A) may be imposed either to raise revenue (revenue tariffs) or to shield domestic producers from foreign competition (protective tariffs). B) are also called import quotas. C) are excise taxes on goods exported abroad. D) are per-unit subsidies designed to promote exports. A) may be imposed either to raise revenue (revenue tariffs) or to shield domestic producers from foreign competition (protective tariffs). B) are also called import quotas. C) are excise taxes on goods exported abroad. D) are per-unit subsidies designed to promote exports.

The accompanying tables give production possibilities data for Gamma and Sigma. All data are in tons. Gamma's production possibilities $\begin{array}{c|c|c|c|c|c} & \mathrm{A} & \mathrm{B} & \mathrm{C} & \mathrm{D} & \mathrm{E} \\ \hline \text { Tea } & 120 & 90 & 60 & 30 & 0 \\ \hline \text { Pots } & 0 & 30 & 60 & 90 & 120 \\ \hline \end{array}$ Sigma's production possibilities $\begin{array}{c|c|c|c|c|c} & \mathrm{A} & \mathrm{B} & \mathrm{C} & \mathrm{D} & \mathrm{E} \\ \hline \text { Tea } & 40 & 30 & 20 & 10 & 0 \\ \hline \text { Pots } & 0 & 30 & 60 & 90 & 120 \\ \hline \end{array}$ On the basis of this information,

A) Gamma should export both tea and pots to Sigma. B) Sigma should export tea to Gamma, and Gamma should export pots to Sigma. C) Gamma should export tea to Sigma, and Sigma should export pots to Gamma. D) Gamma should export tea to Sigma, but it will not be profitable for the two nations to exchange pots. A) Gamma should export both tea and pots to Sigma. B) Sigma should export tea to Gamma, and Gamma should export pots to Sigma. C) Gamma should export tea to Sigma, and Sigma should export pots to Gamma. D) Gamma should export tea to Sigma, but it will not be profitable for the two nations to exchange pots.

The accompanying table gives domestic supply and demand schedules for a product. Suppose that the world price of the product is $1. $\begin{array}{|c|c|c|} \hline\text { Ouantity }&&\text { Ouantity }\\ (\text { Supplied }&&\text { Demanded }\\ \hline \text { (Domestic) } & \text { Price } & \text { (Domestic) } \\ \hline 12 & \$ 5 & 2 \\ \hline 10 & 4 & 4 \\ \hline 7 & 3 & 7 \\ \hline 4 & 2 & 11 \\ \hline 1 & 1 & 16 \\ \hline \end{array}$ The total amount of revenue collected from a $1-per-unit tariff on this product will be

A) $22. B) $8. C) $7. D) $14. A) $22. B) $8. C) $7. D) $14.

Exam 26: International Trade

Assume that by devoting all its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all its resources to Y, Alpha can produce 60Y. Comparable figures for nation Beta are 60X and 40Y. Alpha would prefer terms of trade at, or close to, 1X = 1½Y.

(True/False)

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Question 161

Adam Smith recognized the benefits from trade based on , and David Ricardo recognized the benefits from trade based on .

(Multiple Choice)

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Question 162

The Smoot-Hawley Tariff Act of 1930 is notorious for which of the following reasons?

(Multiple Choice)

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Question 163

During the Great Depression, most nations lowered tariffs and abolished import quotas to encourage the flow of trade.

(True/False)

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Question 164

"Offshoring" refers to

(Multiple Choice)

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Question 165

Assume that by devoting all of its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all of its resources to Y, Alpha can produce 60Y. Comparable figures for nation Beta are 60X and 40Y. We can conclude that

(Multiple Choice)

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Question 166

"The nation needs to prevent foreign nations from selling their excess goods in our nation at a price below cost so we can save American firms." This quotation would be most closely associated with which protectionist argument?

(Multiple Choice)

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Question 167

Tariffs

(Multiple Choice)

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Question 168

Export supply curves are ; import demand curves are .

(Multiple Choice)

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Question 169

Whenever a foreign producer is selling a product like steel at a lower price than domestic producers, then dumping is being practiced and must be corrected.

(True/False)

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Question 170

If a nation exports a product, then the price of that product in the nation

(Multiple Choice)

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Question 171

The accompanying tables give production possibilities data for Gamma and Sigma. All data are in tons. Gamma's production possibilities Tea 120 90 60 30 0 Pots 0 30 60 90 120 Sigma's production possibilities Tea 40 30 20 10 0 Pots 0 30 60 90 120 On the basis of this information,

(Multiple Choice)

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Question 172

"Offshoring" of certain production activities refers to

(Multiple Choice)

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Question 173

(Last Word) Frederic Bastiat's satirical argument against protectionism called for protecting domestic producers from

(Multiple Choice)

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Question 174

Which of the U.S. industries below has not seen major shutdowns and layoffs because of free foreign trade?

(Multiple Choice)

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Question 175

Barriers to free trade impair efficiency in the international allocation of resources.

(True/False)

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Question 176

Starting in 2012, an important shift occurred in the U.S. trade in petroleum, which was

(Multiple Choice)

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Question 177

The accompanying table gives domestic supply and demand schedules for a product. Suppose that the world price of the product is $1. Ouantity Ouantity ( Supplied Demanded (Domestic) Price (Domestic) 12 \ 5 2 10 4 4 7 3 7 4 2 11 1 1 16 The total amount of revenue collected from a $1-per-unit tariff on this product will be

(Multiple Choice)

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Question 178

Import quotas on products will reduce the quantity of the imported products and

(Multiple Choice)

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Question 179

The World Trade Organization comprises 28 European nations and is dedicated to abolishing trade barriers and integrating their economies.

(True/False)

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Question 180

Exam 26: International Trade

Assume that by devoting all its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all its resources to Y, Alpha can produce 60Y. Comparable figures for nation Beta are 60X and 40Y. Alpha would prefer terms of trade at, or close to, 1X = 1½Y.

Adam Smith recognized the benefits from trade based on , and David Ricardo recognized the benefits from trade based on .

The Smoot-Hawley Tariff Act of 1930 is notorious for which of the following reasons?

During the Great Depression, most nations lowered tariffs and abolished import quotas to encourage the flow of trade.

"Offshoring" refers to

Assume that by devoting all of its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all of its resources to Y, Alpha can produce 60Y. Comparable figures for nation Beta are 60X and 40Y. We can conclude that

"The nation needs to prevent foreign nations from selling their excess goods in our nation at a price below cost so we can save American firms." This quotation would be most closely associated with which protectionist argument?

Tariffs

Export supply curves are ; import demand curves are .

Whenever a foreign producer is selling a product like steel at a lower price than domestic producers, then dumping is being practiced and must be corrected.

If a nation exports a product, then the price of that product in the nation

The accompanying tables give production possibilities data for Gamma and Sigma. All data are in tons. Gamma's production possibilities Tea 120 90 60 30 0 Pots 0 30 60 90 120 Sigma's production possibilities Tea 40 30 20 10 0 Pots 0 30 60 90 120 On the basis of this information,

"Offshoring" of certain production activities refers to

(Last Word) Frederic Bastiat's satirical argument against protectionism called for protecting domestic producers from

Which of the U.S. industries below has not seen major shutdowns and layoffs because of free foreign trade?

Barriers to free trade impair efficiency in the international allocation of resources.

Starting in 2012, an important shift occurred in the U.S. trade in petroleum, which was

Import quotas on products will reduce the quantity of the imported products and

The World Trade Organization comprises 28 European nations and is dedicated to abolishing trade barriers and integrating their economies.

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