Question 1

When considering rent seeking,which of the following is TRUE?

Accepted Answer

A)  The anti-free trade group generally will lobby more than the pro-free trade group. 
B)  The pro-free trade group generally will lobby more than the anti-free trade group. 
C)  Usually only the anti-free trade group is concerned about what is best for society at large. 
D)  Only the pro-free trade group is concerned about the government's revenue from tariffs. 
A)  The anti-free trade group generally will lobby more than the pro-free trade group. 
B)  The pro-free trade group generally will lobby more than the anti-free trade group. 
C)  Usually only the anti-free trade group is concerned about what is best for society at large. 
D)  Only the pro-free trade group is concerned about the government's revenue from tariffs.

Question 2

Of the groups listed below,which is most likely to lobby for protection?

Accepted Answer

A)  workers in the import industry 
B)  workers in the export industry 
C)  consumers in the import industry 
D)  producers in the export industry 
A)  workers in the import industry 
B)  workers in the export industry 
C)  consumers in the import industry 
D)  producers in the export industry

Question 3

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt.
-In the figure above,with international trade ________ million shirts per year are produced in the United States.

Accepted Answer

A)  48 
B)  32 
C)  16 
D)  20 
A)  48 
B)  32 
C)  16 
D)  20

Question 4

The effect of an import quota is to

Accepted Answer

A)  increase the supply of the good and lower its price. 
B)  increase the supply of the good and increase its price. 
C)  increase the demand for the good and increase its price. 
D)  decrease the supply of the good and raise its price. 
A)  increase the supply of the good and lower its price. 
B)  increase the supply of the good and increase its price. 
C)  increase the demand for the good and increase its price. 
D)  decrease the supply of the good and raise its price.

Question 5

Compared to the situation before international trade,after the United States imports a good production in the United States ________ and consumption in the United States ________.

Accepted Answer

A)  increases; increases 
B)  increases; decreases 
C)  decreases; increases 
D)  decreases; decreases 
A)  increases; increases 
B)  increases; decreases 
C)  decreases; increases 
D)  decreases; decreases

Question 6

The infant-industry argument is the only perfectly valid argument for protection.

Accepted Answer

A) True 
 B)False

Question 7

Rent seeking is one reason why countries choose to

Accepted Answer

A)  restrict trade. 
B)  export and import the same goods. 
C)  work for freer trade. 
D)  follow the theory of comparative advantage. 
A)  restrict trade. 
B)  export and import the same goods. 
C)  work for freer trade. 
D)  follow the theory of comparative advantage.

Question 8

In poorer countries,free trade ________ the demand for labor in these countries and ________ the wages paid in these countries.

Accepted Answer

A)  decreases; lowers 
B)  decreases; raises 
C)  increases; lowers 
D)  increases; raises 
A)  decreases; lowers 
B)  decreases; raises 
C)  increases; lowers 
D)  increases; raises

Question 9

In 2013 the United States reduced the tariff on ethanol.This tariff reduction ________ the U.S.production of ethanol and ________ the total U.S.consumption of ethanol.

Accepted Answer

A)  increased; increased 
B)  increased; decreased 
C)  decreased; increased 
D)  decreased; decreased 
A)  increased; increased 
B)  increased; decreased 
C)  decreased; increased 
D)  decreased; decreased

Question 10

Of the following,in which decade were U.S.tariffs at their lowest level?

Accepted Answer

A)  2000s 
B)  1970s 
C)  1950s 
D)  1930s 
A)  2000s 
B)  1970s 
C)  1950s 
D)  1930s

Question 11

Which of the following are valid reasons advanced by almost all economists?
Protection

Accepted Answer

A)  saves jobs. 
B)  prevents rich countries from exploiting poorer countries. 
C)  is a good way for governments in developed nations to raise revenue. 
D)  Economists would not support any of the above reasons. 
A)  saves jobs. 
B)  prevents rich countries from exploiting poorer countries. 
C)  is a good way for governments in developed nations to raise revenue. 
D)  Economists would not support any of the above reasons.

Question 12

What are the effects of a tariff?

Accepted Answer

A tariff is a tax on goods that are impo

Question 13

Currently Belize,a country in Central America,has a small coffee industry but does not export any coffee. Suppose the government of Belize,in order to protect the new coffee industry to enable it to grow into a mature industry that can compete in world markets,places a tariff on the importation of coffee. What is the argument for placing the tariff on coffee?

Accepted Answer

A)  The infant-industry argument 
B)  The dumping argument 
C)  To protect Belize coffee workers 
D)  To prevent rich countries from exploiting developing countries 
A)  The infant-industry argument 
B)  The dumping argument 
C)  To protect Belize coffee workers 
D)  To prevent rich countries from exploiting developing countries

Question 14

The reason tariffs and quotas are imposed is that

Accepted Answer

A)  their costs are spread among many people and their benefits are concentrated. 
B)  their costs are concentrated and their benefits are spread among many people. 
C)  they create net benefits in the long run. 
D)  they reduce import dependence. 
A)  their costs are spread among many people and their benefits are concentrated. 
B)  their costs are concentrated and their benefits are spread among many people. 
C)  they create net benefits in the long run. 
D)  they reduce import dependence.

Question 15

In 2012 the United States government tightened the import quota on sugar by decreasing the quantity of sugar that could be imported.Which of the following groups would gain from this change?
I. U.S.consumers of sugar
II. U.S.producers of sugar
III. Foreign producers of sugar

Accepted Answer

A)  I only. 
B)  I and II only. 
C)  II only. 
D)  I and III only. 
A)  I only. 
B)  I and II only. 
C)  II only. 
D)  I and III only.

Question 16

A tariff is imposed on a good. The tariff will ________ quantity supplied,________ quantity demanded,and ________ price in the home country.

Accepted Answer

A)  increase; decrease; increase 
B)  increase; remain unchanged; remain unchanged 
C)  increase; increase; increase 
D)  increase; decrease; decrease 
A)  increase; decrease; increase 
B)  increase; remain unchanged; remain unchanged 
C)  increase; increase; increase 
D)  increase; decrease; decrease

Question 17

How does a tariff affect the domestic price of the import,the domestic consumption,the domestic production,and the quantity imported?

Accepted Answer

A tariff raises the price of the good.As

Question 18

Why do nations engage in international trade?

Accepted Answer

Nations engage in international trade be

Question 19

Comparative advantage implies that a country will

Accepted Answer

A)  import those goods in which the country has a comparative advantage. 
B)  export those goods in which the country has a comparative advantage. 
C)  find it difficult to conclude free trade agreements with other nations. 
D)  export goods produced by domestic industries with low wages relative to its trading partners. 
A)  import those goods in which the country has a comparative advantage. 
B)  export those goods in which the country has a comparative advantage. 
C)  find it difficult to conclude free trade agreements with other nations. 
D)  export goods produced by domestic industries with low wages relative to its trading partners.

Question 20

Voluntary export restraints (VERs)

Accepted Answer

A)  do not protect domestic producers. 
B)  raise revenue for the governments involved. 
C)  raise the prices paid by domestic consumers. 
D)  Both answers B and C are correct. 
A)  do not protect domestic producers. 
B)  raise revenue for the governments involved. 
C)  raise the prices paid by domestic consumers. 
D)  Both answers B and C are correct.

When considering rent seeking,which of the following is TRUE?

Of the groups listed below,which is most likely to lobby for protection?

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above,with international trade ________ million shirts per year are produced in the United States.

The effect of an import quota is to

Compared to the situation before international trade,after the United States imports a good production in the United States and consumption in the United States .

The infant-industry argument is the only perfectly valid argument for protection.

Rent seeking is one reason why countries choose to

In poorer countries,free trade the demand for labor in these countries and the wages paid in these countries.

In 2013 the United States reduced the tariff on ethanol.This tariff reduction the U.S.production of ethanol and the total U.S.consumption of ethanol.

Of the following,in which decade were U.S.tariffs at their lowest level?

Which of the following are valid reasons advanced by almost all economists? Protection

What are the effects of a tariff?

The reason tariffs and quotas are imposed is that

In 2012 the United States government tightened the import quota on sugar by decreasing the quantity of sugar that could be imported.Which of the following groups would gain from this change? I. U.S.consumers of sugar II. U.S.producers of sugar III. Foreign producers of sugar

A tariff is imposed on a good. The tariff will quantity supplied, quantity demanded,and price in the home country.

How does a tariff affect the domestic price of the import,the domestic consumption,the domestic production,and the quantity imported?

Why do nations engage in international trade?

Comparative advantage implies that a country will

Voluntary export restraints (VERs)

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

When considering rent seeking,which of the following is TRUE?

Of the groups listed below,which is most likely to lobby for protection?

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above,with international trade ________ million shirts per year are produced in the United States.

The effect of an import quota is to

Compared to the situation before international trade,after the United States imports a good production in the United States ________ and consumption in the United States ________.

The infant-industry argument is the only perfectly valid argument for protection.

Rent seeking is one reason why countries choose to

In poorer countries,free trade ________ the demand for labor in these countries and ________ the wages paid in these countries.

In 2013 the United States reduced the tariff on ethanol.This tariff reduction ________ the U.S.production of ethanol and ________ the total U.S.consumption of ethanol.

Of the following,in which decade were U.S.tariffs at their lowest level?

Which of the following are valid reasons advanced by almost all economists? Protection

What are the effects of a tariff?

The reason tariffs and quotas are imposed is that

In 2012 the United States government tightened the import quota on sugar by decreasing the quantity of sugar that could be imported.Which of the following groups would gain from this change? I. U.S.consumers of sugar II. U.S.producers of sugar III. Foreign producers of sugar

A tariff is imposed on a good. The tariff will ________ quantity supplied,________ quantity demanded,and ________ price in the home country.

How does a tariff affect the domestic price of the import,the domestic consumption,the domestic production,and the quantity imported?

Why do nations engage in international trade?

Comparative advantage implies that a country will

Voluntary export restraints (VERs)

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

Compared to the situation before international trade,after the United States imports a good production in the United States and consumption in the United States .

In poorer countries,free trade the demand for labor in these countries and the wages paid in these countries.

In 2013 the United States reduced the tariff on ethanol.This tariff reduction the U.S.production of ethanol and the total U.S.consumption of ethanol.

A tariff is imposed on a good. The tariff will quantity supplied, quantity demanded,and price in the home country.