Question 1

The rate at which nations will exchange goods and service is known as the

Accepted Answer

A)  exchange rate. 
B)  transfer rate. 
C)  terms of trade. 
D)  terms of exchange. 
A)  exchange rate. 
B)  transfer rate. 
C)  terms of trade. 
D)  terms of exchange.

Question 2

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

Accepted Answer

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

Question 3

Daily Output of Japan and United States
   
Table 18.2
-Refer to Table 18.2.The United States has a comparative advantage in the production of

Accepted Answer

A)  stereos. 
B)  tractors. 
C)  both stereos and tractors. 
D)  neither stereos nor tractors. 
A)  stereos. 
B)  tractors. 
C)  both stereos and tractors. 
D)  neither stereos nor tractors.

Question 4

A tax on an imported good is known as a(n)

Accepted Answer

A)  import ban. 
B)  tariff. 
C)  voluntary export restraint. 
D)  import quota. 
A)  import ban. 
B)  tariff. 
C)  voluntary export restraint. 
D)  import quota.

Question 5

Which of the following is NOT a reason to follow protectionist trade policies?

Accepted Answer

A)  to protect an infant industry from foreign competitors 
B)  to help firms establish a world monopoly in a particular market 
C)  to protect domestic workers from foreign competition 
D)  because buying domestic goods is a patriotic act 
A)  to protect an infant industry from foreign competitors 
B)  to help firms establish a world monopoly in a particular market 
C)  to protect domestic workers from foreign competition 
D)  because buying domestic goods is a patriotic act

Question 6

The combinations of goods a nation can consume after trade and specialization begin are illustrated by the ________ curve.

Accepted Answer

A)  supply 
B)  production possibilities 
C)  consumption possibilities 
D)  demand 
A)  supply 
B)  production possibilities 
C)  consumption possibilities 
D)  demand

Question 7

Recall the Application about the impact Chinese imports have on U.S. labor markets to answer the following question(s).
-According to the Application,Chinese Imports have only been disadvantageous to U.S.local communities.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following groups of countries are members of NAFTA?

Accepted Answer

A)  Japan, Canada, and Mexico 
B)  The United States, Japan, and Mexico 
C)  The United States, France, and Germany 
D)  The United States, Canada, and Mexico 
A)  Japan, Canada, and Mexico 
B)  The United States, Japan, and Mexico 
C)  The United States, France, and Germany 
D)  The United States, Canada, and Mexico

Question 9

A tariff is a

Accepted Answer

A)  tax on an imported good. 
B)  tax on a domestically produced goods. 
C)  limit on the amount a good that can be imported. 
D)  voluntary reduction of exports. 
A)  tax on an imported good. 
B)  tax on a domestically produced goods. 
C)  limit on the amount a good that can be imported. 
D)  voluntary reduction of exports.

Question 10

The equilibrium price under an import quota is above the price that occurs with free trade.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following trade agreements provides for the development of a single market among its members?

Accepted Answer

A)  North American Free Trade Agreement 
B)  World Trade Organization 
C)  European Union 
D)  Asian Pacific Economic Cooperation 
A)  North American Free Trade Agreement 
B)  World Trade Organization 
C)  European Union 
D)  Asian Pacific Economic Cooperation

Question 12

Suppose Canada produces only two goods,corn and automobiles.If Canada has a comparative advantage in automobiles,a move toward free trade will

Accepted Answer

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

Question 13

Figure 18.4
-Refer to Figure 18.4.With an import ban,how many artichokes are produced domestically in Duckland?

Accepted Answer

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

Question 14

Figure 18.3
-Refer to Figure 18.3.With free trade,the equilibrium price is

Accepted Answer

A)  $0. 
B)  $8. 
C)  $10. 
D)  $12. 
A)  $0. 
B)  $8. 
C)  $10. 
D)  $12.

Question 15

If we eliminated our textile tariffs,the dislocated workers could easily switch to other jobs.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following explains why the world market may support only one or two firms worldwide?

Accepted Answer

A)  large economies of scale 
B)  comparative advantage 
C)  learning by doing 
D)  constant returns to scale 
A)  large economies of scale 
B)  comparative advantage 
C)  learning by doing 
D)  constant returns to scale

Question 17

A limit on the amount of a good that can be imported is known as

Accepted Answer

A)  a tax. 
B)  an export agreement. 
C)  a tariff. 
D)  an import quota. 
A)  a tax. 
B)  an export agreement. 
C)  a tariff. 
D)  an import quota.

Question 18

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

Accepted Answer

A)  $2. 
B)  $8. 
C)  $10. 
D)  $12. 
A)  $2. 
B)  $8. 
C)  $10. 
D)  $12.

Question 19

National policy always overrides free trade in matters of environmental concern.

Accepted Answer

A) True 
 B)False

Question 20

The United States has a lot of both skilled and unskilled workers in the economy.Suppose that the United States' comparative advantage is in industries that require more skilled workers.Instead of using protectionist policies,what other policy can the government use to dampen the negative effects unskilled workers may face a result of free trade?

Accepted Answer

In the short run,the governmen

The rate at which nations will exchange goods and service is known as the

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

Daily Output of Japan and United States Table 18.2 -Refer to Table 18.2.The United States has a comparative advantage in the production of

A tax on an imported good is known as a(n)

Which of the following is NOT a reason to follow protectionist trade policies?

The combinations of goods a nation can consume after trade and specialization begin are illustrated by the ________ curve.

Recall the Application about the impact Chinese imports have on U.S. labor markets to answer the following question(s). -According to the Application,Chinese Imports have only been disadvantageous to U.S.local communities.

Which of the following groups of countries are members of NAFTA?

A tariff is a

The equilibrium price under an import quota is above the price that occurs with free trade.

Which of the following trade agreements provides for the development of a single market among its members?

Suppose Canada produces only two goods,corn and automobiles.If Canada has a comparative advantage in automobiles,a move toward free trade will

Figure 18.4 -Refer to Figure 18.4.With an import ban,how many artichokes are produced domestically in Duckland?

Figure 18.3 -Refer to Figure 18.3.With free trade,the equilibrium price is

If we eliminated our textile tariffs,the dislocated workers could easily switch to other jobs.

Which of the following explains why the world market may support only one or two firms worldwide?

A limit on the amount of a good that can be imported is known as

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

National policy always overrides free trade in matters of environmental concern.

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

The rate at which nations will exchange goods and service is known as the

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

Daily Output of Japan and United States Table 18.2 -Refer to Table 18.2.The United States has a comparative advantage in the production of

A tax on an imported good is known as a(n)

Which of the following is NOT a reason to follow protectionist trade policies?

The combinations of goods a nation can consume after trade and specialization begin are illustrated by the ________ curve.

Recall the Application about the impact Chinese imports have on U.S. labor markets to answer the following question(s). -According to the Application,Chinese Imports have only been disadvantageous to U.S.local communities.

Which of the following groups of countries are members of NAFTA?

A tariff is a

The equilibrium price under an import quota is above the price that occurs with free trade.

Which of the following trade agreements provides for the development of a single market among its members?

Suppose Canada produces only two goods,corn and automobiles.If Canada has a comparative advantage in automobiles,a move toward free trade will

Figure 18.4 -Refer to Figure 18.4.With an import ban,how many artichokes are produced domestically in Duckland?

Figure 18.3 -Refer to Figure 18.3.With free trade,the equilibrium price is

If we eliminated our textile tariffs,the dislocated workers could easily switch to other jobs.

Which of the following explains why the world market may support only one or two firms worldwide?

A limit on the amount of a good that can be imported is known as

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

National policy always overrides free trade in matters of environmental concern.

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