Question 1

One reason why consumers are unlikely to be too upset about tariffs is because

Accepted Answer

A)  most consumers benefit from protection. 
B)  tariffs are an inexpensive way to create jobs. 
C)  consumer losses are not real losses. 
D)  the costs are so spread out that no one pays a big share of the total. 
A)  most consumers benefit from protection. 
B)  tariffs are an inexpensive way to create jobs. 
C)  consumer losses are not real losses. 
D)  the costs are so spread out that no one pays a big share of the total.

Question 2

Which of the following is NOT a True statement about economic sanctions?

Accepted Answer

A)  Economic sanctions are aimed at broad policy objectives, such as the end of apartheid. 
B)  Economic sanctions can seriously harm the economy of a country on which they are imposed. 
C)  Economic sanctions are usually effective in achieving policy goals. 
D)  Economic sanctions may not be sufficient to achieve policy goals without military force or other measures. 
A)  Economic sanctions are aimed at broad policy objectives, such as the end of apartheid. 
B)  Economic sanctions can seriously harm the economy of a country on which they are imposed. 
C)  Economic sanctions are usually effective in achieving policy goals. 
D)  Economic sanctions may not be sufficient to achieve policy goals without military force or other measures.

Question 3

Protection in the form of tariffs or quotas is a very inefficient tool for job creation and preservation.

Accepted Answer

A) True 
 B)False

Question 4

Describe some of the gains from lowering trade barriers that may be difficult to measure.

Accepted Answer

Cost savings from scale econom

Question 5

The average agricultural tariff in the U.S. is about

Accepted Answer

A)  3 percent. 
B)  5 percent. 
C)  9 percent. 
D)  15 percent. 
A)  3 percent. 
B)  5 percent. 
C)  9 percent. 
D)  15 percent.

Question 6

At the end of World War II,

Accepted Answer

A)  tariffs around the world fell substantially. 
B)  agricultural subsidies were significantly reduced. 
C)  most nations began to apply tariffs uniformly across all industries. 
D)  tariffs increased in low-income countries and fell a small percentage in high-income countries. 
A)  tariffs around the world fell substantially. 
B)  agricultural subsidies were significantly reduced. 
C)  most nations began to apply tariffs uniformly across all industries. 
D)  tariffs increased in low-income countries and fell a small percentage in high-income countries.

Question 7

Under Special 301, what is the U.S. government required to do?

Accepted Answer

Monitor intellectual

Question 8

Tariffs are higher in agriculture than any other sector in most countries.

Accepted Answer

A) True 
 B)False

Question 9

Some economists argue that free trade is beneficial regardless of the actions of a country's trading partners, including trading partners that heavily protect their home markets.

Accepted Answer

A) True 
 B)False

Question 10

Economic sanctions

Accepted Answer

A)  usually work to create policy change in the targeted country. 
B)  are more likely to work if the international community supports them. 
C)  are more likely to work if military force is not used. 
D)  never work to create policy change in the targeted country. 
A)  usually work to create policy change in the targeted country. 
B)  are more likely to work if the international community supports them. 
C)  are more likely to work if military force is not used. 
D)  never work to create policy change in the targeted country.

Question 11

Critique the infant industry or the labor argument for protection.

Accepted Answer

Critique of the labor argument largely r

Question 12

During the 1930s, countries closed markets. The effect of these policies was that

Accepted Answer

A)  export industries were better off in most countries. 
B)  import-competing industries did not gain. 
C)  the reduction in trade worsened the Great Depression. 
D)  consumers were better off. 
A)  export industries were better off in most countries. 
B)  import-competing industries did not gain. 
C)  the reduction in trade worsened the Great Depression. 
D)  consumers were better off.

Question 13

In the United States, which agency determines whether domestic firms have been harmed by subsidies and dumping or by a sudden surge in imports and whether protection is warranted?

Accepted Answer

The United

Question 14

Dumping occurs when a firm

Accepted Answer

A)  sells too much of a good in a foreign country. 
B)  sells in a foreign country at prices that are below fair value. 
C)  sells in its home market at prices that are below the average price charged by its competitors. 
D)  sells in a foreign market at prices that are below the prices charged by firms based in the foreign market. 
A)  sells too much of a good in a foreign country. 
B)  sells in a foreign country at prices that are below fair value. 
C)  sells in its home market at prices that are below the average price charged by its competitors. 
D)  sells in a foreign market at prices that are below the prices charged by firms based in the foreign market.

Question 15

Carefully explain why agricultural subsidies are viewed as harmful.

Accepted Answer

Direct subsidies are viewed as

Question 16

Why do both developed and less-developed countries protect clothing and textiles heavily?

Accepted Answer

For developed countries, comparative adv

Question 17

If a nation protects an industry because it believes that there are positive externalities in the production process, it is asserting that the free market will

Accepted Answer

A)  produce less than is optimal from society's point of view. 
B)  produce more than is optimal from society's point of view. 
C)  produce the correct amount but charge too high a price. 
D)  produce the correct amount but charge too low a price. 
A)  produce less than is optimal from society's point of view. 
B)  produce more than is optimal from society's point of view. 
C)  produce the correct amount but charge too high a price. 
D)  produce the correct amount but charge too low a price.

Question 18

Economists believe that there are many nonmonetary gains from further trade opening. Which of the following is NOT one of those potential gains?

Accepted Answer

A)  Economies of scale from increased production decreases costs. 
B)  Intensified competition lowers prices. 
C)  Governments will be less reliant on tariff revenue. 
D)  Diversification of production lowers risks. 
A)  Economies of scale from increased production decreases costs. 
B)  Intensified competition lowers prices. 
C)  Governments will be less reliant on tariff revenue. 
D)  Diversification of production lowers risks.

One reason why consumers are unlikely to be too upset about tariffs is because

Which of the following is NOT a True statement about economic sanctions?

Protection in the form of tariffs or quotas is a very inefficient tool for job creation and preservation.

Describe some of the gains from lowering trade barriers that may be difficult to measure.

The average agricultural tariff in the U.S. is about

At the end of World War II,

Under Special 301, what is the U.S. government required to do?

Tariffs are higher in agriculture than any other sector in most countries.

Some economists argue that free trade is beneficial regardless of the actions of a country's trading partners, including trading partners that heavily protect their home markets.

Economic sanctions

Critique the infant industry or the labor argument for protection.

During the 1930s, countries closed markets. The effect of these policies was that

In the United States, which agency determines whether domestic firms have been harmed by subsidies and dumping or by a sudden surge in imports and whether protection is warranted?

Dumping occurs when a firm

Carefully explain why agricultural subsidies are viewed as harmful.

Why do both developed and less-developed countries protect clothing and textiles heavily?

If a nation protects an industry because it believes that there are positive externalities in the production process, it is asserting that the free market will

Economists believe that there are many nonmonetary gains from further trade opening. Which of the following is NOT one of those potential gains?

The United States in a Global Economy

International Economic Institutions Since World War II

Comparative Advantage and the Gains From Trade

Comparative Advantage and Factor Endowments

Beyond Comparative Advantage

The Theory of Tariffs and Quotas

International Trade and Labor and Environmental Standards

Trade and the Balance of Payments

Exchange Rates and Exchange Rate Systems

An Introduction to Open Economy Macroeconomics

International Financial Crises

The United States in the World Economy

The European Union: Many Markets Into One

Trade and Policy Reform in Latin America

Export-Oriented Growth in East Asia

China and India in the World Economy

Filters

Exam 7: Commercial Policy

One reason why consumers are unlikely to be too upset about tariffs is because

Which of the following is NOT a True statement about economic sanctions?

Protection in the form of tariffs or quotas is a very inefficient tool for job creation and preservation.

Describe some of the gains from lowering trade barriers that may be difficult to measure.

The average agricultural tariff in the U.S. is about

At the end of World War II,

Under Special 301, what is the U.S. government required to do?

Tariffs are higher in agriculture than any other sector in most countries.

Some economists argue that free trade is beneficial regardless of the actions of a country's trading partners, including trading partners that heavily protect their home markets.

Economic sanctions

Critique the infant industry or the labor argument for protection.

During the 1930s, countries closed markets. The effect of these policies was that

In the United States, which agency determines whether domestic firms have been harmed by subsidies and dumping or by a sudden surge in imports and whether protection is warranted?

Dumping occurs when a firm

Carefully explain why agricultural subsidies are viewed as harmful.

Why do both developed and less-developed countries protect clothing and textiles heavily?

If a nation protects an industry because it believes that there are positive externalities in the production process, it is asserting that the free market will

Economists believe that there are many nonmonetary gains from further trade opening. Which of the following is NOT one of those potential gains?

The United States in a Global Economy

International Economic Institutions Since World War II

Comparative Advantage and the Gains From Trade

Comparative Advantage and Factor Endowments

Beyond Comparative Advantage

The Theory of Tariffs and Quotas

International Trade and Labor and Environmental Standards

Trade and the Balance of Payments

Exchange Rates and Exchange Rate Systems

An Introduction to Open Economy Macroeconomics

International Financial Crises

The United States in the World Economy

The European Union: Many Markets Into One

Trade and Policy Reform in Latin America

Export-Oriented Growth in East Asia

China and India in the World Economy

Filters