Question 1

Trade adjustment assistance provides subsidies to companies that have lost business to foreign firms.

Accepted Answer

A) True 
 B)False

Question 2

Suppose the United States eliminates high tariffs on German bicycles.As a result,we would expect:

Accepted Answer

A)  the price of German bicycles to increase in the United States. 
B)  employment to decrease in the German bicycle industry. 
C)  employment to decrease in the U.S.bicycle industry. 
D)  profits to rise in the U.S.bicycle industry. 
A)  the price of German bicycles to increase in the United States. 
B)  employment to decrease in the German bicycle industry. 
C)  employment to decrease in the U.S.bicycle industry. 
D)  profits to rise in the U.S.bicycle industry.

Question 3

Dumping of goods abroad:

Accepted Answer

A)  constitutes a general case for permanent tariffs. 
B)  may be part of a firm's price discrimination strategy. 
C)  may be part of a nation's strategy to rectify its trade deficit. 
D)  drives up prices of the dumped goods. 
A)  constitutes a general case for permanent tariffs. 
B)  may be part of a firm's price discrimination strategy. 
C)  may be part of a nation's strategy to rectify its trade deficit. 
D)  drives up prices of the dumped goods.

Question 4

Answer the question on the basis of the following information.Assume that by devoting all its resources to the production of X,nation Alpha can produce 20 units of X.By devoting all its resources to Y,Alpha can produce 30Y.Comparable figures for nation Beta are 60X and 40Y.
Refer to the given information.Alpha would prefer terms of trade at,or close to,1X = 2/3Y.

Accepted Answer

A) True 
 B)False

Question 5

Trade adjustment assistance:

Accepted Answer

A)  provides financial assistance to all unemployed workers in the United States. 
B)  guarantees jobs for all workers displaced by imports or plant relocations abroad. 
C)  provides assistance to about 20 percent of unemployed U.S.workers each year. 
D)  provides cash assistance for workers displaced by imports or plant relocations abroad. 
A)  provides financial assistance to all unemployed workers in the United States. 
B)  guarantees jobs for all workers displaced by imports or plant relocations abroad. 
C)  provides assistance to about 20 percent of unemployed U.S.workers each year. 
D)  provides cash assistance for workers displaced by imports or plant relocations abroad.

Question 6

A high tariff on imported good X might reduce domestic employment in industry Y if:

Accepted Answer

A)  X is an input used domestically in producing Y. 
B)  X and Y are substitute goods. 
C)  X is an inferior good. 
D)  Y is an inferior good. 
A)  X is an input used domestically in producing Y. 
B)  X and Y are substitute goods. 
C)  X is an inferior good. 
D)  Y is an inferior good.

Question 7

Answer the question on the basis of the following data for the hypothetical nations of Alpha and Beta.Qs is domestic quantity supplied and Qd is domestic quantity demanded. $\begin{array}{c}
\underline{\text { Domestic Market For Steel, Alpha }}\
\begin{array}{c}
\underline{Q_{s}}\  
60\
40\
30\
20\
10 
\end{array}
\begin{array}{c}
\underline{P}\
\$ 5 \
4 \
3 \
2 \
1 
\end{array}
\begin{array}{l}
\underline{Q_{d}} \
10 \
20 \
30 \
40 \
50 
\end{array}
\end{array}$

$\begin{array}{c}
\underline{\text { Domestic Market For Steel, Beta  }}\
\begin{array}{c}
\underline{Q_{s}}\  
80 \
70 \
60 \
50 \
40
\end{array}
\begin{array}{c}
\underline{P}\
\$ 5 \
4 \
3 \
2 \
1 
\end{array}
\begin{array}{l}
\underline{Q_{d}} \
20 \
30 \
40 \
50 \
60 
\end{array}
\end{array}$

Refer to the given data.Assuming that Alpha and Beta are the only two nations in the world,the equilibrium world price of steel must be between:

Accepted Answer

A)  $5 and $4. 
B)  $4 and $3. 
C)  $3 and $2. 
D)  $2 and $1. 
A)  $5 and $4. 
B)  $4 and $3. 
C)  $3 and $2. 
D)  $2 and $1.

Question 8

The law of increasing opportunity costs limits international specialization.

Accepted Answer

A) True 
 B)False

Question 9

Answer the question on the basis of the following domestic supply and demand schedules for a product.Suppose that the world price of the product is $1. $\begin{array} { c c c } 
\begin{array} { c } 
\text { Quantity } \
\text { Supplied } \
\text { (Domestic) }
\end{array} & \text { Price } & \begin{array} { c } 
\text { Quantity } \
\text { Demanded } \
\text { (Domestic) }
\end{array} \
 12 & \$ 5 & 2 \
10 & 4 & 4 \
7 & 3 & 7 \
4 & 2 & 11 \
1 & 1 & 16
\end{array}$ Refer to the given data.If this nation were entirely closed to international trade,equilibrium price and quantity would be:

Accepted Answer

A)  $5 and 2 units. 
B)  $1 and 1 unit. 
C)  $4 and 4 units. 
D)  $3 and 7 units. 
A)  $5 and 2 units. 
B)  $1 and 1 unit. 
C)  $4 and 4 units. 
D)  $3 and 7 units.

Question 10

The terms of trade reflect the:

Accepted Answer

A)  rate at which gold exchanges internationally for any domestic currency. 
B)  ratio at which nations will exchange two goods. 
C)  fact that the gains from trade will be equally divided. 
D)  cost conditions embodied in a single country's production possibilities curve. 
A)  rate at which gold exchanges internationally for any domestic currency. 
B)  ratio at which nations will exchange two goods. 
C)  fact that the gains from trade will be equally divided. 
D)  cost conditions embodied in a single country's production possibilities curve.

Question 11

Answer the question on the basis of the following domestic supply and demand schedules for a product.Suppose that the world price of the product is $1. $\begin{array} { c c c } 
\begin{array} { c } 
\text { Quantity } \
\text { Supplied } \
\text { (Domestic) }
\end{array} & \text { Price } & \begin{array} { c } 
\text { Quantity } \
\text { Demanded } \
\text { (Domestic) }
\end{array} \
12 & \$ 5 & 2 \
10 & 4 & 4 \
7 & 3 & 7 \
4 & 2 & 11 \
1 & 1 & 16
\end{array}$ Refer to the given data.With a $1-per-unit tariff,prices (revenue per unit)received by domestic and foreign producers respectively will be:

Accepted Answer

A)  $2 and $1. 
B)  $1 and $2. 
C)  $2 and $2. 
D)  $3 and $2. 
A)  $2 and $1. 
B)  $1 and $2. 
C)  $2 and $2. 
D)  $3 and $2.

Question 12

A nation's export supply curve for a specific product:

Accepted Answer

A)  is upsloping. 
B)  shows the amount of the product it will export at prices below its domestic price. 
C)  lies below its import demand curve for the product. 
D)  depends on domestic supply of the product,but not on domestic demand. 
A)  is upsloping. 
B)  shows the amount of the product it will export at prices below its domestic price. 
C)  lies below its import demand curve for the product. 
D)  depends on domestic supply of the product,but not on domestic demand.

Trade adjustment assistance provides subsidies to companies that have lost business to foreign firms.

Suppose the United States eliminates high tariffs on German bicycles.As a result,we would expect:

Dumping of goods abroad:

Trade adjustment assistance:

A high tariff on imported good X might reduce domestic employment in industry Y if:

The law of increasing opportunity costs limits international specialization.

The terms of trade reflect the:

A nation's export supply curve for a specific product:

Income Inequality Poverty and Discrimination

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

The Balance of Payments, Exchange Rates, and Trade Deficits

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

The United States and the Global Economy

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Exam 39: International Trade

Trade adjustment assistance provides subsidies to companies that have lost business to foreign firms.

Suppose the United States eliminates high tariffs on German bicycles.As a result,we would expect:

Dumping of goods abroad:

Trade adjustment assistance:

A high tariff on imported good X might reduce domestic employment in industry Y if:

The law of increasing opportunity costs limits international specialization.

The terms of trade reflect the:

A nation's export supply curve for a specific product:

Income Inequality Poverty and Discrimination

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

The Balance of Payments, Exchange Rates, and Trade Deficits

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

The United States and the Global Economy

Filters