Question 1

Which of the following statements is true?

Accepted Answer

A)  All individuals in both countries are made better off as a result of international trade. 
B)  Within each country, some individuals are made better off as a result of international trade, but one of the countries will be worse off overall. 
C)  Although some individuals are made better off as a result of international trade, both countries may be made worse off overall. 
D)  Each country as a whole is made better off as a result of international trade, but individuals within each country may be made worse off. 
A)  All individuals in both countries are made better off as a result of international trade. 
B)  Within each country, some individuals are made better off as a result of international trade, but one of the countries will be worse off overall. 
C)  Although some individuals are made better off as a result of international trade, both countries may be made worse off overall. 
D)  Each country as a whole is made better off as a result of international trade, but individuals within each country may be made worse off.

Question 2

Figure 19-1
   Figure 19-1 shows the U.S. demand and supply for leather footwear.
-Refer to Figure 19-1.Under autarky,the consumer surplus is

Accepted Answer

A)  $195. 
B)  $260. 
C)  $300. 
D)  $555. 
A)  $195. 
B)  $260. 
C)  $300. 
D)  $555.

Question 3

Although the United States is the second largest exporting country,international trade is less important to the United States than it is to most other countries.

Accepted Answer

A) True 
 B)False

Question 4

Tastes for products such as beer differ.As a result

Accepted Answer

A)  we see countries specializing completely in the production of beer. 
B)  consumers of beer have difficulty deciding what type of imported beer to buy. 
C)  the quality of imported beer is less than it could be. 
D)  different countries may each have a comparative advantage in producing different types of beer. 
A)  we see countries specializing completely in the production of beer. 
B)  consumers of beer have difficulty deciding what type of imported beer to buy. 
C)  the quality of imported beer is less than it could be. 
D)  different countries may each have a comparative advantage in producing different types of beer.

Question 5

Figure 19-10
  
-Refer to Figure 19-10.Currency speculators believe that the value of the euro will increase relative to the dollar.Assuming all else remains constant,how would this be represented?

Accepted Answer

A)  Supply would decrease, demand would decrease and the economy moves from B to C to D. 
B)  Supply would increase, demand would decrease and the economy moves from C to B to A. 
C)  Supply would decrease, demand would increase and the economy moves from A to D to C. 
D)  Supply would increase, demand would increase and the economy moves from D to A to B. 
A)  Supply would decrease, demand would decrease and the economy moves from B to C to D. 
B)  Supply would increase, demand would decrease and the economy moves from C to B to A. 
C)  Supply would decrease, demand would increase and the economy moves from A to D to C. 
D)  Supply would increase, demand would increase and the economy moves from D to A to B.

Question 6

In a September 2017 ruling, the U.S. International Trade Commission (ITC) found that imports of solar panels harmed U.S. manufacturers, opening the door for the Trump administration to impose tariffs on foreign solar panels and modules. The initial complaint to the ITC was filed in early 2017 by bankrupt solar panel manufacturer Suniva, who argued that a rapid increase in imports of inexpensive foreign product put U.S. manufacturers at risk. The decision was opposed by many in the solar panel industry, arguing that tariffs will hurt the industry as a whole. While Suniva commissioned a report that showed devastating job losses without industry protection, an independent analysis by Bloomberg New Energy Finance found a ruling for Suniva would, at most, only create 6,400 jobs and "downstream job losses would almost certainly exceed any manufacturing gains."
Source: Tom DiChristopher, " US trade agency rules imports harmed solar panel makers, setting up Trump tariff decision," cnbc.com, September 22, 2017.
-Refer to the Article Summary.All else equal,if the Trump administration decides to enact protectionist measures,such as a tariff,against foreign solar panels,the price of solar panels in the United States will ________ and the quantity of solar panels demanded in the United States will ________.

Accepted Answer

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

Question 7

Jobs lost to foreign trade are generally easy to identify,but jobs created by foreign trade are generally less easy to identify.

Accepted Answer

A) True 
 B)False

Question 8

What is a tariff?

Accepted Answer

A tariff is a tax im

Question 9

The ratio at which a country can trade its exports for imports from other countries is called

Accepted Answer

A)  a trade barrier. 
B)  the terms of trade. 
C)  autarky. 
D)  a free trade agreement. 
A)  a trade barrier. 
B)  the terms of trade. 
C)  autarky. 
D)  a free trade agreement.

Question 10

A tariff is a tax imposed by a government on

Accepted Answer

A)  exports. 
B)  services. 
C)  imports. 
D)  luxury items. 
A)  exports. 
B)  services. 
C)  imports. 
D)  luxury items.

Question 11

Table 19-12
Output per hour Production and Production
of work Consumption without Trade with Trade
 $\begin{array}{|c|c|c|c|c|c|c|}
\hline & \text { Swords } & \text { Belts } & \text { Swords } & \text { Belts } & \text { Swords } & \text { Belts } \
\hline \text { Estonia } & 5 & 3 & 100 & 40 & 200 & 0 \
\hline \text { Morocco } & 2 & 2 & 60 & 60 & 0 & 120 \
\hline
\end{array}$ Estonia and Morocco can produce both swords and belts. Each country has a total of 40 available labor hours for the production of swords and belts. Table 19-12 shows the output per hour of work, the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 19-12.If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded,how many belts will Estonia consume?

Accepted Answer

A)  50 
B)  70 
C)  90 
D)  120 
A)  50 
B)  70 
C)  90 
D)  120

Question 12

If Estonia has an absolute advantage in the production of two goods compared to Norway,Estonia can not benefit from trade with Norway.

Accepted Answer

A) True 
 B)False

Question 13

A Federal Reserve publication proclaimed that "Trade is a win-win situation for all countries that participate." This statement is

Accepted Answer

A)  false since it ignores the workers who lose their jobs as result of international trade. 
B)  false since not all countries participate in international trade. 
C)  true because it refers to countries; individuals may be losers as a result of international trade. 
D)  true because all consumers and workers benefit from international trade. 
A)  false since it ignores the workers who lose their jobs as result of international trade. 
B)  false since not all countries participate in international trade. 
C)  true because it refers to countries; individuals may be losers as a result of international trade. 
D)  true because all consumers and workers benefit from international trade.

Question 14

Figure 19-5
   Suppose the U.S. government imposes a $0.75 per pound tariff on coffee imports. Figure 19-5 shows the impact of this tariff.
-Refer to Figure 19-5.With the tariff in place,the United States

Accepted Answer

A)  imports 30 million pounds of coffee. 
B)  imports 12 million pounds of coffee. 
C)  imports 24 million pounds of coffee. 
D)  exports 36 million pounds of coffee. 
A)  imports 30 million pounds of coffee. 
B)  imports 12 million pounds of coffee. 
C)  imports 24 million pounds of coffee. 
D)  exports 36 million pounds of coffee.

Question 15

Beginning in ________,the government of China adopted market-based reforms of the economy and began exporting significant quantities of goods to the United States and other countries.

Accepted Answer

A)  1949 
B)  the 1970s 
C)  the 1990s 
D)  2001 
A)  1949 
B)  the 1970s 
C)  the 1990s 
D)  2001

Question 16

Figure 19-4
   Figure 19-4 shows the U.S. demand and supply for leather footwear.
-Refer to Figure 19-4.Suppose the government allows imports of leather footwear into the United States.What will be the quantity of imports?

Accepted Answer

A)  Q₀ 
B)  Q₁ 
C)  Q₂ 
D)  Q₂ - Q₀ 
A)  Q₀ 
B)  Q₁ 
C)  Q₂ 
D)  Q₂ - Q₀

Question 17

Figure 19-5
   Suppose the U.S. government imposes a $0.75 per pound tariff on coffee imports. Figure 19-5 shows the impact of this tariff.
-Refer to Figure 19-5.With the tariff in place,the United States produces

Accepted Answer

A)  12 million pounds of coffee. 
B)  15 million pounds of coffee. 
C)  24 million pounds of coffee. 
D)  36 million pounds of coffee. 
A)  12 million pounds of coffee. 
B)  15 million pounds of coffee. 
C)  24 million pounds of coffee. 
D)  36 million pounds of coffee.

Question 18

The ability of a firm or country to produce a good or service at a lower opportunity cost than other producers is called comparative advantage.

Accepted Answer

A) True 
 B)False

Question 19

Many economists support trade agreements,maintaining that the agreements improve economic efficiency because they result in goods being produced

Accepted Answer

A)  at the highest profit margin. 
B)  with maximum deadweight loss. 
C)  with zero producer surplus. 
D)  at the lowest opportunity cost. 
A)  at the highest profit margin. 
B)  with maximum deadweight loss. 
C)  with zero producer surplus. 
D)  at the lowest opportunity cost.

Question 20

Today,the United States charges an average tariff rate

Accepted Answer

A)  that is more than its average tariff rate in 1930. 
B)  which is greater than any other high-income country. 
C)  of less than 1.5 percent. 
D)  that exceeds 50 percent. 
A)  that is more than its average tariff rate in 1930. 
B)  which is greater than any other high-income country. 
C)  of less than 1.5 percent. 
D)  that exceeds 50 percent.

Which of the following statements is true?

Figure 19-1 Figure 19-1 shows the U.S. demand and supply for leather footwear. -Refer to Figure 19-1.Under autarky,the consumer surplus is

Although the United States is the second largest exporting country,international trade is less important to the United States than it is to most other countries.

Tastes for products such as beer differ.As a result

Figure 19-10 -Refer to Figure 19-10.Currency speculators believe that the value of the euro will increase relative to the dollar.Assuming all else remains constant,how would this be represented?

Jobs lost to foreign trade are generally easy to identify,but jobs created by foreign trade are generally less easy to identify.

What is a tariff?

The ratio at which a country can trade its exports for imports from other countries is called

A tariff is a tax imposed by a government on

If Estonia has an absolute advantage in the production of two goods compared to Norway,Estonia can not benefit from trade with Norway.

A Federal Reserve publication proclaimed that "Trade is a win-win situation for all countries that participate." This statement is

Figure 19-5 Suppose the U.S. government imposes a $0.75 per pound tariff on coffee imports. Figure 19-5 shows the impact of this tariff. -Refer to Figure 19-5.With the tariff in place,the United States

Beginning in ________,the government of China adopted market-based reforms of the economy and began exporting significant quantities of goods to the United States and other countries.

Figure 19-4 Figure 19-4 shows the U.S. demand and supply for leather footwear. -Refer to Figure 19-4.Suppose the government allows imports of leather footwear into the United States.What will be the quantity of imports?

Figure 19-5 Suppose the U.S. government imposes a $0.75 per pound tariff on coffee imports. Figure 19-5 shows the impact of this tariff. -Refer to Figure 19-5.With the tariff in place,the United States produces

The ability of a firm or country to produce a good or service at a lower opportunity cost than other producers is called comparative advantage.

Many economists support trade agreements,maintaining that the agreements improve economic efficiency because they result in goods being produced

Today,the United States charges an average tariff rate

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, The Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,Production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, The Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Filters

Exam 19: Comparative Advantage, International Trade, and Exchange Rates

Which of the following statements is true?

Figure 19-1 Figure 19-1 shows the U.S. demand and supply for leather footwear. -Refer to Figure 19-1.Under autarky,the consumer surplus is

Although the United States is the second largest exporting country,international trade is less important to the United States than it is to most other countries.

Tastes for products such as beer differ.As a result

Figure 19-10 -Refer to Figure 19-10.Currency speculators believe that the value of the euro will increase relative to the dollar.Assuming all else remains constant,how would this be represented?

Jobs lost to foreign trade are generally easy to identify,but jobs created by foreign trade are generally less easy to identify.

What is a tariff?

The ratio at which a country can trade its exports for imports from other countries is called

A tariff is a tax imposed by a government on

If Estonia has an absolute advantage in the production of two goods compared to Norway,Estonia can not benefit from trade with Norway.

A Federal Reserve publication proclaimed that "Trade is a win-win situation for all countries that participate." This statement is

Figure 19-5 Suppose the U.S. government imposes a $0.75 per pound tariff on coffee imports. Figure 19-5 shows the impact of this tariff. -Refer to Figure 19-5.With the tariff in place,the United States

Beginning in ________,the government of China adopted market-based reforms of the economy and began exporting significant quantities of goods to the United States and other countries.

Figure 19-4 Figure 19-4 shows the U.S. demand and supply for leather footwear. -Refer to Figure 19-4.Suppose the government allows imports of leather footwear into the United States.What will be the quantity of imports?

Figure 19-5 Suppose the U.S. government imposes a $0.75 per pound tariff on coffee imports. Figure 19-5 shows the impact of this tariff. -Refer to Figure 19-5.With the tariff in place,the United States produces

The ability of a firm or country to produce a good or service at a lower opportunity cost than other producers is called comparative advantage.

Many economists support trade agreements,maintaining that the agreements improve economic efficiency because they result in goods being produced

Today,the United States charges an average tariff rate

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, The Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,Production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, The Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Filters