Question 1

Which of the following benefits from a quota or VER?

Accepted Answer

A)  consumers 
B)  domestic producers 
C)  the government 
D)  all of the above 
A)  consumers 
B)  domestic producers 
C)  the government 
D)  all of the above

Question 2

Exporting nations often agree to voluntary export restraints in an attempt to

Accepted Answer

A)  employ more workers in the importing nation. 
B)  avoid more restrictive trade policies. 
C)  increase global welfare. 
D)  decrease inflation. 
A)  employ more workers in the importing nation. 
B)  avoid more restrictive trade policies. 
C)  increase global welfare. 
D)  decrease inflation.

Question 3

Figure 18.2
-Refer to Figure 18.2.The terms of trade for Pizzaland is

Accepted Answer

A)  1 tomato for 2.5 cheese. 
B)  1 tomato for 0.6 cheese. 
C)  1 tomato for 0.4 cheese. 
D)  1 tomato for 0.167 cheese. 
A)  1 tomato for 2.5 cheese. 
B)  1 tomato for 0.6 cheese. 
C)  1 tomato for 0.4 cheese. 
D)  1 tomato for 0.167 cheese.

Question 4

The main rationale for anti-dumping policies is to prevent

Accepted Answer

A)  predatory pricing. 
B)  economies of scale. 
C)  free-trade. 
D)  comparative disadvantage. 
A)  predatory pricing. 
B)  economies of scale. 
C)  free-trade. 
D)  comparative disadvantage.

Question 5

When the United States banned tuna from Mexico because Mexico used nets that killed dolphins,they acted in concordance with WTO rules.

Accepted Answer

A) True 
 B)False

Question 6

Free trade will affect a country's employment in different industries.

Accepted Answer

A) True 
 B)False

Question 7

Figure 18.4
-Refer to Figure 18.4.With a tariff or quota,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 8

The phenomenon that occurs when an infant industry becomes better and more efficient as it produces more of a good is called

Accepted Answer

A)  learning by doing. 
B)  learning to walk. 
C)  comparative advantage. 
D)  crawling then walking. 
A)  learning by doing. 
B)  learning to walk. 
C)  comparative advantage. 
D)  crawling then walking.

Question 9

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

Accepted Answer

A)  40. 
B)  90. 
C)  100. 
D)  150. 
A)  40. 
B)  90. 
C)  100. 
D)  150.

Question 10

Which of the following organizations has over 149 member nations and oversees the General Agreement on Trade and Tariffs?

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 11

Recall the Application about how worldwide trade has affected the U.S. auto industry to answer the following question(s).
-According to this Application,what percentage of parts in the Ford Fiesta came from parts suppliers in the United States and Canada in 2010?

Accepted Answer

A)  90% 
B)  70% 
C)  55% 
D)  35% 
A)  90% 
B)  70% 
C)  55% 
D)  35%

Question 12

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 20x per day.If Nation A produces only y,it can make 15y per day.If Nation B produces only x,it can make 15x per day.If Nation B produces only y,it can make 15y 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 13

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

Accepted Answer

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

Question 14

Daily Output of Scotland and Poland
   
Table 18.1
-Refer to Table 18.1.If Poland produces 50 bagpipes,how many accordions can they produce for the rest of the day?

Accepted Answer

A)  25 
B)  50 
C)  75 
D)  125 
A)  25 
B)  50 
C)  75 
D)  125

Question 15

Figure 18.2
-Refer to Figure 18.2.In autarky,the maximum amount of cheese that Pizzaland can produce is

Accepted Answer

A)  150. 
B)  120. 
C)  90. 
D)  80. 
A)  150. 
B)  120. 
C)  90. 
D)  80.

Question 16

If the opportunity cost of a table is 5 chairs in Nation A and 1 chair in Nation B,it makes sense for Nation A to produce chairs.

Accepted Answer

A) True 
 B)False

Question 17

Import restrictions create an incentive to smuggle.

Accepted Answer

A) True 
 B)False

Question 18

From the perspective of consumers,a quota is preferred to a tariff.

Accepted Answer

A) True 
 B)False

Question 19

As punishment to Europe for refusing to remove their ban on U.S.and Canadian hormone-treated beef,the WTO allowed the United States and Canada

Accepted Answer

A)  to ban only European beef from entering their countries. 
B)  to ban all goods and services imported from Europe. 
C)  to impose retaliatory tariffs on a wide range of European products. 
D)  to impose retaliatory quotas on a wide range of European products. 
A)  to ban only European beef from entering their countries. 
B)  to ban all goods and services imported from Europe. 
C)  to impose retaliatory tariffs on a wide range of European products. 
D)  to impose retaliatory quotas on a wide range of European products.

Question 20

What is the rationale for protecting infant industries?

Accepted Answer

The rationale for protecting infant indu

Which of the following benefits from a quota or VER?

Exporting nations often agree to voluntary export restraints in an attempt to

Figure 18.2 -Refer to Figure 18.2.The terms of trade for Pizzaland is

The main rationale for anti-dumping policies is to prevent

When the United States banned tuna from Mexico because Mexico used nets that killed dolphins,they acted in concordance with WTO rules.

Free trade will affect a country's employment in different industries.

Figure 18.4 -Refer to Figure 18.4.With a tariff or quota,what is the equilibrium quantity of artichokes in Duckland?

The phenomenon that occurs when an infant industry becomes better and more efficient as it produces more of a good is called

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

Which of the following organizations has over 149 member nations and oversees the General Agreement on Trade and Tariffs?

Recall the Application about how worldwide trade has affected the U.S. auto industry to answer the following question(s). -According to this Application,what percentage of parts in the Ford Fiesta came from parts suppliers in the United States and Canada in 2010?

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

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.If Poland produces 50 bagpipes,how many accordions can they produce for the rest of the day?

Figure 18.2 -Refer to Figure 18.2.In autarky,the maximum amount of cheese that Pizzaland can produce is

If the opportunity cost of a table is 5 chairs in Nation A and 1 chair in Nation B,it makes sense for Nation A to produce chairs.

Import restrictions create an incentive to smuggle.

From the perspective of consumers,a quota is preferred to a tariff.

As punishment to Europe for refusing to remove their ban on U.S.and Canadian hormone-treated beef,the WTO allowed the United States and Canada

What is the rationale for protecting infant industries?

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

Which of the following benefits from a quota or VER?

Exporting nations often agree to voluntary export restraints in an attempt to

Figure 18.2 -Refer to Figure 18.2.The terms of trade for Pizzaland is

The main rationale for anti-dumping policies is to prevent

When the United States banned tuna from Mexico because Mexico used nets that killed dolphins,they acted in concordance with WTO rules.

Free trade will affect a country's employment in different industries.

Figure 18.4 -Refer to Figure 18.4.With a tariff or quota,what is the equilibrium quantity of artichokes in Duckland?

The phenomenon that occurs when an infant industry becomes better and more efficient as it produces more of a good is called

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

Which of the following organizations has over 149 member nations and oversees the General Agreement on Trade and Tariffs?

Recall the Application about how worldwide trade has affected the U.S. auto industry to answer the following question(s). -According to this Application,what percentage of parts in the Ford Fiesta came from parts suppliers in the United States and Canada in 2010?

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

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.If Poland produces 50 bagpipes,how many accordions can they produce for the rest of the day?

Figure 18.2 -Refer to Figure 18.2.In autarky,the maximum amount of cheese that Pizzaland can produce is

If the opportunity cost of a table is 5 chairs in Nation A and 1 chair in Nation B,it makes sense for Nation A to produce chairs.

Import restrictions create an incentive to smuggle.

From the perspective of consumers,a quota is preferred to a tariff.

As punishment to Europe for refusing to remove their ban on U.S.and Canadian hormone-treated beef,the WTO allowed the United States and Canada

What is the rationale for protecting infant industries?

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