Question 1

Why does division of labor make international trade profitable?

Accepted Answer

A) Every country can produce all the products it needs. 
B) The countries that are most efficient at producing particular products produce them. 
C) Countries can learn to create products that they are inefficient at producing. 
D) Workers always benefit when their labor is divided. 
A) Every country can produce all the products it needs. 
B) The countries that are most efficient at producing particular products produce them. 
C) Countries can learn to create products that they are inefficient at producing. 
D) Workers always benefit when their labor is divided.

Question 2

Which of the following is most likely a developed country?

Accepted Answer

A) A country with no quotas on manufactured goods 
B) A country that imposes a tax on technology exports 
C) A country that has trade restrictions on agricultural imports 
D) A country that has high tariffs on manufactured goods 
A) A country with no quotas on manufactured goods 
B) A country that imposes a tax on technology exports 
C) A country that has trade restrictions on agricultural imports 
D) A country that has high tariffs on manufactured goods

Question 3

Which of the following is an example of absolute advantage?

Accepted Answer

A) Since Turkey controls the Bosporus Strait,the countries on the Black Sea are completely dependent on it for access to the Mediterranean. 
B) Portugal is better at producing wine than producing cloth. 
C) The United States makes software more efficiently than any other country. 
D) Labor can more easily move between industries than can capital. 
A) Since Turkey controls the Bosporus Strait,the countries on the Black Sea are completely dependent on it for access to the Mediterranean. 
B) Portugal is better at producing wine than producing cloth. 
C) The United States makes software more efficiently than any other country. 
D) Labor can more easily move between industries than can capital.

Question 4

In the figure,at what level will domestic firms produce under the tariff?

Accepted Answer

A) Q?? 
B) QS1U1B1dS1U1B0t 
C) A 
D) pS1U1B1wS1U1B0 
A) Q?? 
B) QS1U1B1dS1U1B0t 
C) A 
D) pS1U1B1wS1U1B0

Question 5

Mercosur is a regional trade agreement on what continent?

Accepted Answer

A) Africa 
B) Asia 
C) Europe 
D) South America 
A) Africa 
B) Asia 
C) Europe 
D) South America

Question 6

Which of the following is explained well by the specific-factor approach (Ricardo-Viner model)?

Accepted Answer

A) Steel workers and steel factory owners both lobby for tariffs on imported steel. 
B) Steel workers and agricultural workers join together to oppose tariffs. 
C) Owners of factories in a country with abundant fertile land promote free trade. 
D) Workers in an automobile factory promote free trade while the factory owners lobby for tariffs on imported cars. 
A) Steel workers and steel factory owners both lobby for tariffs on imported steel. 
B) Steel workers and agricultural workers join together to oppose tariffs. 
C) Owners of factories in a country with abundant fertile land promote free trade. 
D) Workers in an automobile factory promote free trade while the factory owners lobby for tariffs on imported cars.

Question 7

Which of the following is most likely to help countries overcome trade problems with each other?

Accepted Answer

A) When a large number of countries participate in trade negotiations so they can gain broader consensus 
B) When countries have limited interactions over time,and therefore little chance for disputes 
C) When countries are able to restrict the information that other countries have about their products 
D) When countries can negotiate concessions in different industries to achieve an agreement 
A) When a large number of countries participate in trade negotiations so they can gain broader consensus 
B) When countries have limited interactions over time,and therefore little chance for disputes 
C) When countries are able to restrict the information that other countries have about their products 
D) When countries can negotiate concessions in different industries to achieve an agreement

Question 8

A major effect of trade barriers such as tariffs,quotas,and nontariff barriers is that:

Accepted Answer

A) aggregate social welfare is increased by keeping wealth within the country. 
B) consumers lose from higher prices,while import-competing producers benefit. 
C) export-oriented producers are supported,while there is no effect on consumers. 
D) states are no longer allowed to be members of the World Trade Organization. 
A) aggregate social welfare is increased by keeping wealth within the country. 
B) consumers lose from higher prices,while import-competing producers benefit. 
C) export-oriented producers are supported,while there is no effect on consumers. 
D) states are no longer allowed to be members of the World Trade Organization.

Question 9

Which of these periods was most characterized by trade liberalization?

Accepted Answer

A) The early 1800s 
B) The late 1800s until World War I 
C) During World War I 
D) Between World War I and World War II 
A) The early 1800s 
B) The late 1800s until World War I 
C) During World War I 
D) Between World War I and World War II

Question 10

Imagine that you are the economic adviser to the executive of a state.What factors would you tell him or her to consider before announcing a new policy on trade? Which groups in society would you expect to be in favor of protectionism? Which groups would you expect to be in favor of free trade?

Accepted Answer

Answers will vary. Trade barriers usuall

Question 11

What is the Stolper-Samuelson theorem?

Accepted Answer

A) The theory that protection hurts the scarce sector 
B) The theory that protection hurts the scarce factor of production 
C) The theory that protection benefits the abundant factor of production 
D) The theory that protection benefits the scarce factor of production 
A) The theory that protection hurts the scarce sector 
B) The theory that protection hurts the scarce factor of production 
C) The theory that protection benefits the abundant factor of production 
D) The theory that protection benefits the scarce factor of production

Question 12

According to Ricardo's theory on trade,in the example described by the table,Portugal should:

Accepted Answer

A) produce wine exclusively. 
B) produce cloth exclusively. 
C) produce everything itself. 
D) produce half the wine and half the cloth needed by both parties. 
A) produce wine exclusively. 
B) produce cloth exclusively. 
C) produce everything itself. 
D) produce half the wine and half the cloth needed by both parties.

Question 13

What factors make it more likely that countries will have trade agreements? How do strategic interactions make it more or less likely that a country will sign these agreements?

Accepted Answer

Answers will vary. When governments make

Question 14

What was the common interest that the future members of the European Union shared in the wake of World War II that led them to start the process of creating a single market?

Accepted Answer

A) A desire to overtake the United States economically 
B) The need to decolonize cooperatively 
C) A desire to rebuild after the devastation of the war 
D) An interest in appeasing the Soviet Union to prevent a third World War 
A) A desire to overtake the United States economically 
B) The need to decolonize cooperatively 
C) A desire to rebuild after the devastation of the war 
D) An interest in appeasing the Soviet Union to prevent a third World War

Question 15

In the figure,at what level will domestic firms produce under liberalization?

Accepted Answer

A) Q?? 
B) QS1U1B1dS1U1B0 
C) A 
D) P 
A) Q?? 
B) QS1U1B1dS1U1B0 
C) A 
D) P

Question 16

How do the Stolper-Samuelson theorem and Ricardo-Viner model differ in their predictions of who will support protection and who will support free trade?

Accepted Answer

Answers will vary.Students should define

Question 17

Explain how trade bargaining problems can resemble a Prisoner's Dilemma.

Accepted Answer

Answers will vary.In trade bargaining,bo

Question 18

Which of the following trade policy results would be most expected given the logic of collective action?

Accepted Answer

A) Factory workers successfully lobbying for lower tariffs on imported automobiles 
B) Consumers successfully lobbying for higher tariffs on imported corn 
C) Consumers successfully lobbying for lower tariffs on imported televisions 
D) Automobile manufacturers successfully lobbying for higher tariffs on imported automobiles 
A) Factory workers successfully lobbying for lower tariffs on imported automobiles 
B) Consumers successfully lobbying for higher tariffs on imported corn 
C) Consumers successfully lobbying for lower tariffs on imported televisions 
D) Automobile manufacturers successfully lobbying for higher tariffs on imported automobiles

Question 19

Which of the following is a tariff?

Accepted Answer

A) A toll on land and sea traffic entering a country 
B) A ban on imports from another country 
C) A limit to the amount of a foreign good that can be sold in a country 
D) A tax on imports levied at the border,paid by the importer 
A) A toll on land and sea traffic entering a country 
B) A ban on imports from another country 
C) A limit to the amount of a foreign good that can be sold in a country 
D) A tax on imports levied at the border,paid by the importer

Question 20

Which of the following explains why the 2016 American presidential election was particularly anti-trade?

Accepted Answer

A) In the year prior to the election,Congress had delegated more trade power to the president,increasing the salience of the issue in the election. 
B) After the 2008 economic crisis,U.S.exports had decreased so dramatically that hardly any jobs depended on trade anymore. 
C) The recent surge in imports from China had led to more polarization about trade in some parts of the United States than previously. 
D) Increased competition from the European Union created a desire in both parties to limit trade. 
A) In the year prior to the election,Congress had delegated more trade power to the president,increasing the salience of the issue in the election. 
B) After the 2008 economic crisis,U.S.exports had decreased so dramatically that hardly any jobs depended on trade anymore. 
C) The recent surge in imports from China had led to more polarization about trade in some parts of the United States than previously. 
D) Increased competition from the European Union created a desire in both parties to limit trade.

Why does division of labor make international trade profitable?

Which of the following is most likely a developed country?

Which of the following is an example of absolute advantage?

In the figure,at what level will domestic firms produce under the tariff?

Mercosur is a regional trade agreement on what continent?

Which of the following is explained well by the specific-factor approach (Ricardo-Viner model)?

Which of the following is most likely to help countries overcome trade problems with each other?

A major effect of trade barriers such as tariffs,quotas,and nontariff barriers is that:

Which of these periods was most characterized by trade liberalization?

Imagine that you are the economic adviser to the executive of a state.What factors would you tell him or her to consider before announcing a new policy on trade? Which groups in society would you expect to be in favor of protectionism? Which groups would you expect to be in favor of free trade?

What is the Stolper-Samuelson theorem?

According to Ricardo's theory on trade,in the example described by the table,Portugal should:

What factors make it more likely that countries will have trade agreements? How do strategic interactions make it more or less likely that a country will sign these agreements?

What was the common interest that the future members of the European Union shared in the wake of World War II that led them to start the process of creating a single market?

In the figure,at what level will domestic firms produce under liberalization?

How do the Stolper-Samuelson theorem and Ricardo-Viner model differ in their predictions of who will support protection and who will support free trade?

Explain how trade bargaining problems can resemble a Prisoner's Dilemma.

Which of the following trade policy results would be most expected given the logic of collective action?

Which of the following is a tariff?

Which of the following explains why the 2016 American presidential election was particularly anti-trade?

What Shaped Our World

Understanding Interests, interactions, and Institutions

Why Are There Wars

Domestic Politics and War

International Institutions and War

Violence by Nonstate Actors: Civil War and Terrorism

International Financial Relations

International Monetary Relations

Development: Causes of the Wealth and Poverty of Nations

International Law and Norms

Human Rights

The Global Environment

The Future of International Politics

Introduction

Foundations, War, and Peace

International Political Economy, Transnational Politics, and Looking Ahead

Filters

Exam 7: International Trade

Why does division of labor make international trade profitable?

Which of the following is most likely a developed country?

Which of the following is an example of absolute advantage?

In the figure,at what level will domestic firms produce under the tariff?

Mercosur is a regional trade agreement on what continent?

Which of the following is explained well by the specific-factor approach (Ricardo-Viner model)?

Which of the following is most likely to help countries overcome trade problems with each other?

A major effect of trade barriers such as tariffs,quotas,and nontariff barriers is that:

Which of these periods was most characterized by trade liberalization?

Imagine that you are the economic adviser to the executive of a state.What factors would you tell him or her to consider before announcing a new policy on trade? Which groups in society would you expect to be in favor of protectionism? Which groups would you expect to be in favor of free trade?

What is the Stolper-Samuelson theorem?

According to Ricardo's theory on trade,in the example described by the table,Portugal should:

What factors make it more likely that countries will have trade agreements? How do strategic interactions make it more or less likely that a country will sign these agreements?

What was the common interest that the future members of the European Union shared in the wake of World War II that led them to start the process of creating a single market?

In the figure,at what level will domestic firms produce under liberalization?

How do the Stolper-Samuelson theorem and Ricardo-Viner model differ in their predictions of who will support protection and who will support free trade?

Explain how trade bargaining problems can resemble a Prisoner's Dilemma.

Which of the following trade policy results would be most expected given the logic of collective action?

Which of the following is a tariff?

Which of the following explains why the 2016 American presidential election was particularly anti-trade?

What Shaped Our World

Understanding Interests, interactions, and Institutions

Why Are There Wars

Domestic Politics and War

International Institutions and War

Violence by Nonstate Actors: Civil War and Terrorism

International Financial Relations

International Monetary Relations

Development: Causes of the Wealth and Poverty of Nations

International Law and Norms

Human Rights

The Global Environment

The Future of International Politics

Introduction

Foundations, War, and Peace

International Political Economy, Transnational Politics, and Looking Ahead

Filters