Question 1

Generally speaking, protection from foreign competition benefits:

Accepted Answer

A) both domestic producers and foreign producers. 
B) both domestic consumers and foreign consumers 
C) domestic consumers and foreign consumers. 
D) neither domestic producers nor foreign producers. 
E) domestic producers at the expense of domestic consumers. 
A) both domestic producers and foreign producers. 
B) both domestic consumers and foreign consumers 
C) domestic consumers and foreign consumers. 
D) neither domestic producers nor foreign producers. 
E) domestic producers at the expense of domestic consumers.

Question 2

The notion of reciprocity means that one nation will impose import restrictions on another in order to:

Accepted Answer

A) stimulate an increase in trade restrictions in the latter. 
B) stimulate a decrease in trade restrictions in the latter. 
C) eliminate trade restrictions immediately in both countries. 
D) improve the government revenue collections through tariffs in both countries. 
E) enforce standards of product quality in the latter. 
A) stimulate an increase in trade restrictions in the latter. 
B) stimulate a decrease in trade restrictions in the latter. 
C) eliminate trade restrictions immediately in both countries. 
D) improve the government revenue collections through tariffs in both countries. 
E) enforce standards of product quality in the latter.

Question 3

The figure given below depicts the negatively sloped demand and positively sloped supply curves of wheat in a country. Figure 35.2   In Figure 35.2, if the world price per bushel of wheat is $25, and a tariff of $10 is imposed, what is the domestic production?

Accepted Answer

A) 300 bushels 
B) 450 bushels 
C) 400 bushels 
D) 150 bushels 
E) 200 bushels 
A) 300 bushels 
B) 450 bushels 
C) 400 bushels 
D) 150 bushels 
E) 200 bushels

Question 4

According to economists, which of the following acts was partially responsible for the Great Depression of the 1930s?

Accepted Answer

A) The Robinson-Patman Act 
B) The National Recovery Act 
C) The Smoot-Hawley Tariff Act 
D) The Sarbanes-Oxley Act 
E) The Sherman Antitrust Act 
A) The Robinson-Patman Act 
B) The National Recovery Act 
C) The Smoot-Hawley Tariff Act 
D) The Sarbanes-Oxley Act 
E) The Sherman Antitrust Act

Question 5

The figure below shows the demand (D)and supply (S)curves of cocoa in the U.S. Figure 35.4   Refer to Figure 35.4.If cocoa sells for $6 per pound in the world market, determine the volume of U.S.cocoa imports.

Accepted Answer

A) 250 pounds 
B) 350 pounds 
C) 300 pounds 
D) 150 pounds 
E) 200 pounds 
A) 250 pounds 
B) 350 pounds 
C) 300 pounds 
D) 150 pounds 
E) 200 pounds

Question 6

The figure below shows the demand (D)and supply (S)curves of corn syrups. Figure 35.3   In Figure 35.3, if the world price per gallon is $8, then without quotas:

Accepted Answer

A) 50 gallons of corn syrup will be imported. 
B) 35 gallons of corn syrup will be imported. 
C) 30 gallons of corn syrup will be imported. 
D) 20 gallons of corn syrup will be imported. 
E) 45 gallons of corn syrup will be imported. 
A) 50 gallons of corn syrup will be imported. 
B) 35 gallons of corn syrup will be imported. 
C) 30 gallons of corn syrup will be imported. 
D) 20 gallons of corn syrup will be imported. 
E) 45 gallons of corn syrup will be imported.

Question 7

Creating conditions for fair trade by limiting imports will make the domestic consumers better off, as they will be required to pay low prices for the products.

Accepted Answer

A) True 
 B)False

Question 8

The figure below shows the demand (D)and supply (S)curves of corn syrups. Figure 35.3   In Figure 35.3, suppose an import quota of 30 gallons of corn syrup is imposed.If the world price per gallon is $4:

Accepted Answer

A) there will be an excess domestic demand of approximately 35 gallons. 
B) the domestic market will be in equilibrium. 
C) there will be an excess domestic demand for 10 gallons. 
D) there will be an excess supply of 20 gallons. 
E) there will be an excess domestic demand for 20 gallons. 
A) there will be an excess domestic demand of approximately 35 gallons. 
B) the domestic market will be in equilibrium. 
C) there will be an excess domestic demand for 10 gallons. 
D) there will be an excess supply of 20 gallons. 
E) there will be an excess domestic demand for 20 gallons.

Question 9

The figure given below depicts the negatively sloped demand and positively sloped supply curves of wheat in a country. Figure 35.2   According to Figure 35.2, if the world price per bushel of wheat is $25, how much is the domestic demand?

Accepted Answer

A) 400 bushels 
B) 450 bushels 
C) 200 bushels 
D) 300 bushels 
E) 150 bushels 
A) 400 bushels 
B) 450 bushels 
C) 200 bushels 
D) 300 bushels 
E) 150 bushels

Exam 56: International Trade Restrictions

Generally speaking, protection from foreign competition benefits:

The notion of reciprocity means that one nation will impose import restrictions on another in order to:

The figure given below depicts the negatively sloped demand and positively sloped supply curves of wheat in a country. Figure 35.2 In Figure 35.2, if the world price per bushel of wheat is $25, and a tariff of $10 is imposed, what is the domestic production?

According to economists, which of the following acts was partially responsible for the Great Depression of the 1930s?

The figure below shows the demand (D)and supply (S)curves of cocoa in the U.S. Figure 35.4 Refer to Figure 35.4.If cocoa sells for $6 per pound in the world market, determine the volume of U.S.cocoa imports.

The figure below shows the demand (D)and supply (S)curves of corn syrups. Figure 35.3 In Figure 35.3, if the world price per gallon is $8, then without quotas:

Creating conditions for fair trade by limiting imports will make the domestic consumers better off, as they will be required to pay low prices for the products.

The figure below shows the demand (D)and supply (S)curves of corn syrups. Figure 35.3 In Figure 35.3, suppose an import quota of 30 gallons of corn syrup is imposed.If the world price per gallon is $4:

The figure given below depicts the negatively sloped demand and positively sloped supply curves of wheat in a country. Figure 35.2 According to Figure 35.2, if the world price per bushel of wheat is $25, how much is the domestic demand?

Economics: The World Around You

Choice, Opportunity Costs, and Specialization

Markets, Demand and Supply, and the Price System

The Market System and the Private and Public Sector

Elasticity: Demand and Supply

National Income Accounting

an Introduction to the Foreign Exchange Market and the Balance of Payments

Consumer Choice

Supply: The Costs of Doing Business

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Profit Maximization

Aggregate Expenditures

Perfect Competition

Income and Expenditures Equilibrium

Monopoly

Fiscal Policy

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Money and Banking

Market Failures, Government Failures, and Rent Seeking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Resource Markets

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

The Labor Market

Capital Markets

Economic Growth

Development Economics

the Land Market and Natural Resources

Aging, Social Security and Health Care

Globalization

Elasticity: Demand and Supply

Income Distribution, Poverty and Government Policy

World Trade Equilibrium

Consumer Choice

International Trade Restrictions

World Trade Equilibrium

Exchange Rates and Financial Links Between Countries

International Trade Restrictions

Supply: the Costs of Doing Business

Exchange Rates and Financial Links Between Countries

Profit Maximization

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Market Failures, Government Failures, and Rent Seeking

Resource Markets

The Labor Market

Capital Markets

The Land Market and Natural Resources

Aging, Social Security and Health Care

Income Distribution, Poverty and Government Policy

World Trade Equilibrium

Exchange Rates and Financial Links Between Countries

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