Question 1

The biggest factor in the 1990s productivity boom in the United States was:

Accepted Answer

A)  information technology. 
B)  agriculture. 
C)  education. 
D)  technological advance in the retail sector. 
A)  information technology. 
B)  agriculture. 
C)  education. 
D)  technological advance in the retail sector.

Question 2

Use the following to answer questions:
Figure: Trade  
-(Figure: Trade) Refer to the figure. With free international trade, the country in this figure will find that the good:

Accepted Answer

A)  becomes cheaper for domestic consumers. 
B)  becomes more expensive for domestic consumers. 
C)  does not change in price. 
D)  may get cheaper or more expensive for domestic consumers but it is impossible to tell. 
A)  becomes cheaper for domestic consumers. 
B)  becomes more expensive for domestic consumers. 
C)  does not change in price. 
D)  may get cheaper or more expensive for domestic consumers but it is impossible to tell.

Question 3

Which of the following statements regarding trade is NOT true?

Accepted Answer

A)  Trade increases productivity through specialization and production according to comparative advantage. 
B)  Trade raises the price of goods for both trading partners. 
C)  Trade increases productivity through specialization and the division of knowledge. 
D)  Trade makes people better off when preferences differ. 
A)  Trade increases productivity through specialization and production according to comparative advantage. 
B)  Trade raises the price of goods for both trading partners. 
C)  Trade increases productivity through specialization and the division of knowledge. 
D)  Trade makes people better off when preferences differ.

Question 4

A tariff is a:

Accepted Answer

A)  tax credit for domestic exports. 
B)  tax on imports. 
C)  temporary grant of monopoly rights. 
D)  renewable subsidy to the energy industry. 
A)  tax credit for domestic exports. 
B)  tax on imports. 
C)  temporary grant of monopoly rights. 
D)  renewable subsidy to the energy industry.

Question 5

Use the following to answer questions:
Figure: Foreign Trade 2  
-(Figure: Foreign Trade 2) Refer to the figure. What is the dollar value of the consumer surplus that consumers could gain if the trade restriction were removed?

Accepted Answer

A)  $35,000 
B)  $22,500 
C)  $30,000 
D)  $25,000 
A)  $35,000 
B)  $22,500 
C)  $30,000 
D)  $25,000

Question 6

As a result of U.S. quotas on sugar imports, all of the following are true, EXCEPT:

Accepted Answer

A)  the United States pays about twice the world price for sugar. 
B)  the gains to American producers are greater than the losses to American consumers. 
C)  foreign sugar producers-mostly in poor countries-suffer. 
D)  a small group of domestic sugar producers benefit. 
A)  the United States pays about twice the world price for sugar. 
B)  the gains to American producers are greater than the losses to American consumers. 
C)  foreign sugar producers-mostly in poor countries-suffer. 
D)  a small group of domestic sugar producers benefit.

Question 7

Import trade tends to ______ domestic quantity of a good exchanged.

Accepted Answer

A)  increase 
B)  decrease 
C)  hold constant 
D)  have an indeterminate effect on 
A)  increase 
B)  decrease 
C)  hold constant 
D)  have an indeterminate effect on

Question 8

Use the following to answer questions:
Figure: Foreign Trade 2  
-(Figure: Foreign Trade 2) Refer to the figure. What is the dollar value of the deadweight loss created as a result of prohibiting trade in this market?

Accepted Answer

A)  $2,500 
B)  $10,000 
C)  $7,500 
D)  $5,000 
A)  $2,500 
B)  $10,000 
C)  $7,500 
D)  $5,000

Question 9

As GDP per capita increases, child labor tends to

Accepted Answer

A)  increase. 
B)  decrease. 
C)  remain the same. 
D)  change unpredictably. 
A)  increase. 
B)  decrease. 
C)  remain the same. 
D)  change unpredictably.

Question 10

Table: Semiconductors

Accepted Answer

A)  export 550 semiconductors. 
B)  export 150 semiconductors. 
C)  import 550 semiconductors. 
D)  import 150 semiconductors. 
A)  export 550 semiconductors. 
B)  export 150 semiconductors. 
C)  import 550 semiconductors. 
D)  import 150 semiconductors.

Question 11

Imposing a restrictive quota on the import of sugar will likely:

Accepted Answer

A)  increase the price of sugar and decrease the quantity consumed. 
B)  increase the price of sugar and increase the quantity consumed. 
C)  leave the price of sugar unchanged and decrease the quantity consumed. 
D)  leave the price of sugar unchanged and increase the quantity consumed. 
A)  increase the price of sugar and decrease the quantity consumed. 
B)  increase the price of sugar and increase the quantity consumed. 
C)  leave the price of sugar unchanged and decrease the quantity consumed. 
D)  leave the price of sugar unchanged and increase the quantity consumed.

Question 12

Use the following to answer questions:
Figure: International Trade 4  
-(Figure: International Trade 4) Refer to the figure. If, in this figure, the government eliminated free trade, producer surplus would:

Accepted Answer

A)  increase by $18. 
B)  increase by $50. 
C)  decrease by $36. 
D)  increase by $22.50. 
A)  increase by $18. 
B)  increase by $50. 
C)  decrease by $36. 
D)  increase by $22.50.

Question 13

What are the arguments in favor of trade restrictions, and what are their counterarguments? According to most economists, do these arguments really justify trade restrictions? Explain.

Accepted Answer

Arguments mentioned in the text include

Question 14

Which statement is TRUE?

Accepted Answer

A)  Although inefficient, trade restrictions are effective at reducing child labor. 
B)  Most child labor around the world takes place in factories that export products. 
C)  Rising real GDP per capita has been an important force in reducing child labor. 
D)  About 50% of the world's children aged 10 to 14 work. 
A)  Although inefficient, trade restrictions are effective at reducing child labor. 
B)  Most child labor around the world takes place in factories that export products. 
C)  Rising real GDP per capita has been an important force in reducing child labor. 
D)  About 50% of the world's children aged 10 to 14 work.

Question 15

The losses from trade protection include:

Accepted Answer

A)  deadweight loss only. 
B)  wasted resources only. 
C)  neither deadweight loss nor wasted resources. 
D)  both deadweight loss and wasted resources. 
A)  deadweight loss only. 
B)  wasted resources only. 
C)  neither deadweight loss nor wasted resources. 
D)  both deadweight loss and wasted resources.

The biggest factor in the 1990s productivity boom in the United States was:

Use the following to answer questions: Figure: Trade -(Figure: Trade) Refer to the figure. With free international trade, the country in this figure will find that the good:

Which of the following statements regarding trade is NOT true?

A tariff is a:

Use the following to answer questions: Figure: Foreign Trade 2 -(Figure: Foreign Trade 2) Refer to the figure. What is the dollar value of the consumer surplus that consumers could gain if the trade restriction were removed?

As a result of U.S. quotas on sugar imports, all of the following are true, EXCEPT:

Import trade tends to ______ domestic quantity of a good exchanged.

Use the following to answer questions: Figure: Foreign Trade 2 -(Figure: Foreign Trade 2) Refer to the figure. What is the dollar value of the deadweight loss created as a result of prohibiting trade in this market?

As GDP per capita increases, child labor tends to

Table: Semiconductors

Imposing a restrictive quota on the import of sugar will likely:

Use the following to answer questions: Figure: International Trade 4 -(Figure: International Trade 4) Refer to the figure. If, in this figure, the government eliminated free trade, producer surplus would:

What are the arguments in favor of trade restrictions, and what are their counterarguments? According to most economists, do these arguments really justify trade restrictions? Explain.

Which statement is TRUE?

The losses from trade protection include:

The Big Ideas

The Power of Trade and Comparative

Supply and Demand

Equilibrium

Elasticity and Its Applications

Taxes and Subsidies

The Price System

Price Ceilings and Floors

Externalities- When the Price Is Not Right

Costs and Profit Maximization Under Competition

Competition and the Invisible Hand

Monopoly

Price Discrimination

Oligopoly and Game Theory

Competing for Monopoly

Monopolistic Competition and Advertising

Labor Markets

Public Goods and the Tragedy of the Commons

Political Economy and Public Choice

Economics, Ethics, and Public Policy

Managing Incentives

Stock Markets and Personal Finance

Price Discrimination

Consumer Choice

Filters

Exam 9: International Trade

The biggest factor in the 1990s productivity boom in the United States was:

Use the following to answer questions: Figure: Trade -(Figure: Trade) Refer to the figure. With free international trade, the country in this figure will find that the good:

Which of the following statements regarding trade is NOT true?

A tariff is a:

Use the following to answer questions: Figure: Foreign Trade 2 -(Figure: Foreign Trade 2) Refer to the figure. What is the dollar value of the consumer surplus that consumers could gain if the trade restriction were removed?

As a result of U.S. quotas on sugar imports, all of the following are true, EXCEPT:

Import trade tends to ______ domestic quantity of a good exchanged.

Use the following to answer questions: Figure: Foreign Trade 2 -(Figure: Foreign Trade 2) Refer to the figure. What is the dollar value of the deadweight loss created as a result of prohibiting trade in this market?

As GDP per capita increases, child labor tends to

Table: Semiconductors

Imposing a restrictive quota on the import of sugar will likely:

Use the following to answer questions: Figure: International Trade 4 -(Figure: International Trade 4) Refer to the figure. If, in this figure, the government eliminated free trade, producer surplus would:

What are the arguments in favor of trade restrictions, and what are their counterarguments? According to most economists, do these arguments really justify trade restrictions? Explain.

Which statement is TRUE?

The losses from trade protection include:

The Big Ideas

The Power of Trade and Comparative

Supply and Demand

Equilibrium

Elasticity and Its Applications

Taxes and Subsidies

The Price System

Price Ceilings and Floors

Externalities- When the Price Is Not Right

Costs and Profit Maximization Under Competition

Competition and the Invisible Hand

Monopoly

Price Discrimination

Oligopoly and Game Theory

Competing for Monopoly

Monopolistic Competition and Advertising

Labor Markets

Public Goods and the Tragedy of the Commons

Political Economy and Public Choice

Economics, Ethics, and Public Policy

Managing Incentives

Stock Markets and Personal Finance

Price Discrimination

Consumer Choice

Filters