Question 1

If an import tariff is reduced, the domestic quantity demanded is ____ and the quantity supplied domestically is ____, ____ the quantity of goods imported.

Accepted Answer

A) greater; lower; reducing. 
B) lower; greater, reducing. 
C) greater; lower; increasing. 
D) lower; greater; increasing. 
A) greater; lower; reducing. 
B) lower; greater, reducing. 
C) greater; lower; increasing. 
D) lower; greater; increasing.

Question 2

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, imports of Japanese goods into the United States will tend to:

Accepted Answer

A) rise. 
B) fall. 
C) stay the same. 
D) change in an indeterminate direction. 
A) rise. 
B) fall. 
C) stay the same. 
D) change in an indeterminate direction.

Question 3

What would be the statistical discrepancy for a current account balance of -$85 billion and a capital account balance of $80 billion?

Accepted Answer

A) -$165 billion 
B) -$5 billion 
C) $5 billion 
D) $165 billion 
E) $0 
A) -$165 billion 
B) -$5 billion 
C) $5 billion 
D) $165 billion 
E) $0

Question 4

If England uses one week's time to produce ten yards of cloth or two barrels of wine and Portugal uses one week's time to produce twelve yards of cloth or six barrels of wine, England has the comparative advantage in both goods.

Accepted Answer

A) True 
 B)False

Question 5

If Japan does not have a comparative advantage in producing rice, the consequences of adopting a Japanese policy of reducing or eliminating imports of rice into their country would include:

Accepted Answer

A) Japan will be able to consume a combination of rice and other goods' consumption beyond their domestic production possibilities curve. 
B) the real incomes of Japanese rice producers would rise, but the real incomes of Japanese rice consumers would fall. 
C) the real incomes of Japanese rice consumers would rise, but the real incomes of Japanese rice producers would fall. 
D) the price of rice in Japan will fall. 
A) Japan will be able to consume a combination of rice and other goods' consumption beyond their domestic production possibilities curve. 
B) the real incomes of Japanese rice producers would rise, but the real incomes of Japanese rice consumers would fall. 
C) the real incomes of Japanese rice consumers would rise, but the real incomes of Japanese rice producers would fall. 
D) the price of rice in Japan will fall.

Question 6

Figure 18-C  
-Refer to Figure 18-C.The amount of government revenue equal to the tariff is equal to area:

Accepted Answer

A) D + E + F 
B) E 
C) B + D + E + F 
D) C + D + E + F 
E) zero 
A) D + E + F 
B) E 
C) B + D + E + F 
D) C + D + E + F 
E) zero

Question 7

From which of the following countries does the U.S.import the largest dollar value of goods?

Accepted Answer

A) Canada 
B) Mexico 
C) Great Britain 
D) Japan 
A) Canada 
B) Mexico 
C) Great Britain 
D) Japan

Question 8

The balance on current account records information about:

Accepted Answer

A) purchases of U.S. financial assets by foreigners. 
B) purchases of foreign financial assets by Americans. 
C) the levels of imports and exports of goods and services for a country. 
D) foreign investments in U.S. bonds, stocks, and other items. 
A) purchases of U.S. financial assets by foreigners. 
B) purchases of foreign financial assets by Americans. 
C) the levels of imports and exports of goods and services for a country. 
D) foreign investments in U.S. bonds, stocks, and other items.

Question 9

Trade restrictions will stop foreign imports, which will increase American employment and protect American jobs.Most economists realize this argument is wrong.Can you explain why?

Accepted Answer

Trade restrictions will stop foreign imp

Question 10

Explain how an increase in the American demand for German goods leads to a change in the Euro relative to the U.S.dollar.

Accepted Answer

Americans who wish to buy more German go

Question 11

The difference between the value of a country's merchandise exports and merchandise imports is known as the balance:

Accepted Answer

A) of payments. 
B) of trade. 
C) on current account. 
D) on capital account. 
A) of payments. 
B) of trade. 
C) on current account. 
D) on capital account.

Question 12

Ceteris paribus, if the U.S.dollar depreciated in relation to the Canadian dollar, which of the following would be true?

Accepted Answer

A) U.S. goods would become less expensive to Canadian consumers. 
B) Canadian goods would become more expensive to U.S. consumers. 
C) U.S. goods would become less expensive to European consumers. 
D) all of the above 
E) A and B above only 
A) U.S. goods would become less expensive to Canadian consumers. 
B) Canadian goods would become more expensive to U.S. consumers. 
C) U.S. goods would become less expensive to European consumers. 
D) all of the above 
E) A and B above only

Question 13

If the United States purchases oil from Kuwait, what is the effect in the exchange market?

Accepted Answer

A) It will increase the supply of U.S. dollars. 
B) It will decrease the supply of U.S. dollars. 
C) It will increase the demand for U.S. dollars. 
D) It will decrease the demand for U.S. dollars. 
A) It will increase the supply of U.S. dollars. 
B) It will decrease the supply of U.S. dollars. 
C) It will increase the demand for U.S. dollars. 
D) It will decrease the demand for U.S. dollars.

Question 14

The exchange rate:

Accepted Answer

A) states the price of one currency in terms of another currency. 
B) is the rate at which one country's money is flowing to a second country. 
C) is closely related to the concept of comparative advantage. 
D) is closely related to the concept of absolute advantage. 
A) states the price of one currency in terms of another currency. 
B) is the rate at which one country's money is flowing to a second country. 
C) is closely related to the concept of comparative advantage. 
D) is closely related to the concept of absolute advantage.

Question 15

Introducing a tariff on vitamin E would:

Accepted Answer

A) reduce imports of vitamin E. 
B) increase U.S. consumption of domestically produced vitamin E. 
C) decrease total U.S. consumption of vitamin E. 
D) do all of the above. 
E) do none of the above. 
A) reduce imports of vitamin E. 
B) increase U.S. consumption of domestically produced vitamin E. 
C) decrease total U.S. consumption of vitamin E. 
D) do all of the above. 
E) do none of the above.

Question 16

A tax levied on imported goods is called a(n)

Accepted Answer

A) excise tax. 
B) quota. 
C) foreign profits tax. 
D) tariff. 
A) excise tax. 
B) quota. 
C) foreign profits tax. 
D) tariff.

Question 17

Suppose a video craze in the United States makes a particular Japanese-produced video game very popular.This would tend to:

Accepted Answer

A) affect the U.S. balance of payments but not the balance of trade. 
B) reduce any existing balance of trade deficit in the United States. 
C) increase the balance of trade deficit of the United States. 
D) increase the balance of trade surplus of the United States. 
A) affect the U.S. balance of payments but not the balance of trade. 
B) reduce any existing balance of trade deficit in the United States. 
C) increase the balance of trade deficit of the United States. 
D) increase the balance of trade surplus of the United States.

Question 18

Tariffs contribute to higher prices of textile products imported into the United States, but import quotas on textiles brought into the United States do not.

Accepted Answer

A) True 
 B)False

Question 19

One country will have a comparative advantage over another if its production possibilities

Accepted Answer

A) frontier is higher. 
B) curve has a different slope. 
C) curve lies closer to the origin. 
D) curve lies farther from the origin. 
A) frontier is higher. 
B) curve has a different slope. 
C) curve lies closer to the origin. 
D) curve lies farther from the origin.

Question 20

It is possible for some individuals within countries to lose from reducing international trade barriers.

Accepted Answer

A) True 
 B)False

If an import tariff is reduced, the domestic quantity demanded is and the quantity supplied domestically is , the quantity of goods imported.

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, imports of Japanese goods into the United States will tend to:

What would be the statistical discrepancy for a current account balance of -$85 billion and a capital account balance of $80 billion?

If England uses one week's time to produce ten yards of cloth or two barrels of wine and Portugal uses one week's time to produce twelve yards of cloth or six barrels of wine, England has the comparative advantage in both goods.

If Japan does not have a comparative advantage in producing rice, the consequences of adopting a Japanese policy of reducing or eliminating imports of rice into their country would include:

Figure 18-C -Refer to Figure 18-C.The amount of government revenue equal to the tariff is equal to area:

From which of the following countries does the U.S.import the largest dollar value of goods?

The balance on current account records information about:

Trade restrictions will stop foreign imports, which will increase American employment and protect American jobs.Most economists realize this argument is wrong.Can you explain why?

Explain how an increase in the American demand for German goods leads to a change in the Euro relative to the U.S.dollar.

The difference between the value of a country's merchandise exports and merchandise imports is known as the balance:

Ceteris paribus, if the U.S.dollar depreciated in relation to the Canadian dollar, which of the following would be true?

If the United States purchases oil from Kuwait, what is the effect in the exchange market?

The exchange rate:

Introducing a tariff on vitamin E would:

A tax levied on imported goods is called a(n)

Suppose a video craze in the United States makes a particular Japanese-produced video game very popular.This would tend to:

Tariffs contribute to higher prices of textile products imported into the United States, but import quotas on textiles brought into the United States do not.

One country will have a comparative advantage over another if its production possibilities

It is possible for some individuals within countries to lose from reducing international trade barriers.

The Role and Method of Economics

The Economic Way of Thinking

Supply and Demand

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Economic Growth

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

Filters

Exam 18: International Economics

If an import tariff is reduced, the domestic quantity demanded is ____ and the quantity supplied domestically is ____, ____ the quantity of goods imported.

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, imports of Japanese goods into the United States will tend to:

What would be the statistical discrepancy for a current account balance of -$85 billion and a capital account balance of $80 billion?

If England uses one week's time to produce ten yards of cloth or two barrels of wine and Portugal uses one week's time to produce twelve yards of cloth or six barrels of wine, England has the comparative advantage in both goods.

If Japan does not have a comparative advantage in producing rice, the consequences of adopting a Japanese policy of reducing or eliminating imports of rice into their country would include:

Figure 18-C -Refer to Figure 18-C.The amount of government revenue equal to the tariff is equal to area:

From which of the following countries does the U.S.import the largest dollar value of goods?

The balance on current account records information about:

Trade restrictions will stop foreign imports, which will increase American employment and protect American jobs.Most economists realize this argument is wrong.Can you explain why?

Explain how an increase in the American demand for German goods leads to a change in the Euro relative to the U.S.dollar.

The difference between the value of a country's merchandise exports and merchandise imports is known as the balance:

Ceteris paribus, if the U.S.dollar depreciated in relation to the Canadian dollar, which of the following would be true?

If the United States purchases oil from Kuwait, what is the effect in the exchange market?

The exchange rate:

Introducing a tariff on vitamin E would:

A tax levied on imported goods is called a(n)

Suppose a video craze in the United States makes a particular Japanese-produced video game very popular.This would tend to:

Tariffs contribute to higher prices of textile products imported into the United States, but import quotas on textiles brought into the United States do not.

One country will have a comparative advantage over another if its production possibilities

It is possible for some individuals within countries to lose from reducing international trade barriers.

The Role and Method of Economics

The Economic Way of Thinking

Supply and Demand

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Economic Growth

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

Filters

If an import tariff is reduced, the domestic quantity demanded is and the quantity supplied domestically is , the quantity of goods imported.