Question 1

The answer is: "A tax on imports." What is the question?

Accepted Answer

A)  What is comparative advantage? 
B)  What is a quota? 
C)  What is a tariff? 
D)  What reduces consumers' surplus? 
E)  c and d 
A)  What is comparative advantage? 
B)  What is a quota? 
C)  What is a tariff? 
D)  What reduces consumers' surplus? 
E)  c and d

Question 2

A tariff is a

Accepted Answer

A)  tax imposed on domestic producers of export goods. 
B)  legal limit on the amount of a good that can be imported. 
C)  tax imposed on imported goods. 
D)  legal limit on the amount of a good that can be produced by foreign owners of a firm located in a host country. 
A)  tax imposed on domestic producers of export goods. 
B)  legal limit on the amount of a good that can be imported. 
C)  tax imposed on imported goods. 
D)  legal limit on the amount of a good that can be produced by foreign owners of a firm located in a host country.

Question 3

-Refer to Exhibit 34-8.Assume that the current price of sugar in the United States is $300 per ton (which includes a $100 per ton tariff on sugar imports).The removal of the $100 per ton tariff would increase consumers' surplus by an amount equal to area

Accepted Answer

A)  C. 
B)  C + G. 
C)  D + E + F. 
D)  C + D + E + F + G + H. 
E)  none of the above 
A)  C. 
B)  C + G. 
C)  D + E + F. 
D)  C + D + E + F + G + H. 
E)  none of the above

Question 4

List and describe three arguments that help to explain why nations sometimes restrict trade.Does everyone agree with these arguments?

Accepted Answer

The arguments that have been given to su

Question 5

In contrast to a tariff,a quota does not

Accepted Answer

A)  reduce consumers' surplus. 
B)  increase producers' surplus. 
C)  generate revenues for government. 
D)  raise price. 
E)  c and d 
A)  reduce consumers' surplus. 
B)  increase producers' surplus. 
C)  generate revenues for government. 
D)  raise price. 
E)  c and d

Question 6

International trade policies are largely advocated,argued,and lobbied for based more on their distributional effects than on their aggregate or overall effects.What does this imply?

Accepted Answer

A)  Producers will lobby for protectionism even though they may know that their gains from protectionism will be outweighed by the losses to consumers. 
B)  Consumers care more about how policies affect them than how policies affect them and everyone else,too. 
C)  Tariffs are more effective than quotas. 
D)  Consumers' surplus will rise (when it rises)more than producers' surplus will fall (when it falls). 
E)  none of the above 
A)  Producers will lobby for protectionism even though they may know that their gains from protectionism will be outweighed by the losses to consumers. 
B)  Consumers care more about how policies affect them than how policies affect them and everyone else,too. 
C)  Tariffs are more effective than quotas. 
D)  Consumers' surplus will rise (when it rises)more than producers' surplus will fall (when it falls). 
E)  none of the above

Question 7

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

Accepted Answer

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

Question 8

-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 X consume by specializing and trading?

Accepted Answer

A)  75 
B)  25 
C)  5 
D)  105 
E)  50 
A)  75 
B)  25 
C)  5 
D)  105 
E)  50

Question 9

If,at the world price,domestic producers are producing and selling 100 units of a good,then at the world price plus tariff it follows that

Accepted Answer

A)  they will be producing and selling more than 100 units of the good. 
B)  they will be producing and selling fewer than 100 units of the good. 
C)  producers' surplus will be less than what it is when domestic producers produce and sell 100 units. 
D)  consumers' surplus will be greater than what it is when domestic producers produce and sell 100 units. 
E)  c and d 
A)  they will be producing and selling more than 100 units of the good. 
B)  they will be producing and selling fewer than 100 units of the good. 
C)  producers' surplus will be less than what it is when domestic producers produce and sell 100 units. 
D)  consumers' surplus will be greater than what it is when domestic producers produce and sell 100 units. 
E)  c and d

Question 10

The difference between the highest amount a buyer would be willing to pay for a good and the amount she actually pays for it is

Accepted Answer

A)  producers' surplus. 
B)  consumers' surplus. 
C)  marginal revenue. 
D)  marginal utility. 
A)  producers' surplus. 
B)  consumers' surplus. 
C)  marginal revenue. 
D)  marginal utility.

Question 11

-Refer to Exhibit 34-6.Which of the following is true?

Accepted Answer

A)  Country A has a comparative advantage in both cheese and wine. 
B)  Country B has a comparative advantage in both cheese and wine. 
C)  Country A has a comparative advantage in cheese,and country B has a comparative advantage in wine. 
D)  Country B has a comparative advantage in cheese,and country A has a comparative advantage in wine. 
E)  none of the above 
A)  Country A has a comparative advantage in both cheese and wine. 
B)  Country B has a comparative advantage in both cheese and wine. 
C)  Country A has a comparative advantage in cheese,and country B has a comparative advantage in wine. 
D)  Country B has a comparative advantage in cheese,and country A has a comparative advantage in wine. 
E)  none of the above

Question 12

"New industries need to be protected or they won't have the opportunity to grow up." This is a statement of the __________ argument for trade restrictions.

Accepted Answer

A)  national-defense 
B)  infant-industry 
C)  anti-dumping 
D)  tariff 
E)  none of the above 
A)  national-defense 
B)  infant-industry 
C)  anti-dumping 
D)  tariff 
E)  none of the above

Question 13

Which of the following is not an argument for trade restrictions?

Accepted Answer

A)  the national defense argument 
B)  the infant industry argument 
C)  the comparative advantage argument 
D)  the antidumping argument 
A)  the national defense argument 
B)  the infant industry argument 
C)  the comparative advantage argument 
D)  the antidumping argument

The answer is: "A tax on imports." What is the question?

A tariff is a

-Refer to Exhibit 34-8.Assume that the current price of sugar in the United States is $300 per ton (which includes a $100 per ton tariff on sugar imports).The removal of the $100 per ton tariff would increase consumers' surplus by an amount equal to area

List and describe three arguments that help to explain why nations sometimes restrict trade.Does everyone agree with these arguments?

In contrast to a tariff,a quota does not

International trade policies are largely advocated,argued,and lobbied for based more on their distributional effects than on their aggregate or overall effects.What does this imply?

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

If,at the world price,domestic producers are producing and selling 100 units of a good,then at the world price plus tariff it follows that

The difference between the highest amount a buyer would be willing to pay for a good and the amount she actually pays for it is

-Refer to Exhibit 34-6.Which of the following is true?

"New industries need to be protected or they won't have the opportunity to grow up." This is a statement of the __________ argument for trade restrictions.

Which of the following is not an argument for trade restrictions?

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

Exam 21: International Finance

The answer is: "A tax on imports." What is the question?

A tariff is a

-Refer to Exhibit 34-8.Assume that the current price of sugar in the United States is $300 per ton (which includes a $100 per ton tariff on sugar imports).The removal of the $100 per ton tariff would increase consumers' surplus by an amount equal to area

List and describe three arguments that help to explain why nations sometimes restrict trade.Does everyone agree with these arguments?

In contrast to a tariff,a quota does not

International trade policies are largely advocated,argued,and lobbied for based more on their distributional effects than on their aggregate or overall effects.What does this imply?

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

If,at the world price,domestic producers are producing and selling 100 units of a good,then at the world price plus tariff it follows that

The difference between the highest amount a buyer would be willing to pay for a good and the amount she actually pays for it is

-Refer to Exhibit 34-6.Which of the following is true?

"New industries need to be protected or they won't have the opportunity to grow up." This is a statement of the __________ argument for trade restrictions.

Which of the following is not an argument for trade restrictions?

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 34-5.The opportunity cost of one unit of good B is for country 1 and for country 2.