Question 1

During the Great Depression in the 1930s,the average tariff level in the United States peaked at about

Accepted Answer

A)  zero. 
B)  6 percent. 
C)  20 percent. 
D)  100 percent. 
A)  zero. 
B)  6 percent. 
C)  20 percent. 
D)  100 percent.

Question 2

Less developed countries,compared to industrialized ones,are more likely to have higher tariff rates.

Accepted Answer

A) True 
 B)False

Question 3

In industrial countries,there is more reliance on ________,as opposed to ________ for government revenue.

Accepted Answer

A)  tariffs; tax collection 
B)  quotas; tariffs 
C)  tax collection; tariffs 
D)  tariffs; quotas 
A)  tariffs; tax collection 
B)  quotas; tariffs 
C)  tax collection; tariffs 
D)  tariffs; quotas

Question 4

The argument that protection ________.

Accepted Answer

A)  penalizes poor environmental standards is true 
B)  allows us to compete with cheap foreign wages is true 
C)  is necessary for infant industries is true 
D)  saves jobs is flawed 
A)  penalizes poor environmental standards is true 
B)  allows us to compete with cheap foreign wages is true 
C)  is necessary for infant industries is true 
D)  saves jobs is flawed

Question 5

Suppose the country of Atlantica imposes a tariff on foreign-produced cars.As a result of the tariff,

Accepted Answer

A)  tariff revenue collected by the government in the Atlantica increases. 
B)  there is an increase in the number of imported cars. 
C)  the gains from trade rise. 
D)  there are more efficient trade agreements between Atlantica and its trade partners. 
A)  tariff revenue collected by the government in the Atlantica increases. 
B)  there is an increase in the number of imported cars. 
C)  the gains from trade rise. 
D)  there are more efficient trade agreements between Atlantica and its trade partners.

Question 6

6 Numeric and Graphing Questions
 $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Price } \
\text { (dollars per } \
\text { pound) }
\end{array} & \begin{array} { c } 
\text { Quantity supplied } \
\text { (thousands of } \
\text { pounds per year) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { demanded } \
\text { (thousands of } \
\text { pounds per year) }
\end{array} \
\hline 21 & 120 & 60 \
\hline 18 & 100 & 100 \
\hline 15 & 80 & 140 \
\hline 12 & 60 & 180 \
\hline 9 & 40 & 220 \
\hline
\end{array}$$
-The United States imports cheese from a variety of countries.The table above gives the domestic supply of,and demand for,cheese in the United States.The world price of cheese is $12 per pound,and trade is unrestricted.
a) How many pounds of cheese are consumed in the United States?
b) How many pounds of cheese are produced in the United States?
c) How many pounds of cheese are imported into the United States?
If a $3 per pound tariff is imposed,
d) How many pounds of cheese are consumed in the United States?
e) How many pounds of cheese are produced in the United States?
f) How many pounds of cheese are imported into the United States?
g) How much will the U.S.government collect in tariff revenue?
h) Who benefits from the tariff?
Who loses?

Accepted Answer

a)180,000 pounds of cheese are consumed.

Question 7

Import quotas

Accepted Answer

A)  are the same as tariffs. 
B)  set the maximum number of units of a good that can be imported. 
C)  are not used by the United States. 
D)  set the minimum percentage of the value of a product that must consist of imported components. 
A)  are the same as tariffs. 
B)  set the maximum number of units of a good that can be imported. 
C)  are not used by the United States. 
D)  set the minimum percentage of the value of a product that must consist of imported components.

Question 8

A tariff is

Accepted Answer

A)  a licensing regulation that limits imports. 
B)  a tax on an exported good. 
C)  a tax on an imported good. 
D)  an agreement to restrict the volume of exports. 
A)  a licensing regulation that limits imports. 
B)  a tax on an exported good. 
C)  a tax on an imported good. 
D)  an agreement to restrict the volume of exports.

Question 9

In 2006,the European Union (EU) threatened to ban imports of long-grain rice because traces of genetically modified rice were found mixed in to commercial supplies. Instead of a ban,suppose the EU placed a tariff on the import of long-grain rice. Which of the following would be an outcome of this tariff?

Accepted Answer

A)  The EU would gain tariff revenue. 
B)  The social loss would decrease. 
C)  European rice producers would decrease production. 
D)  The price of long-grain rice in the EU would be higher with a tariff than if rice imports were completely banned. 
A)  The EU would gain tariff revenue. 
B)  The social loss would decrease. 
C)  European rice producers would decrease production. 
D)  The price of long-grain rice in the EU would be higher with a tariff than if rice imports were completely banned.

Question 10

What is dumping?

Accepted Answer

Dumping is the situation in wh

Question 11

A U.S.tariff on textiles would ________ U.S.clothing prices and ________ jobs in the U.S.textile industry.

Accepted Answer

A)  reduce; decrease 
B)  reduce; increase 
C)  raise; decrease 
D)  raise; increase 
A)  reduce; decrease 
B)  reduce; increase 
C)  raise; decrease 
D)  raise; increase

Question 12

If the United States imposes a tariff on imported cars,the

Accepted Answer

A)  U.S. demand curve shifts rightward. 
B)  U.S. demand curve shifts leftward. 
C)  U.S. supply curve shifts rightward. 
D)  price in the United States rises but neither the U.S. demand curve nor the U.S. supply curve shift. 
A)  U.S. demand curve shifts rightward. 
B)  U.S. demand curve shifts leftward. 
C)  U.S. supply curve shifts rightward. 
D)  price in the United States rises but neither the U.S. demand curve nor the U.S. supply curve shift.

Question 13

If a country imposes a tariff on an imported good,the tariff ________ the price in the importing country and ________ the quantity of imports.

Accepted Answer

A)  raises; decreases 
B)  raises; increases 
C)  raises; does not change 
D)  lowers; does not change 
A)  raises; decreases 
B)  raises; increases 
C)  raises; does not change 
D)  lowers; does not change

Question 14

A tariff is

Accepted Answer

A)  a government imposed limit on the amount of a good that can be exported from a nation. 
B)  a government imposed barrier that sets a fixed limit on the amount of a good that can be imported into a nation. 
C)  a tax on a good imported into a nation. 
D)  an agreement between governments to limit exports from a nation. 
A)  a government imposed limit on the amount of a good that can be exported from a nation. 
B)  a government imposed barrier that sets a fixed limit on the amount of a good that can be imported into a nation. 
C)  a tax on a good imported into a nation. 
D)  an agreement between governments to limit exports from a nation.

Question 15

A difference between a quota and a tariff is that with a quota the

Accepted Answer

A)  person who has the right to import the good captures an extra gain. 
B)  exporting government collects an extra gain in the form of revenue. 
C)  importing government collects an extra gain in the form of revenue. 
D)  domestic consumers are not harmed. 
A)  person who has the right to import the good captures an extra gain. 
B)  exporting government collects an extra gain in the form of revenue. 
C)  importing government collects an extra gain in the form of revenue. 
D)  domestic consumers are not harmed.

Question 16

The reason that average labor costs are higher in the United States than in Haiti is that

Accepted Answer

A)  workers are more productive in the United States. 
B)  U.S. workers have a comparative advantage. 
C)  Haitian workers have a comparative advantage. 
D)  Haitian workers do not have union representation. 
A)  workers are more productive in the United States. 
B)  U.S. workers have a comparative advantage. 
C)  Haitian workers have a comparative advantage. 
D)  Haitian workers do not have union representation.

Question 17

The infant industry argument is based on the idea of

Accepted Answer

A)  dynamic comparative advantage. 
B)  absolute productivity advantage. 
C)  global monopoly. 
D)  countervailing duties. 
A)  dynamic comparative advantage. 
B)  absolute productivity advantage. 
C)  global monopoly. 
D)  countervailing duties.

Question 18

In 2013 the U.S.government removed its tariff on imported ethanol.Removing the tariff benefited ________ of ethanol,each of whom gained a ________.

Accepted Answer

A)  U.S. producers; little 
B)  U.S. producers; lot 
C)  U.S. consumers; little 
D)  U.S. consumers; lot 
A)  U.S. producers; little 
B)  U.S. producers; lot 
C)  U.S. consumers; little 
D)  U.S. consumers; lot

Question 19

Which of the following is a valid reason for protecting an industry?

Accepted Answer

A)  The industry is unable to compete with low-wage foreign competitors. 
B)  Protection penalizes lax environmental standards. 
C)  Protection keeps richer nations from exploiting the workers of poorer countries. 
D)  None of the above reasons is a valid reason for protection. 
A)  The industry is unable to compete with low-wage foreign competitors. 
B)  Protection penalizes lax environmental standards. 
C)  Protection keeps richer nations from exploiting the workers of poorer countries. 
D)  None of the above reasons is a valid reason for protection.

Question 20

Which of the following statements is true?

Accepted Answer

A)  Dumping is illegal under the rules of the WTO. 
B)  Dumping occurs when a foreign firm sells its exports at a higher price than its cost of production. 
C)  Both statements are true. 
D)  Neither of the statements is true. 
A)  Dumping is illegal under the rules of the WTO. 
B)  Dumping occurs when a foreign firm sells its exports at a higher price than its cost of production. 
C)  Both statements are true. 
D)  Neither of the statements is true.

During the Great Depression in the 1930s,the average tariff level in the United States peaked at about

Less developed countries,compared to industrialized ones,are more likely to have higher tariff rates.

In industrial countries,there is more reliance on ,as opposed to for government revenue.

The argument that protection ________.

Suppose the country of Atlantica imposes a tariff on foreign-produced cars.As a result of the tariff,

Import quotas

A tariff is

What is dumping?

A U.S.tariff on textiles would U.S.clothing prices and jobs in the U.S.textile industry.

If the United States imposes a tariff on imported cars,the

If a country imposes a tariff on an imported good,the tariff the price in the importing country and the quantity of imports.

A tariff is

A difference between a quota and a tariff is that with a quota the

The reason that average labor costs are higher in the United States than in Haiti is that

The infant industry argument is based on the idea of

In 2013 the U.S.government removed its tariff on imported ethanol.Removing the tariff benefited of ethanol,each of whom gained a .

Which of the following is a valid reason for protecting an industry?

Which of the following statements is true?

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

Exam 15: International Trade Policy

During the Great Depression in the 1930s,the average tariff level in the United States peaked at about

Less developed countries,compared to industrialized ones,are more likely to have higher tariff rates.

In industrial countries,there is more reliance on ________,as opposed to ________ for government revenue.

The argument that protection ________.

Suppose the country of Atlantica imposes a tariff on foreign-produced cars.As a result of the tariff,

Import quotas

A tariff is

What is dumping?

A U.S.tariff on textiles would ________ U.S.clothing prices and ________ jobs in the U.S.textile industry.

If the United States imposes a tariff on imported cars,the

If a country imposes a tariff on an imported good,the tariff ________ the price in the importing country and ________ the quantity of imports.

A tariff is

A difference between a quota and a tariff is that with a quota the

The reason that average labor costs are higher in the United States than in Haiti is that

The infant industry argument is based on the idea of

In 2013 the U.S.government removed its tariff on imported ethanol.Removing the tariff benefited ________ of ethanol,each of whom gained a ________.

Which of the following is a valid reason for protecting an industry?

Which of the following statements is true?

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

In industrial countries,there is more reliance on ,as opposed to for government revenue.

A U.S.tariff on textiles would U.S.clothing prices and jobs in the U.S.textile industry.

If a country imposes a tariff on an imported good,the tariff the price in the importing country and the quantity of imports.

In 2013 the U.S.government removed its tariff on imported ethanol.Removing the tariff benefited of ethanol,each of whom gained a .