Question 1

Protectionism

Accepted Answer

A)  is the use of cheap labour to protect firms from paying high wages. 
B)  is the use of trade barriers to protect domestic firms from foreign competition. 
C)  refers to reductions in tariffs and other barriers that protect consumers from paying high prices. 
D)  refers to the use of copyright and trademark laws to protect inventors and artists from losing the rights to their creative efforts. 
A)  is the use of cheap labour to protect firms from paying high wages. 
B)  is the use of trade barriers to protect domestic firms from foreign competition. 
C)  refers to reductions in tariffs and other barriers that protect consumers from paying high prices. 
D)  refers to the use of copyright and trademark laws to protect inventors and artists from losing the rights to their creative efforts. B

Question 2

Examples of ________ show how trade between two countries can make each better off.

Accepted Answer

A)  absolute advantage 
B)  comparative advantage 
C)  autarky 
D)  trade barriers 
A)  absolute advantage 
B)  comparative advantage 
C)  autarky 
D)  trade barriers B

Question 3

A tax imposed by a government on imports of a good into a country is called

Accepted Answer

A)  an import fine. 
B)  an import quota. 
C)  a tariff. 
D)  an import levy. 
A)  an import fine. 
B)  an import quota. 
C)  a tariff. 
D)  an import levy. C

Question 4

One reason a country does not specialise completely in production is that not all goods and services are traded internationally.

Accepted Answer

A) True 
 B)False

Question 5

Twenty-seven countries in Europe have formed the European Union (EU). After the EU was formed, it

Accepted Answer

A)  greatly decreased imports and exports among its member countries. 
B)  barred imports of 747 jumbo jets by its member countries; all EU countries must now buy jets from Airbus, a European company. 
C)  eliminated all tariffs among its member countries. 
D)  completed a trade treaty (NAFT
A)  that reduced tariff rates between the EU and North American countries. 
A)  greatly decreased imports and exports among its member countries. 
B)  barred imports of 747 jumbo jets by its member countries; all EU countries must now buy jets from Airbus, a European company. 
C)  eliminated all tariffs among its member countries. 
D)  completed a trade treaty (NAFT
A)  that reduced tariff rates between the EU and North American countries.

Question 6

One reason for the success that firms have in getting the government to erect barriers to foreign competition is that jobs lost to foreign competition are easy to identify but jobs created by foreign trade are often hard to identify. Which of the following is a second reason?

Accepted Answer

A)  The costs that tariffs and quotas impose on consumers are large in total but relatively small per person. 
B)  People who benefit from foreign trade tend not to vote in elections; people who are harmed by foreign trade are much more likely to vote. 
C)  Firms that benefit from trade barriers have more money to lobby government officials to support the barriers than do firms that are harmed by trade barriers. 
D)  The benefits from free trade are less than the costs. 
A)  The costs that tariffs and quotas impose on consumers are large in total but relatively small per person. 
B)  People who benefit from foreign trade tend not to vote in elections; people who are harmed by foreign trade are much more likely to vote. 
C)  Firms that benefit from trade barriers have more money to lobby government officials to support the barriers than do firms that are harmed by trade barriers. 
D)  The benefits from free trade are less than the costs.

Question 7

A numerical limit imposed by a government on the quantity of a good that can be imported into the country is called a

Accepted Answer

A)  tariff. 
B)  quota. 
C)  quantity floor. 
D)  barricade. 
A)  tariff. 
B)  quota. 
C)  quantity floor. 
D)  barricade.

Question 8

-Refer to Table 13-3. Select the statement that accurately interprets the data in the table.

Accepted Answer

A)  Bryce has a greater opportunity cost than Tina for making candles. 
B)  Bryce's opportunity cost for making candles is less than Tina's. 
C)  Tina has a greater opportunity cost than Bryce for making candles. 
D)  Bryce's opportunity cost for making candles and making soap are both greater than Tina's. 
A)  Bryce has a greater opportunity cost than Tina for making candles. 
B)  Bryce's opportunity cost for making candles is less than Tina's. 
C)  Tina has a greater opportunity cost than Bryce for making candles. 
D)  Bryce's opportunity cost for making candles and making soap are both greater than Tina's.

Question 9

Between 1960 and 2010, Australia's imports increased from approximately

Accepted Answer

A)  15% of GDP to 20% of GDP. 
B)  10% of GDP to 18% of GDP. 
C)  24% of GDP to 30% of GDP. 
D)  35% of GDP to 50% of GDP. 
A)  15% of GDP to 20% of GDP. 
B)  10% of GDP to 18% of GDP. 
C)  24% of GDP to 30% of GDP. 
D)  35% of GDP to 50% of GDP.

Question 10

Once a country has a comparative advantage in producing a product, it cannot lose that advantage.

Accepted Answer

A) True 
 B)False

Question 11

If a country has an absolute advantage in producing a product, it must also have a comparative advantage in producing that product.

Accepted Answer

A) True 
 B)False

Question 12

A tariff

Accepted Answer

A)  makes domestic consumers worse off. 
B)  makes both domestic producers and consumers worse off. 
C)  makes everyone better off. 
D)  makes domestic producers worse off. 
A)  makes domestic consumers worse off. 
B)  makes both domestic producers and consumers worse off. 
C)  makes everyone better off. 
D)  makes domestic producers worse off.

Question 13

In 2009, approximately what proportion of world merchandise trade did Australia account for?

Accepted Answer

A)  1% 
B)  12% 
C)  8% 
D)  5% 
A)  1% 
B)  12% 
C)  8% 
D)  5%

Question 14

-Refer to Table 13-4. Fill in the following table with the opportunity costs of producing handbags and jackets for Cambodia and Thailand.

Accepted Answer

The answer of 
-Refer to Table 13-4. Fill in the...

Question 15

A quota is the same as a voluntary export restraint.

Accepted Answer

A) True 
 B)False

Question 16

Measuring the impact of a quota or tariff on the economy is an example of ________. Stating that a quota or tariff should be eliminated is an example of ________.

Accepted Answer

A)  statistical analysis; economic analysis 
B)  positive analysis; normative analysis 
C)  econometric analysis; protectionism 
D)  trade analysis; an opinion 
A)  statistical analysis; economic analysis 
B)  positive analysis; normative analysis 
C)  econometric analysis; protectionism 
D)  trade analysis; an opinion

Question 17

-Refer to Table 13-2. Select the statement that accurately interprets the data in the table.

Accepted Answer

A)  Sarita has a greater opportunity cost than Gabriel for baking cakes. 
B)  Sarita's opportunity cost for baking cakes is less than Gabriel's. 
C)  Gabriel has a greater opportunity cost than Sarita for baking pies. 
D)  Gabriel's opportunity cost for baking cakes and baking pies are both greater than Sarita's. 
A)  Sarita has a greater opportunity cost than Gabriel for baking cakes. 
B)  Sarita's opportunity cost for baking cakes is less than Gabriel's. 
C)  Gabriel has a greater opportunity cost than Sarita for baking pies. 
D)  Gabriel's opportunity cost for baking cakes and baking pies are both greater than Sarita's.

Question 18

Offshoring is

Accepted Answer

A)  when workers in a foreign country are hired by a domestic firm to produce something sold domestically. 
B)  importing a manufactured good made by a foreign firm. 
C)  exporting a good or service to buyers in other countries. 
D)  when domestic workers are hired by a domestic firm to produce something sold exclusively in other countries. 
A)  when workers in a foreign country are hired by a domestic firm to produce something sold domestically. 
B)  importing a manufactured good made by a foreign firm. 
C)  exporting a good or service to buyers in other countries. 
D)  when domestic workers are hired by a domestic firm to produce something sold exclusively in other countries.

Question 19

Domestically produced goods and services sold to other countries are referred to as

Accepted Answer

A)  capital outflow. 
B)  exports. 
C)  imports. 
D)  transfer payments. 
A)  capital outflow. 
B)  exports. 
C)  imports. 
D)  transfer payments.

Question 20

-Refer to Table 13-5. Fill in the following table with the opportunity costs of producing bows and arrows for Ahmet and MyLinh.

Accepted Answer

The answer of 
-Refer to Table 13-5. Fill in the...

Protectionism

Examples of ________ show how trade between two countries can make each better off.

A tax imposed by a government on imports of a good into a country is called

One reason a country does not specialise completely in production is that not all goods and services are traded internationally.

Twenty-seven countries in Europe have formed the European Union (EU). After the EU was formed, it

One reason for the success that firms have in getting the government to erect barriers to foreign competition is that jobs lost to foreign competition are easy to identify but jobs created by foreign trade are often hard to identify. Which of the following is a second reason?

A numerical limit imposed by a government on the quantity of a good that can be imported into the country is called a

-Refer to Table 13-3. Select the statement that accurately interprets the data in the table.

Between 1960 and 2010, Australia's imports increased from approximately

Once a country has a comparative advantage in producing a product, it cannot lose that advantage.

If a country has an absolute advantage in producing a product, it must also have a comparative advantage in producing that product.

A tariff

In 2009, approximately what proportion of world merchandise trade did Australia account for?

-Refer to Table 13-4. Fill in the following table with the opportunity costs of producing handbags and jackets for Cambodia and Thailand.

A quota is the same as a voluntary export restraint.

Measuring the impact of a quota or tariff on the economy is an example of . Stating that a quota or tariff should be eliminated is an example of .

-Refer to Table 13-2. Select the statement that accurately interprets the data in the table.

Offshoring is

Domestically produced goods and services sold to other countries are referred to as

-Refer to Table 13-5. Fill in the following table with the opportunity costs of producing bows and arrows for Ahmet and MyLinh.

Economics Foundations and Models

Choices and Trade - Offs in the Market

Where Prices Come Frome : The Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency , Government Price Setting and Taxes

Concumer Choice and Behavioural Economics

Technology , Production and Costs

Firms in Perfectly Compitive Markets

Monopoly Markets

Monopolistic Competition : The Competitive Model in More Realistic Setting

Oligopoly : Firms in Less Competitve Markets

The Market for Labour and Other Factors of Production

Government Intervention in the Market

Externalities , Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters

Exam 13: International Trade

Protectionism

Examples of ________ show how trade between two countries can make each better off.

A tax imposed by a government on imports of a good into a country is called

One reason a country does not specialise completely in production is that not all goods and services are traded internationally.

Twenty-seven countries in Europe have formed the European Union (EU). After the EU was formed, it

One reason for the success that firms have in getting the government to erect barriers to foreign competition is that jobs lost to foreign competition are easy to identify but jobs created by foreign trade are often hard to identify. Which of the following is a second reason?

A numerical limit imposed by a government on the quantity of a good that can be imported into the country is called a

-Refer to Table 13-3. Select the statement that accurately interprets the data in the table.

Between 1960 and 2010, Australia's imports increased from approximately

Once a country has a comparative advantage in producing a product, it cannot lose that advantage.

If a country has an absolute advantage in producing a product, it must also have a comparative advantage in producing that product.

A tariff

In 2009, approximately what proportion of world merchandise trade did Australia account for?

-Refer to Table 13-4. Fill in the following table with the opportunity costs of producing handbags and jackets for Cambodia and Thailand.

A quota is the same as a voluntary export restraint.

Measuring the impact of a quota or tariff on the economy is an example of ________. Stating that a quota or tariff should be eliminated is an example of ________.

-Refer to Table 13-2. Select the statement that accurately interprets the data in the table.

Offshoring is

Domestically produced goods and services sold to other countries are referred to as

-Refer to Table 13-5. Fill in the following table with the opportunity costs of producing bows and arrows for Ahmet and MyLinh.

Economics Foundations and Models

Choices and Trade - Offs in the Market

Where Prices Come Frome : The Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency , Government Price Setting and Taxes

Concumer Choice and Behavioural Economics

Technology , Production and Costs

Firms in Perfectly Compitive Markets

Monopoly Markets

Monopolistic Competition : The Competitive Model in More Realistic Setting

Oligopoly : Firms in Less Competitve Markets

The Market for Labour and Other Factors of Production

Government Intervention in the Market

Externalities , Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters

Measuring the impact of a quota or tariff on the economy is an example of . Stating that a quota or tariff should be eliminated is an example of .