Exam 21: International Trade Restrictions

Which of the following probably best explains why trade restrictions are imposed even if the costs to consumers are greater than the benefits to protected industries?

When dealing with strategic trade policy,one practical problem for government is the likelihood of retaliation by the foreign government.

When barriers to trade are imposed,we should expect some groups to be harmed at the expense of other groups.

The world output is higher if the countries follow restrictive trade policies rather than free trade.

Protection is rarely withdrawn from infant industries because such firms are necessary to ensure creation of domestic jobs.

Typically,restrictions to "save domestic jobs" simply redistribute jobs by creating:

Employers and workers in the protected industry know that the consequences of protection are principally:

In the United States,a "buy American" act was passed in 1933 to create larger markets for domestic goods.

The most successful free trade agreements achieve all of the following goals,except:

It is often argued that if foreign goods are kept out of the domestic economy:

The figure given below depicts the negatively sloped demand and positively sloped supply curves of wheat in a country. Figure 21.2 - In Figure 21.2,if the world price of wheat is $35 and a $15 tariff is imposed:

Tariff accounts for 32% of the total government revenue in the U.K.and only 1.2% in India.

Developing countries often justify imposition of tariffs because:

The figure given below depicts the negatively sloped demand and positively sloped supply curves of wheat in a country. Figure 21.2 - In Figure 21.2,if the world price per bushel of wheat is $25,and a tariff of $10 is imposed,what is the domestic production?

The infant industry argument is that:

In order to protect key industries,some countries impose taxes on their exports instead of imports,mainly because it is easier to collect taxes from the export industry.

As a result of the government procurement policy in the U.S.:

The figure below shows the demand (D) and supply (S) curves of a good produced domestically in an economy as well as traded in the international market. Figure 21.1 In the figure, P₁: Price of the good in the international market. P₂: Price of the good in the domestic market after the imposition of tariff by the government. P₃: No-trade price of the good in the domestic market. -According to Figure 21.1,the tariff revenue earned by the domestic government is equal to the:

After the U.S.government had approved the feeding of hormones to U.S.beef cattle,several western European nations restricted the import of beef from the U.S.Which of the following tools of commercial policy had been put to use in this situation?

The figure below shows the demand (D) and supply (S) curves of a good produced domestically in an economy as well as traded in the international market. Figure 21.1 In the figure, P₁: Price of the good in the international market. P₂: Price of the good in the domestic market after the imposition of tariff by the government. P₃: No-trade price of the good in the domestic market. -According to Figure 21.1,the domestic equilibrium quantity of the good is: