Question 1

Explain how an import tariff can result in an import ban.

Accepted Answer

If the import tariff is high enough that

Question 2

Among the rationales for protection is that it helps the domestic economy grow.

Accepted Answer

A) True 
 B)False

Question 3

What countries are in NAFTA?

Accepted Answer

Canada,Mex

Question 4

The World Trade Organization was formed to enforce GATT and other international trade agreements.

Accepted Answer

A) True 
 B)False

Question 5

As a whole,nations are better off after trade and specialization because

Accepted Answer

A)  nations can consume along their consumption possibilities curve, which is above of their production possibilities curve. 
B)  nations can consume along their consumption possibilities curve, which is below of their production possibilities curve. 
C)  nations can consume along their production possibilities curve, which is above of their consumption possibilities curve. 
D)  nations experience an outward shift of their production possibilities curve. 
A)  nations can consume along their consumption possibilities curve, which is above of their production possibilities curve. 
B)  nations can consume along their consumption possibilities curve, which is below of their production possibilities curve. 
C)  nations can consume along their production possibilities curve, which is above of their consumption possibilities curve. 
D)  nations experience an outward shift of their production possibilities curve.

Question 6

Which of the following situations will arise in the domestic market following the imposition of a tariff?

Accepted Answer

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

Question 7

What are the similarities and differences between an import tariff and a voluntary export restraint?

Accepted Answer

Both import tariffs and voluntary export

Question 8

Figure 18.3
-Refer to Figure 18.3.With a tariff or quota,the equilibrium quantity is

Accepted Answer

A)  40. 
B)  60. 
C)  80. 
D)  100. 
A)  40. 
B)  60. 
C)  80. 
D)  100.

Question 9

Consider the following weekly production possibilities of bagpipes and accordions in Poland and Scotland:
   
What is the possible range of terms of trade between Poland and Scotland?

Accepted Answer

A possible set of terms of tra

Question 10

A voluntary export restraint is a trade policy by which a nation agrees to limit its

Accepted Answer

A)  exports of a good in order to avoid more restrictive trade policies. 
B)  imports of a good, but only under the threat of more restrictive trade policies. 
C)  exports of a good in order to increase employment. 
D)  imports of a good. 
A)  exports of a good in order to avoid more restrictive trade policies. 
B)  imports of a good, but only under the threat of more restrictive trade policies. 
C)  exports of a good in order to increase employment. 
D)  imports of a good.

Question 11

Outsourcing occurs when a firm produces components of their good or service in another country.

Accepted Answer

A) True 
 B)False

Question 12

Figure 18.3
-Refer to Figure 18.3.With an import ban,the equilibrium quantity is

Accepted Answer

A)  40. 
B)  60. 
C)  80. 
D)  100. 
A)  40. 
B)  60. 
C)  80. 
D)  100.

Question 13

Figure 18.4
-Refer to Figure 18.4.With free trade,what is the equilibrium quantity of artichokes in Duckland?

Accepted Answer

A)  85 
B)  75 
C)  65 
D)  30 
A)  85 
B)  75 
C)  65 
D)  30

Question 14

________ occurs when a firm cuts prices below production costs in a deliberate attempt to drive competitors out of business.

Accepted Answer

A)  Voracious dumping 
B)  Price discrimination 
C)  Predatory pricing 
D)  Deliberate dumping 
A)  Voracious dumping 
B)  Price discrimination 
C)  Predatory pricing 
D)  Deliberate dumping

Question 15

What does the World Trade Organization do?

Accepted Answer

The WTO oversees GATT and othe

Question 16

A restriction on imports is likely to cause further restrictions on trade.

Accepted Answer

A) True 
 B)False

Question 17

Protection shields domestic workers from foreign competition.

Accepted Answer

A) True 
 B)False

Question 18

An import quota is illegal under the rules of the

Accepted Answer

A)  World Trade Organization. 
B)  Congress. 
C)  Federal Reserve. 
D)  World Wide Web. 
A)  World Trade Organization. 
B)  Congress. 
C)  Federal Reserve. 
D)  World Wide Web.

Question 19

Suppose France produces only two goods,airplanes and grapes.If France has a comparative advantage in grapes,a move toward free trade will

Accepted Answer

A)  harm grape workers, benefit airplane workers, but benefit the nation as a whole. 
B)  harm grape workers, harm airplane workers, but benefit the nation as a whole. 
C)  benefit grape workers, harm airplane workers, but harm the nation as a whole. 
D)  benefit grape workers, harm airplane workers, but benefit the nation as a whole. 
A)  harm grape workers, benefit airplane workers, but benefit the nation as a whole. 
B)  harm grape workers, harm airplane workers, but benefit the nation as a whole. 
C)  benefit grape workers, harm airplane workers, but harm the nation as a whole. 
D)  benefit grape workers, harm airplane workers, but benefit the nation as a whole.

Question 20

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

Accepted Answer

A)  1/3 of an accordion. 
B)  1/2 of an accordion. 
C)  3 accordions. 
D)  6 accordions. 
A)  1/3 of an accordion. 
B)  1/2 of an accordion. 
C)  3 accordions. 
D)  6 accordions.

Explain how an import tariff can result in an import ban.

Among the rationales for protection is that it helps the domestic economy grow.

What countries are in NAFTA?

The World Trade Organization was formed to enforce GATT and other international trade agreements.

As a whole,nations are better off after trade and specialization because

Which of the following situations will arise in the domestic market following the imposition of a tariff?

What are the similarities and differences between an import tariff and a voluntary export restraint?

Figure 18.3 -Refer to Figure 18.3.With a tariff or quota,the equilibrium quantity is

Consider the following weekly production possibilities of bagpipes and accordions in Poland and Scotland: What is the possible range of terms of trade between Poland and Scotland?

A voluntary export restraint is a trade policy by which a nation agrees to limit its

Outsourcing occurs when a firm produces components of their good or service in another country.

Figure 18.3 -Refer to Figure 18.3.With an import ban,the equilibrium quantity is

Figure 18.4 -Refer to Figure 18.4.With free trade,what is the equilibrium quantity of artichokes in Duckland?

________ occurs when a firm cuts prices below production costs in a deliberate attempt to drive competitors out of business.

What does the World Trade Organization do?

A restriction on imports is likely to cause further restrictions on trade.

Protection shields domestic workers from foreign competition.

An import quota is illegal under the rules of the

Suppose France produces only two goods,airplanes and grapes.If France has a comparative advantage in grapes,a move toward free trade will

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.The opportunity cost of a bagpipe 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

Explain how an import tariff can result in an import ban.

Among the rationales for protection is that it helps the domestic economy grow.

What countries are in NAFTA?

The World Trade Organization was formed to enforce GATT and other international trade agreements.

As a whole,nations are better off after trade and specialization because

Which of the following situations will arise in the domestic market following the imposition of a tariff?

What are the similarities and differences between an import tariff and a voluntary export restraint?

Figure 18.3 -Refer to Figure 18.3.With a tariff or quota,the equilibrium quantity is

Consider the following weekly production possibilities of bagpipes and accordions in Poland and Scotland: What is the possible range of terms of trade between Poland and Scotland?

A voluntary export restraint is a trade policy by which a nation agrees to limit its

Outsourcing occurs when a firm produces components of their good or service in another country.

Figure 18.3 -Refer to Figure 18.3.With an import ban,the equilibrium quantity is

Figure 18.4 -Refer to Figure 18.4.With free trade,what is the equilibrium quantity of artichokes in Duckland?

________ occurs when a firm cuts prices below production costs in a deliberate attempt to drive competitors out of business.

What does the World Trade Organization do?

A restriction on imports is likely to cause further restrictions on trade.

Protection shields domestic workers from foreign competition.

An import quota is illegal under the rules of the

Suppose France produces only two goods,airplanes and grapes.If France has a comparative advantage in grapes,a move toward free trade will

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.The opportunity cost of a bagpipe 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