Question 1

An import ban results in

Accepted Answer

A)  a decrease in the supply of the product. 
B)  an increase in the product's price. 
C)  a decrease in the quantity of the product bought and sold. 
D)  all of the above 
A)  a decrease in the supply of the product. 
B)  an increase in the product's price. 
C)  a decrease in the quantity of the product bought and sold. 
D)  all of the above

Question 2

Daily Output of Japan and United States
   
Table 18.2
-Refer to Table 18.2.After trade begins,________ will specialize in the production of stereos and ________ will specialize in the production of tractors.

Accepted Answer

A)  the United States; the United States 
B)  the United States; Japan 
C)  Japan; the United States 
D)  Japan; Japan 
A)  the United States; the United States 
B)  the United States; Japan 
C)  Japan; the United States 
D)  Japan; Japan

Question 3

The Asian Pacific Economic Cooperation (APEC)was modeled after NAFTA.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

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

Question 5

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

Accepted Answer

A)  150. 
B)  120. 
C)  90. 
D)  60. 
A)  150. 
B)  120. 
C)  90. 
D)  60.

Question 6

Consider the following daily production possibilities of apples and bananas in Ireland and Scotland:
   
Suppose the production of apples requires skilled workers while banana production requires unskilled workers.If Scotland and Ireland choose to trade with each other in order to take advantage of their opportunity costs:
a)Who will sell bananas? Who will sell Apples?
b)Which worker will gain in Scotland? Which worker will be hurt?

Accepted Answer

a)Scotland will sell bananas because the

Question 7

What is the GATT?

Accepted Answer

The General Agreement on Tarif

Question 8

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

Accepted Answer

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

Question 9

Environmental regulations increase trade and economic well-being.

Accepted Answer

A) True 
 B)False

Question 10

What are import licenses?

Accepted Answer

A)  These are rights, issued by the government, to import goods. 
B)  These are rights, issued by a foreign government, to import goods. 
C)  These are rights, issued by the government, to buy foreign exchange used to import goods. 
D)  These are rights, issued by the government, to produce goods similar to the imported goods. 
A)  These are rights, issued by the government, to import goods. 
B)  These are rights, issued by a foreign government, to import goods. 
C)  These are rights, issued by the government, to buy foreign exchange used to import goods. 
D)  These are rights, issued by the government, to produce goods similar to the imported goods.

Question 11

Which of the following statements is FALSE?

Accepted Answer

A)  The production possibilities curve shows the combinations of goods that can be consumed by a nation before trade begins. 
B)  The production possibilities curve shows the combinations of goods that can be consumed by a nation after trade and specialization begins. 
C)  The production possibilities curve shows the combinations of goods that can be produced by a nation before trading begins. 
D)  The production possibilities curve shows the combinations of goods that can be produced by a nation after trade and specialization begins. 
A)  The production possibilities curve shows the combinations of goods that can be consumed by a nation before trade begins. 
B)  The production possibilities curve shows the combinations of goods that can be consumed by a nation after trade and specialization begins. 
C)  The production possibilities curve shows the combinations of goods that can be produced by a nation before trading begins. 
D)  The production possibilities curve shows the combinations of goods that can be produced by a nation after trade and specialization begins.

Question 12

Regional agreements help GATT reach agreements faster.

Accepted Answer

A) True 
 B)False

Question 13

Figure 18.4
-Refer to Figure 18.4.With free trade,how many artichokes are produced domestically in Duckland?

Accepted Answer

A)  75 
B)  65 
C)  30 
D)  0 
A)  75 
B)  65 
C)  30 
D)  0

Question 14

If the production possibilities curve is drawn as a straight line it means that

Accepted Answer

A)  the tradeoff between the two goods is increasing. 
B)  the tradeoff between the two goods is decreasing. 
C)  the tradeoff between the two goods is constant. 
D)  no tradeoff is possible between the two goods. 
A)  the tradeoff between the two goods is increasing. 
B)  the tradeoff between the two goods is decreasing. 
C)  the tradeoff between the two goods is constant. 
D)  no tradeoff is possible between the two goods.

Question 15

Figure 18.1
-Refer to Figure 18.1.Duckland has a comparative advantage in the production of

Accepted Answer

A)  sunglasses. 
B)  umbrellas. 
C)  both umbrellas and sunglasses. 
D)  neither umbrellas nor sunglasses. 
A)  sunglasses. 
B)  umbrellas. 
C)  both umbrellas and sunglasses. 
D)  neither umbrellas nor sunglasses.

Question 16

Figure 18.5
-For the good in Figure 18.5,with the tariff,the people in the country will buy

Accepted Answer

A)  Q₁. 
B)  Q₂. 
C)  Q₄. 
D)  Q₅. 
A)  Q₁. 
B)  Q₂. 
C)  Q₄. 
D)  Q₅.

Question 17

Figure 18.3
-Refer to Figure 18.3.With free trade,domestic production is

Accepted Answer

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

Question 18

Which of the following trade policies raises prices for domestic consumers?

Accepted Answer

A)  import quotas 
B)  tariffs 
C)  voluntary export restraints 
D)  all of the above 
A)  import quotas 
B)  tariffs 
C)  voluntary export restraints 
D)  all of the above

Question 19

A possible reason to impose a protectionist policy such as a tariff is to

Accepted Answer

A)  increase the welfare of domestic consumers. 
B)  slow domestic production. 
C)  aid other nations in developing their own industries. 
D)  protect domestic workers from foreign competition. 
A)  increase the welfare of domestic consumers. 
B)  slow domestic production. 
C)  aid other nations in developing their own industries. 
D)  protect domestic workers from foreign competition.

Question 20

The terms of trade refers to the

Accepted Answer

A)  slope of the production possibilities curve. 
B)  relative amounts of the goods that will be exchanged for each other in trade. 
C)  opportunity cost of producing each good in each country. 
D)  all of the above 
A)  slope of the production possibilities curve. 
B)  relative amounts of the goods that will be exchanged for each other in trade. 
C)  opportunity cost of producing each good in each country. 
D)  all of the above

An import ban results in

Daily Output of Japan and United States Table 18.2 -Refer to Table 18.2.After trade begins, will specialize in the production of stereos and will specialize in the production of tractors.

The Asian Pacific Economic Cooperation (APEC)was modeled after NAFTA.

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

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

What is the GATT?

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

Environmental regulations increase trade and economic well-being.

What are import licenses?

Which of the following statements is FALSE?

Regional agreements help GATT reach agreements faster.

Figure 18.4 -Refer to Figure 18.4.With free trade,how many artichokes are produced domestically in Duckland?

If the production possibilities curve is drawn as a straight line it means that

Figure 18.1 -Refer to Figure 18.1.Duckland has a comparative advantage in the production of

Figure 18.5 -For the good in Figure 18.5,with the tariff,the people in the country will buy

Figure 18.3 -Refer to Figure 18.3.With free trade,domestic production is

Which of the following trade policies raises prices for domestic consumers?

A possible reason to impose a protectionist policy such as a tariff is to

The terms of trade refers to the

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

An import ban results in

Daily Output of Japan and United States Table 18.2 -Refer to Table 18.2.After trade begins,________ will specialize in the production of stereos and ________ will specialize in the production of tractors.

The Asian Pacific Economic Cooperation (APEC)was modeled after NAFTA.

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

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

What is the GATT?

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

Environmental regulations increase trade and economic well-being.

What are import licenses?

Which of the following statements is FALSE?

Regional agreements help GATT reach agreements faster.

Figure 18.4 -Refer to Figure 18.4.With free trade,how many artichokes are produced domestically in Duckland?

If the production possibilities curve is drawn as a straight line it means that

Figure 18.1 -Refer to Figure 18.1.Duckland has a comparative advantage in the production of

Figure 18.5 -For the good in Figure 18.5,with the tariff,the people in the country will buy

Figure 18.3 -Refer to Figure 18.3.With free trade,domestic production is

Which of the following trade policies raises prices for domestic consumers?

A possible reason to impose a protectionist policy such as a tariff is to

The terms of trade refers to the

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

Daily Output of Japan and United States Table 18.2 -Refer to Table 18.2.After trade begins, will specialize in the production of stereos and will specialize in the production of tractors.