Question 1

What is a major reason international trade is restricted?

Accepted Answer

A) rent seeking 
B) to allow competition with cheap foreign labor 
C) to save jobs 
D) to prevent dumping 
E) to eliminate monopolies 
A) rent seeking 
B) to allow competition with cheap foreign labor 
C) to save jobs 
D) to prevent dumping 
E) to eliminate monopolies

Question 2

Based on the figure above,as a result of international trade,producer surplus

Accepted Answer

A) increases by $15 billion. 
B) decreases by $15 billion. 
C) increases by $27.5 billion. 
D) decreases by $12.5 billion. 
E) remains unchanged. 
A) increases by $15 billion. 
B) decreases by $15 billion. 
C) increases by $27.5 billion. 
D) decreases by $12.5 billion. 
E) remains unchanged.

Question 3

After a nation starts importing a good from overseas,the domestic price of the good

Accepted Answer

A) falls. 
B) stays the same. 
C) rises. 
D) might change,but more information about what the country exports is needed to determine if the price rises,falls,or does not change. 
E) might change,but more information about what else the country imports is needed to determine if the price rises,falls,or does not change. 
A) falls. 
B) stays the same. 
C) rises. 
D) might change,but more information about what the country exports is needed to determine if the price rises,falls,or does not change. 
E) might change,but more information about what else the country imports is needed to determine if the price rises,falls,or does not change.

Question 4

The average U.S.tariff was highest in the

Accepted Answer

A) 1930s. 
B) 1940s. 
C) 1970s. 
D) 1980s. 
E) 1990s. 
A) 1930s. 
B) 1940s. 
C) 1970s. 
D) 1980s. 
E) 1990s.

Question 5

Which of the following is NOT a major argument for restricting international trade?

Accepted Answer

A) the promotion of dumping in America 
B) the national security argument 
C) the infant-industry argument 
D) the prevention of dumping argument 
E) saves U.S.jobs argument 
A) the promotion of dumping in America 
B) the national security argument 
C) the infant-industry argument 
D) the prevention of dumping argument 
E) saves U.S.jobs argument

Question 6

Which of the following parties benefits from an import quota but not from a tariff?

Accepted Answer

A) the domestic government 
B) domestic producers 
C) domestic consumers 
D) the person with the right to import the good 
E) the foreign government 
A) the domestic government 
B) domestic producers 
C) domestic consumers 
D) the person with the right to import the good 
E) the foreign government

Question 7

Looking at the average tariff rate in the United States since 1930,we see that

Accepted Answer

A) at first tariffs declined,but have recently risen. 
B) tariffs have trended downward for most of the period. 
C) tariff levels have remained high,at over 50 percent throughout the period. 
D) while we talk about free trade,tariff levels have risen over the last 30 years. 
E) tariffs were made illegal in the United States in 1955. 
A) at first tariffs declined,but have recently risen. 
B) tariffs have trended downward for most of the period. 
C) tariff levels have remained high,at over 50 percent throughout the period. 
D) while we talk about free trade,tariff levels have risen over the last 30 years. 
E) tariffs were made illegal in the United States in 1955.

Question 8

Since the mid-1970s,the average U.S.tariff rate is

Accepted Answer

A) less than 5 percent. 
B) between 6 percent and 15 percent. 
C) between 16 percent and 25 percent. 
D) between 26 percent and 35 percent. 
E) larger than 36 percent. 
A) less than 5 percent. 
B) between 6 percent and 15 percent. 
C) between 16 percent and 25 percent. 
D) between 26 percent and 35 percent. 
E) larger than 36 percent.

Question 9

If an import quota is imposed on imports of shrimp into the United States,U.S.producer surplus from shrimp will ________ and U.S.total surplus from shrimp will ________.

Accepted Answer

A) increase;increase 
B) increase;decrease 
C) decrease;increase 
D) decrease;decrease 
E) increase;not change 
A) increase;increase 
B) increase;decrease 
C) decrease;increase 
D) decrease;decrease 
E) increase;not change

Question 10

Relative to free trade,domestic consumers of a good are ________ off with a tariff because of the ________.

Accepted Answer

A) better;higher price and greater quantity sold 
B) better;higher price and smaller quantity sold 
C) better;lower price and greater quantity sold 
D) worse;lower price and smaller quantity sold 
E) worse;higher price and greater quantity sold 
A) better;higher price and greater quantity sold 
B) better;higher price and smaller quantity sold 
C) better;lower price and greater quantity sold 
D) worse;lower price and smaller quantity sold 
E) worse;higher price and greater quantity sold

Question 11

If the United States imports purses,then the quantity of purses produced in the United States will ________ and the quantity of purses purchased by consumers in the United States will ________.

Accepted Answer

A) increase;increase 
B) increase;decrease 
C) decrease;increase 
D) decrease;decrease 
E) not change;increase 
A) increase;increase 
B) increase;decrease 
C) decrease;increase 
D) decrease;decrease 
E) not change;increase

Question 12

When the United States imports goods from the rest of the world,which of the following parties is harmed?
I.domestic producers of the good
Ii.domestic consumers of the good
Iii.foreign producers of the good

Accepted Answer

A) i only 
B) ii only 
C) iii only 
D) i and iii 
E) i,ii,and iii 
A) i only 
B) ii only 
C) iii only 
D) i and iii 
E) i,ii,and iii

Question 13

Of the following,who gains from a tariff?

Accepted Answer

A) the government of the importing country 
B) the government of the exporting country 
C) consumers in the importing country 
D) producers in the exporting country 
E) both the government of the exporting country and the government of the importing country 
A) the government of the importing country 
B) the government of the exporting country 
C) consumers in the importing country 
D) producers in the exporting country 
E) both the government of the exporting country and the government of the importing country

Question 14

-The above figure shows the U.S.market for 1 carat diamonds.With free trade,Americans buy ________ diamonds and pay a price of ________ per diamond.

Accepted Answer

A) 500,000;$4,000 
B) 300,000;$3,000 
C) 700,000;$3,000 
D) 300,000;$4,000 
E) 900,000;$2,000 
A) 500,000;$4,000 
B) 300,000;$3,000 
C) 700,000;$3,000 
D) 300,000;$4,000 
E) 900,000;$2,000

Question 15

Of the following,who is harmed by a tariff?

Accepted Answer

A) domestic buyers of the good or service 
B) the overall domestic economy 
C) the foreign exporter of the good or service 
D) domestic producers of the good or service 
E) Both answers A and B are correct. 
A) domestic buyers of the good or service 
B) the overall domestic economy 
C) the foreign exporter of the good or service 
D) domestic producers of the good or service 
E) Both answers A and B are correct.

Question 16

Because the United States has ________ advantage compared to China in producing airplanes,China can buy airplanes from the United States at a ________ opportunity cost than that at which China can produce them.

Accepted Answer

A) comparative;lower 
B) comparative;higher 
C) absolute;lower 
D) absolute;higher 
E) None of the above because China will produce airplanes and sell them to the United States. 
A) comparative;lower 
B) comparative;higher 
C) absolute;lower 
D) absolute;higher 
E) None of the above because China will produce airplanes and sell them to the United States.

Question 17

The figure above shows the U.S.market for T-shirts,where SUS is the domestic supply curve and DUS is the domestic demand curve.The United States trades freely with the rest of the world.The world price of a T-shirt is $5.
-In the figure above,with international trade U.S.consumers buy ________ million T-shirts per year at ________ per T-shirt.

Accepted Answer

A) 60;$5 
B) 40;$8 
C) 20;$5 
D) 40;$5 
E) 60;$11 
A) 60;$5 
B) 40;$8 
C) 20;$5 
D) 40;$5 
E) 60;$11

Question 18

Of the following,________ account(s)for the largest share of imports into the United States.

Accepted Answer

A) food and drinks 
B) clothing and footwear 
C) crude oil 
D) computers 
E) chemicals 
A) food and drinks 
B) clothing and footwear 
C) crude oil 
D) computers 
E) chemicals

Question 19

When a nation imports a good,its ________ surplus decreases and its ________ surplus increases.

Accepted Answer

A) consumer;producer 
B) consumer;consumer 
C) producer;producer 
D) producer;consumer 
E) total;consumer 
A) consumer;producer 
B) consumer;consumer 
C) producer;producer 
D) producer;consumer 
E) total;consumer

Question 20

U.S.tariffs on Canadian lumber have led to ________ production of lumber within the United States.

Accepted Answer

A) no change in 
B) an increase in 
C) the elimination of 
D) a decrease in 
E) making illegal the 
A) no change in 
B) an increase in 
C) the elimination of 
D) a decrease in 
E) making illegal the

What is a major reason international trade is restricted?

Based on the figure above,as a result of international trade,producer surplus

After a nation starts importing a good from overseas,the domestic price of the good

The average U.S.tariff was highest in the

Which of the following is NOT a major argument for restricting international trade?

Which of the following parties benefits from an import quota but not from a tariff?

Looking at the average tariff rate in the United States since 1930,we see that

Since the mid-1970s,the average U.S.tariff rate is

If an import quota is imposed on imports of shrimp into the United States,U.S.producer surplus from shrimp will and U.S.total surplus from shrimp will .

Relative to free trade,domestic consumers of a good are off with a tariff because of the .

If the United States imports purses,then the quantity of purses produced in the United States will and the quantity of purses purchased by consumers in the United States will .

When the United States imports goods from the rest of the world,which of the following parties is harmed? I.domestic producers of the good Ii.domestic consumers of the good Iii.foreign producers of the good

Of the following,who gains from a tariff?

-The above figure shows the U.S.market for 1 carat diamonds.With free trade,Americans buy diamonds and pay a price of per diamond.

Of the following,who is harmed by a tariff?

Because the United States has advantage compared to China in producing airplanes,China can buy airplanes from the United States at a opportunity cost than that at which China can produce them.

Of the following,________ account(s)for the largest share of imports into the United States.

When a nation imports a good,its surplus decreases and its surplus increases.

U.S.tariffs on Canadian lumber have led to ________ production of lumber within the United States.

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 8: Global Markets in Action

What is a major reason international trade is restricted?

Based on the figure above,as a result of international trade,producer surplus

After a nation starts importing a good from overseas,the domestic price of the good

The average U.S.tariff was highest in the

Which of the following is NOT a major argument for restricting international trade?

Which of the following parties benefits from an import quota but not from a tariff?

Looking at the average tariff rate in the United States since 1930,we see that

Since the mid-1970s,the average U.S.tariff rate is

If an import quota is imposed on imports of shrimp into the United States,U.S.producer surplus from shrimp will ________ and U.S.total surplus from shrimp will ________.

Relative to free trade,domestic consumers of a good are ________ off with a tariff because of the ________.

If the United States imports purses,then the quantity of purses produced in the United States will ________ and the quantity of purses purchased by consumers in the United States will ________.

When the United States imports goods from the rest of the world,which of the following parties is harmed? I.domestic producers of the good Ii.domestic consumers of the good Iii.foreign producers of the good

Of the following,who gains from a tariff?

-The above figure shows the U.S.market for 1 carat diamonds.With free trade,Americans buy ________ diamonds and pay a price of ________ per diamond.

Of the following,who is harmed by a tariff?

Because the United States has ________ advantage compared to China in producing airplanes,China can buy airplanes from the United States at a ________ opportunity cost than that at which China can produce them.

Of the following,________ account(s)for the largest share of imports into the United States.

When a nation imports a good,its ________ surplus decreases and its ________ surplus increases.

U.S.tariffs on Canadian lumber have led to ________ production of lumber within the United States.

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

If an import quota is imposed on imports of shrimp into the United States,U.S.producer surplus from shrimp will and U.S.total surplus from shrimp will .

Relative to free trade,domestic consumers of a good are off with a tariff because of the .

If the United States imports purses,then the quantity of purses produced in the United States will and the quantity of purses purchased by consumers in the United States will .

-The above figure shows the U.S.market for 1 carat diamonds.With free trade,Americans buy diamonds and pay a price of per diamond.

Because the United States has advantage compared to China in producing airplanes,China can buy airplanes from the United States at a opportunity cost than that at which China can produce them.

When a nation imports a good,its surplus decreases and its surplus increases.