Question 1

When a rich nation buys a product made in a poor nation,in the poor nation the demand for labor ________ and the wage rate ________.

Accepted Answer

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

Question 2

Which of the following statements about U.S.international trade in 2009 is correct?

Accepted Answer

A)  The value of U.S. exports exceeded the value of U.S. imports. 
B)  The value of U.S. exports was about 33 percent of the value of total U.S. production. 
C)  The United States imported only goods. 
D)  The United States was the world's largest trader. 
A)  The value of U.S. exports exceeded the value of U.S. imports. 
B)  The value of U.S. exports was about 33 percent of the value of total U.S. production. 
C)  The United States imported only goods. 
D)  The United States was the world's largest trader.

Question 3

A difference between a quota and a tariff is that

Accepted Answer

A)  a tariff generates a higher price than does a quota. 
B)  a tariff generates a greater reduction in exports than does a quota. 
C)  a quota increases profits of domestic producers more than does a tariff. 
D)  the government collects revenues from a tariff but does not collect revenues from a quota. 
A)  a tariff generates a higher price than does a quota. 
B)  a tariff generates a greater reduction in exports than does a quota. 
C)  a quota increases profits of domestic producers more than does a tariff. 
D)  the government collects revenues from a tariff but does not collect revenues from a quota.

Question 4

Because wage rates are so low in Africa,why don't Microsoft,Cisco and other major corporations close down their American operations and move to Africa?

Accepted Answer

Wage rates must be weighed against produ

Question 5

When a firms "dumps" some of its products in another country,it

Accepted Answer

A)  creates an environmental hazard in the receiving country. 
B)  sells its products abroad at a price lower than it costs to produce the goods. 
C)  increases the total level of employment in the receiving country. 
D)  is specializing according to comparative advantage. 
A)  creates an environmental hazard in the receiving country. 
B)  sells its products abroad at a price lower than it costs to produce the goods. 
C)  increases the total level of employment in the receiving country. 
D)  is specializing according to comparative advantage.

Question 6

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. The United States imposes a tariff on imported shirts, $4 per shirt.
-In the figure above,the U.S.government's revenue from the tariff is ________.

Accepted Answer

A)  $64 million 
B)  $32 million 
C)  $128 million 
D)  $48 million 
A)  $64 million 
B)  $32 million 
C)  $128 million 
D)  $48 million

Question 7

Explain the effects of a quota.

Accepted Answer

A quota is a quantitative restriction on

Question 8

Tariffs and import quotas both result in

Accepted Answer

A)  lower levels of domestic production. 
B)  the domestic government gaining revenue. 
C)  lower levels of imports. 
D)  higher levels of domestic consumption. 
A)  lower levels of domestic production. 
B)  the domestic government gaining revenue. 
C)  lower levels of imports. 
D)  higher levels of domestic consumption.

Question 9

Who benefits from a tariff on a good?

Accepted Answer

A)  Domestic consumers of the good 
B)  Foreign governments 
C)  Domestic producers of the good 
D)  Foreign producers of the good 
A)  Domestic consumers of the good 
B)  Foreign governments 
C)  Domestic producers of the good 
D)  Foreign producers of the good

Question 10

Which of the following reasons explains why rich countries persistently restrict textile imports from poor countries?

Accepted Answer

A)  The trade restrictions make textile consumers better off. 
B)  The trade restrictions make workers in poor countries better off. 
C)  The trade restrictions benefit an organized visible special interest in rich countries. 
D)  Rich countries have a strong need for the revenue from these trade restrictions. 
A)  The trade restrictions make textile consumers better off. 
B)  The trade restrictions make workers in poor countries better off. 
C)  The trade restrictions benefit an organized visible special interest in rich countries. 
D)  Rich countries have a strong need for the revenue from these trade restrictions.

Question 11

The Smoot-Hawley Act was enacted in

Accepted Answer

A)  1980. 
B)  2000. 
C)  1930. 
D)  1950. 
A)  1980. 
B)  2000. 
C)  1930. 
D)  1950.

Question 12

Which of the following is a reason why only limited attempts are made to compensate those who lose from free international trade?

Accepted Answer

A)  Free trade advocates consistently lobby to eliminate compensation. 
B)  It would be difficult to determine the extent to which someone's sufferings were because of free trade and not due to reasons under their own control. 
C)  No one loses in the from free trade in the long run. 
D)  None of the above answers are correct. 
A)  Free trade advocates consistently lobby to eliminate compensation. 
B)  It would be difficult to determine the extent to which someone's sufferings were because of free trade and not due to reasons under their own control. 
C)  No one loses in the from free trade in the long run. 
D)  None of the above answers are correct.

Question 13

Import quotas

Accepted Answer

A)  encourage freer trade. 
B)  are a tax on an imported good. 
C)  set the number of units of a good that can be imported. 
D)  set the minimum percentage of the value of a good that can consist of imported components. 
A)  encourage freer trade. 
B)  are a tax on an imported good. 
C)  set the number of units of a good that can be imported. 
D)  set the minimum percentage of the value of a good that can consist of imported components.

Question 14

Which of the statements about the gains from international trade is correct?

Accepted Answer

A)  Everyone gains from international trade. 
B)  Some people gain from international trade and some lose, though overall the gains exceed the losses. 
C)  Some people gain from international trade and some lose; overall the gains exceed the losses. 
D)  Everyone loses from international trade. 
A)  Everyone gains from international trade. 
B)  Some people gain from international trade and some lose, though overall the gains exceed the losses. 
C)  Some people gain from international trade and some lose; overall the gains exceed the losses. 
D)  Everyone loses from international trade.

Question 15

A key difference between tariffs and quotas is that

Accepted Answer

A)  consumers are hurt with quotas but not with tariffs. 
B)  consumers are hurt with tariffs but not with quotas. 
C)  the government receives revenue with tariffs, but the importer receives the added revenue with quotas. 
D)  the government receives revenue with quotas, but the importer receives the added revenue with tariffs. 
A)  consumers are hurt with quotas but not with tariffs. 
B)  consumers are hurt with tariffs but not with quotas. 
C)  the government receives revenue with tariffs, but the importer receives the added revenue with quotas. 
D)  the government receives revenue with quotas, but the importer receives the added revenue with tariffs.

Question 16

During the first 6 months of 2008,the United States imported 1,655,740,870 pounds of coffee. Suppose the United States is considering placing trade restrictions on the importation of coffee. If the United States has a goal of raising tax revenue from coffee imports,what policy should they pursue?

Accepted Answer

A)  Tariff on imported coffee 
B)  Subsidy on imported coffee 
C)  Quota on imported coffee 
D)  Voluntary export restraints on coffee 
A)  Tariff on imported coffee 
B)  Subsidy on imported coffee 
C)  Quota on imported coffee 
D)  Voluntary export restraints on coffee

Question 17

in 2013 the U.S.government imposed a tariff on Chinese solar panels.The group that lobbied for this tariff was

Accepted Answer

A)  U.S. consumers of solar panels. 
B)  only U.S. producers of solar panels. 
C)  only Chinese producers of solar panels. 
D)  Both U.S. and Chinese producers of solar panels. 
A)  U.S. consumers of solar panels. 
B)  only U.S. producers of solar panels. 
C)  only Chinese producers of solar panels. 
D)  Both U.S. and Chinese producers of solar panels.

Question 18

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. The United States imposes a tariff on imported shirts, $4 per shirt.
-In the figure above,with the tariff Americans buy ________ million shirts per year.

Accepted Answer

A)  40 
B)  48 
C)  32 
D)  16 
A)  40 
B)  48 
C)  32 
D)  16

Question 19

Some observers opposing free trade argue that when we buy shoes from Brazil or shirts from Taiwan,U.S.workers lose their jobs.The fact of the matter is that

Accepted Answer

A)  no U.S. worker has actually lost a job because of free trade. 
B)  most jobs lost because of free trade pay less than the poverty level. 
C)  free trade creates jobs in export industries. 
D)  the jobs lost are concentrated in restricted geographic areas. 
A)  no U.S. worker has actually lost a job because of free trade. 
B)  most jobs lost because of free trade pay less than the poverty level. 
C)  free trade creates jobs in export industries. 
D)  the jobs lost are concentrated in restricted geographic areas.

Question 20

Dumping occurs when a foreign firm ________.

Accepted Answer

A)  pollutes international waters 
B)  disposes of waste material internationally 
C)  sells inferior output to foreigners 
D)  sells its exports at a lower price than its cost of production 
A)  pollutes international waters 
B)  disposes of waste material internationally 
C)  sells inferior output to foreigners 
D)  sells its exports at a lower price than its cost of production

When a rich nation buys a product made in a poor nation,in the poor nation the demand for labor and the wage rate .

Which of the following statements about U.S.international trade in 2009 is correct?

A difference between a quota and a tariff is that

Because wage rates are so low in Africa,why don't Microsoft,Cisco and other major corporations close down their American operations and move to Africa?

When a firms "dumps" some of its products in another country,it

Explain the effects of a quota.

Tariffs and import quotas both result in

Who benefits from a tariff on a good?

Which of the following reasons explains why rich countries persistently restrict textile imports from poor countries?

The Smoot-Hawley Act was enacted in

Which of the following is a reason why only limited attempts are made to compensate those who lose from free international trade?

Import quotas

Which of the statements about the gains from international trade is correct?

A key difference between tariffs and quotas is that

During the first 6 months of 2008,the United States imported 1,655,740,870 pounds of coffee. Suppose the United States is considering placing trade restrictions on the importation of coffee. If the United States has a goal of raising tax revenue from coffee imports,what policy should they pursue?

in 2013 the U.S.government imposed a tariff on Chinese solar panels.The group that lobbied for this tariff was

Some observers opposing free trade argue that when we buy shoes from Brazil or shirts from Taiwan,U.S.workers lose their jobs.The fact of the matter is that

Dumping occurs when a foreign firm ________.

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 a rich nation buys a product made in a poor nation,in the poor nation the demand for labor ________ and the wage rate ________.

Which of the following statements about U.S.international trade in 2009 is correct?

A difference between a quota and a tariff is that

Because wage rates are so low in Africa,why don't Microsoft,Cisco and other major corporations close down their American operations and move to Africa?

When a firms "dumps" some of its products in another country,it

Explain the effects of a quota.

Tariffs and import quotas both result in

Who benefits from a tariff on a good?

Which of the following reasons explains why rich countries persistently restrict textile imports from poor countries?

The Smoot-Hawley Act was enacted in

Which of the following is a reason why only limited attempts are made to compensate those who lose from free international trade?

Import quotas

Which of the statements about the gains from international trade is correct?

A key difference between tariffs and quotas is that

During the first 6 months of 2008,the United States imported 1,655,740,870 pounds of coffee. Suppose the United States is considering placing trade restrictions on the importation of coffee. If the United States has a goal of raising tax revenue from coffee imports,what policy should they pursue?

in 2013 the U.S.government imposed a tariff on Chinese solar panels.The group that lobbied for this tariff was

Some observers opposing free trade argue that when we buy shoes from Brazil or shirts from Taiwan,U.S.workers lose their jobs.The fact of the matter is that

Dumping occurs when a foreign firm ________.

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

When a rich nation buys a product made in a poor nation,in the poor nation the demand for labor and the wage rate .