is

Why might trade cause income inequality?

Daily Output of Japan and United States Table 18.2 -Refer to Table 18.2.Possible terms of trade between the United States and Japan are

When is an import ban the same as an import quota?

Which of the following situations will arise in the domestic market following the imposition of an import ban?

Dumping occurs when a firm

Import bans,import quotas,voluntary export restraints,and tariffs on goods all

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