Question 1

The national defense argument for trade protectionism holds that

Accepted Answer

A)  what is good for business is good for the country. 
B)  what is good for consumers is good for the country. 
C)  consumers' surplus rises by more than producers' surplus falls. 
D)  producers' surplus rises by more than consumers' surplus falls. 
E)  none of the above 
A)  what is good for business is good for the country. 
B)  what is good for consumers is good for the country. 
C)  consumers' surplus rises by more than producers' surplus falls. 
D)  producers' surplus rises by more than consumers' surplus falls. 
E)  none of the above

Question 2

Global technologies,such as electronics,have made up a significant portion of the recent wave of manufacturing offshoring.

Accepted Answer

A) True 
 B)False

Question 3

Explain why the government is often more responsive to producer interests than to consumer interests when it comes to the imposition of tariffs and quotas.

Accepted Answer

Government is generally more responsive

Question 4

-Refer to Exhibit 34-9.In the no specialization-no trade case,suppose country X produces and consumes 100 units of good A and 20 units of good B.Country Y produces and consumes 20 units of good A and 60 units of good B.If the two countries specialize and trade,and the actual amounts traded are 125 units of good A for 25 units of good B,how many more units of good B will country Y consume by specializing and trading?

Accepted Answer

A)  75 
B)  5 
C)  15 
D)  10 
E)  50 
A)  75 
B)  5 
C)  15 
D)  10 
E)  50

Question 5

-Refer to Exhibit 34-6.The opportunity cost of 1 unit of cheese in terms of units of wine is __________ for country A.

Accepted Answer

A)  1/2 
B)  2 
C)  10 
D)  5 
E)  none of the above 
A)  1/2 
B)  2 
C)  10 
D)  5 
E)  none of the above

Question 6

-Refer to Exhibit 34-10.Who has the comparative advantage when it comes to cleaning the house?

Accepted Answer

A)  Danielle 
B)  Jason 
C)  neither Jason nor Danielle 
D)  both Danielle and Jason 
A)  Danielle 
B)  Jason 
C)  neither Jason nor Danielle 
D)  both Danielle and Jason

Question 7

Alexander Hamilton used the infant-industry argument to support trade restrictions.

Accepted Answer

A) True 
 B)False

Question 8

-Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,the world price is PW.At this price,producers' surplus equals the area of

Accepted Answer

A)  PNBDPW. 
B)  DBC. 
C)  PWCBPN. 
D)  PWDE. 
A)  PNBDPW. 
B)  DBC. 
C)  PWCBPN. 
D)  PWDE.

Question 9

-Refer to Exhibit 34-1.The opportunity cost of one unit of Y in country B is

Accepted Answer

A)  0.5 units of X. 
B)  1 unit of X. 
C)  2 units of X. 
D)  20 units of X. 
A)  0.5 units of X. 
B)  1 unit of X. 
C)  2 units of X. 
D)  20 units of X.

Question 10

7/20/2017 11:13 AM
Exhibit 34-11
  
-Refer to Exhibit 34-11.PW is the price that exists in the market before a tariff is imposed and PW + T is the price that exists in the market after a tariff is imposed.The tariff results in a net loss to society equal to area(s)

Accepted Answer

A)  DBE + FCG. 
B)  EBCF. 
C)  DBE + EBCF. 
D)  FCG + EBCF. 
E)  none of the above 
A)  DBE + FCG. 
B)  EBCF. 
C)  DBE + EBCF. 
D)  FCG + EBCF. 
E)  none of the above

Question 11

The difference between the amount a seller receives for a good and the lowest amount for which he would sell the good is called

Accepted Answer

A)  producers' surplus. 
B)  windfall gain. 
C)  consumers' surplus. 
D)  excess profit. 
A)  producers' surplus. 
B)  windfall gain. 
C)  consumers' surplus. 
D)  excess profit.

Question 12

The effects of tariffs and quotas are: a(n)__________ in the prices of imported goods to domestic consumers,and a(n)__________ in imports.

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 13

-Refer to Exhibit 34-12.PW is the price that exists in a free world market.With the imposition of a quota that limits imports to Q4 - Q3,consumers lose more than producers and importers gain.The result of the quota is a (net)loss represented by the area(s)

Accepted Answer

A)  LGK + JHI. 
B)  KGHJ. 
C)  GCH + JHI. 
D)  LGK. 
E)  none of the above 
A)  LGK + JHI. 
B)  KGHJ. 
C)  GCH + JHI. 
D)  LGK. 
E)  none of the above

Question 14

Which of the following statements is false?

Accepted Answer

A)  As a result of a quota,consumers' surplus falls. 
B)  As a result of a tariff,producers' surplus rises. 
C)  As a result of a tariff,consumers' surplus falls. 
D)  As a result of a quota,producers' surplus rises. 
E)  none of the above 
A)  As a result of a quota,consumers' surplus falls. 
B)  As a result of a tariff,producers' surplus rises. 
C)  As a result of a tariff,consumers' surplus falls. 
D)  As a result of a quota,producers' surplus rises. 
E)  none of the above

Question 15

-Refer to Exhibit 34-1.The opportunity cost of one unit of X in country A is

Accepted Answer

A)  1 unit of Y. 
B)  2 units of Y. 
C)  10 units of Y. 
D)  0.50 units of Y. 
A)  1 unit of Y. 
B)  2 units of Y. 
C)  10 units of Y. 
D)  0.50 units of Y.

Question 16

-Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,the world price is PW.At this price,what quantity of this good do U.S.consumers buy from U.S.producers and what quantity do they import from foreign producers?

Accepted Answer

A)  Q1 from U.S.producers and (Q3 - Q1)from foreign producers 
B)  Q2 from U.S.producers and (Q3 - Q1)from foreign producers 
C)  (Q3 - Q1)from U.S.producers and Q1 from foreign producers 
D)  Q3 from U.S.producers and nothing from foreign producers 
A)  Q1 from U.S.producers and (Q3 - Q1)from foreign producers 
B)  Q2 from U.S.producers and (Q3 - Q1)from foreign producers 
C)  (Q3 - Q1)from U.S.producers and Q1 from foreign producers 
D)  Q3 from U.S.producers and nothing from foreign producers

Question 17

A tariff is imposed on strawberries.The tariff will ___________ the price of strawberries in the domestic market,_____________ the quantity of strawberries imported in the domestic market,and ____________ consumers' surplus.

Accepted Answer

A)  raise; lower; lower 
B)  lower; raise; lower 
C)  raise; lower; raise 
D)  lower; lower; raise 
A)  raise; lower; lower 
B)  lower; raise; lower 
C)  raise; lower; raise 
D)  lower; lower; raise

Question 18

The answer is: "A reduction in consumers' surplus." What is the question?

Accepted Answer

A)  What is an effect of a rise in price? 
B)  What is an effect of a tariff? 
C)  What is an effect of a quota? 
D)  a and b 
E)  a,b,and c 
A)  What is an effect of a rise in price? 
B)  What is an effect of a tariff? 
C)  What is an effect of a quota? 
D)  a and b 
E)  a,b,and c

Question 19

-Refer to Exhibit 34-12.PW is the price that exists in a free world market.If the U.S.imposes a quota to reduce imports to Q4 - Q3,price will rise to

Accepted Answer

A)  P1. 
B)  P2. 
C)  P3. 
D)  P4. 
E)  There is not enough information to answer the question. 
A)  P1. 
B)  P2. 
C)  P3. 
D)  P4. 
E)  There is not enough information to answer the question.

Question 20

-Refer to Exhibit 34-5.The opportunity cost of one unit of good A is __________ for country 1 and __________ for country 2.

Accepted Answer

A)  20B; 15B 
B)  10B; 15B 
C)  2B; 1B 
D)  1/2B; 2B 
E)  1/10B; 1B 
A)  20B; 15B 
B)  10B; 15B 
C)  2B; 1B 
D)  1/2B; 2B 
E)  1/10B; 1B

Exam 21: International Finance

The national defense argument for trade protectionism holds that

Global technologies,such as electronics,have made up a significant portion of the recent wave of manufacturing offshoring.

Explain why the government is often more responsive to producer interests than to consumer interests when it comes to the imposition of tariffs and quotas.

-Refer to Exhibit 34-6.The opportunity cost of 1 unit of cheese in terms of units of wine is __________ for country A.

-Refer to Exhibit 34-10.Who has the comparative advantage when it comes to cleaning the house?

Alexander Hamilton used the infant-industry argument to support trade restrictions.

-Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,the world price is PW.At this price,producers' surplus equals the area of

-Refer to Exhibit 34-1.The opportunity cost of one unit of Y in country B is

7/20/2017 11:13 AM Exhibit 34-11 -Refer to Exhibit 34-11.PW is the price that exists in the market before a tariff is imposed and PW + T is the price that exists in the market after a tariff is imposed.The tariff results in a net loss to society equal to area(s)

The difference between the amount a seller receives for a good and the lowest amount for which he would sell the good is called

The effects of tariffs and quotas are: a(n)__________ in the prices of imported goods to domestic consumers,and a(n)__________ in imports.

-Refer to Exhibit 34-12.PW is the price that exists in a free world market.With the imposition of a quota that limits imports to Q4 - Q3,consumers lose more than producers and importers gain.The result of the quota is a (net)loss represented by the area(s)

Which of the following statements is false?

-Refer to Exhibit 34-1.The opportunity cost of one unit of X in country A is

-Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,the world price is PW.At this price,what quantity of this good do U.S.consumers buy from U.S.producers and what quantity do they import from foreign producers?

A tariff is imposed on strawberries.The tariff will ___________ the price of strawberries in the domestic market,_____________ the quantity of strawberries imported in the domestic market,and ____________ consumers' surplus.

The answer is: "A reduction in consumers' surplus." What is the question?

-Refer to Exhibit 34-12.PW is the price that exists in a free world market.If the U.S.imposes a quota to reduce imports to Q4 - Q3,price will rise to

-Refer to Exhibit 34-5.The opportunity cost of one unit of good A is __________ for country 1 and __________ for country 2.

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free,controlled,and Relative

Supply,demand,and Price: Applications

Elasticity

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages,union,and Labor

The Distribution of Income and Poverty

Interest,rent,and Profit

Market Failure: Externalities, public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

The Economic Case for and Against Government: Five Topics Considered

Stocks,bonds,futures,and Options

Stocks,bonds,futures,and Options

Filters

-Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,the world price is P_W.At this price,producers' surplus equals the area of

7/20/2017 11:13 AM Exhibit 34-11 -Refer to Exhibit 34-11.P_W is the price that exists in the market before a tariff is imposed and P_{W + T} is the price that exists in the market after a tariff is imposed.The tariff results in a net loss to society equal to area(s)

The effects of tariffs and quotas are: a(n) in the prices of imported goods to domestic consumers,and a(n) in imports.

-Refer to Exhibit 34-12.P_W is the price that exists in a free world market.With the imposition of a quota that limits imports to Q₄ - Q₃,consumers lose more than producers and importers gain.The result of the quota is a (net)loss represented by the area(s)

-Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,the world price is P_W.At this price,what quantity of this good do U.S.consumers buy from U.S.producers and what quantity do they import from foreign producers?

A tariff is imposed on strawberries.The tariff will _____ the price of strawberries in the domestic market,_ the quantity of strawberries imported in the domestic market,and ______ consumers' surplus.

-Refer to Exhibit 34-12.P_W is the price that exists in a free world market.If the U.S.imposes a quota to reduce imports to Q₄ - Q₃,price will rise to

-Refer to Exhibit 34-5.The opportunity cost of one unit of good A is for country 1 and for country 2.