Exam 18: International Economics

Tariffs and other trade restrictions increase the domestic scarcity of products from abroad.Such policies benefit domestic producers of the restricted products at the expense of domestic consumers.This statement:

Generally, restrictions limiting imports will also help domestic producers who are exporters.

"Tariffs are necessary for reasons of national security." Discuss the validity of this statement.

Compared to the no-trade situation, when a country imports a good:

In Artland the opportunity cost of producing 1 ton of wheat is 2 tons of corn, while in Scienceland, the opportunity cost of producing 2 tons of wheat is 3 tons of corn.Both countries would be better off if:

The main reason why one nation trades with another is to

Which of the following is not an argument favoring tariffs?

Under a system of flexible exchange rates, a decrease in the demand for a country's currency on the foreign exchange market will:

If opening up international trade resulted in the U.S.importing ballpoint pens, what would tend to happen to the U.S.price of ballpoint pens?

The infant industry argument for protectionism suggest that an industry must be protected in the early stages of its development so that:

Fact Pattern 18-C Alternate Outputs from One Day's Labor Input: United States: 12 bushels of wheat or 3 yards of textiles. Great Britain: 3 bushels of wheat or 12 yards of textiles. -Refer to Fact Pattern 18-C.The opportunity cost of one bushel of wheat in Great Britain is

If the exchange rate between yen and dollars were 120 yen per dollar, when an American purchases a good valued at 600 yen, its cost in dollars would be:

Which of the following is not a major trading partner of the U.S.?

If more French tourists visit the Grand Canyon, what is the effect in the exchange market?

What are the main arguments presented against flexible exchange rates?

Which of the following is not a short-run impact of increasing tariffs on the American industries they seek to protect?

Suppose that the exchange rate between Japanese yen and U.S.dollars is originally 130 yen to the dollar.If it then changes to 150 yen to the dollar, the price of U.S.goods to Japanese importers will:

If real incomes in foreign nations were growing less rapidly than U.S.real incomes, one would expect that as a result,

Which of the following restricts the volume of international trade?

A nation can gain from international trade when the relative domestic prices of the nation differs from that in other countries, and it imports goods for which it is a high opportunity cost producer.