Question 1

If a tariff is imposed on imports of shrimp into the United States,U.S.consumer surplus from shrimp will ________ and U.S.producer 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 2

Airlines in other countries buy airplanes from Boeing because

Accepted Answer

A) it is illegal to produce airplanes in many other countries. 
B) Boeing's prices are less than what the airlines would pay for planes built in their own country. 
C) trade treaties require such purchases. 
D) these nations must buy something from the United States. 
E) None of the above answers is correct. 
A) it is illegal to produce airplanes in many other countries. 
B) Boeing's prices are less than what the airlines would pay for planes built in their own country. 
C) trade treaties require such purchases. 
D) these nations must buy something from the United States. 
E) None of the above answers is correct.

Question 3

How do exports affect buyers' consumer surplus?

Accepted Answer

Consumer surplus decreases.It

Question 4

What is the dumping argument for protection from international trade?

Accepted Answer

A) Domestic firms must be protected until they gain a comparative advantage. 
B) Any firm necessary in wartime must be protected. 
C) Foreign producers selling below cost to drive domestic firms bankrupt must be stopped. 
D) Domestic jobs must be protected from competition from low-paid foreign workers. 
E) Foreigners selling products in the economy limit the nation's diversity and stability. 
A) Domestic firms must be protected until they gain a comparative advantage. 
B) Any firm necessary in wartime must be protected. 
C) Foreign producers selling below cost to drive domestic firms bankrupt must be stopped. 
D) Domestic jobs must be protected from competition from low-paid foreign workers. 
E) Foreigners selling products in the economy limit the nation's diversity and stability.

Question 5

Country A imports 1,000 cars per month.After imposing a $50 per car tariff,imports fall to 800 cars per month.How much does Country A's government collect in tariff revenue?

Accepted Answer

A) $90,000 
B) $50,000 
C) $40,000 
D) $10,000 
E) $60,000 
A) $90,000 
B) $50,000 
C) $40,000 
D) $10,000 
E) $60,000

Question 6

A tax on a good that is imposed by the importing country is called a

Accepted Answer

A) tariff. 
B) nontariff barrier. 
C) quantitative restriction. 
D) licensing regulation. 
E) trade constraint. 
A) tariff. 
B) nontariff barrier. 
C) quantitative restriction. 
D) licensing regulation. 
E) trade constraint.

Question 7

A nation has a comparative advantage in a good when it has a

Accepted Answer

A) lower absolute cost of producing the good. 
B) higher opportunity cost of producing the good. 
C) lower opportunity cost of producing the good. 
D) higher absolute cost of producing the good. 
E) tariff in place protecting the producers of the good. 
A) lower absolute cost of producing the good. 
B) higher opportunity cost of producing the good. 
C) lower opportunity cost of producing the good. 
D) higher absolute cost of producing the good. 
E) tariff in place protecting the producers of the good.

Question 8

When a nation imports a good,its consumer surplus ________,and its producer surplus ________.

Accepted Answer

A) increases;increases 
B) decreases;decreases 
C) increases;decreases 
D) decreases;increases 
E) does not change;increases 
A) increases;increases 
B) decreases;decreases 
C) increases;decreases 
D) decreases;increases 
E) does not change;increases

Question 9

Goods and services that the United States sells to other nations are called

Accepted Answer

A) exports. 
B) imports. 
C) bartered goods. 
D) exchanges. 
E) world goods. 
A) exports. 
B) imports. 
C) bartered goods. 
D) exchanges. 
E) world goods.

Question 10

A specified maximum amount of the good that may be imported in a given period of time is a

Accepted Answer

A) forcible limit. 
B) quota. 
C) tariff. 
D) sanction. 
E) dumping limit. 
A) forcible limit. 
B) quota. 
C) tariff. 
D) sanction. 
E) dumping limit.

Question 11

-The United States imports television sets from Japan.The table above contains the U.S.demand and U.S.supply schedules for television sets.The world price of a television set is $600 per set.
a.With no trade,what is the domestic price and quantity of television sets?
b.At the world price,what is the quantity of sets demanded in the United States?
c.At the world price,how many sets are produced in the United States?
d.At the world price,how many sets are imported into the United States?
e.What is the opportunity cost of producing the 4-millionth television set in the United States? In Japan?

Accepted Answer

a.In the absence of trade,the price is $

Question 12

Who gains from international trade?

Accepted Answer

A) only the exporting nation 
B) only the importing nation 
C) both the importing and the exporting nations 
D) neither the importing nor the exporting nations 
E) The gain depends on which nation gets to keep the total revenue from the sale. 
A) only the exporting nation 
B) only the importing nation 
C) both the importing and the exporting nations 
D) neither the importing nor the exporting nations 
E) The gain depends on which nation gets to keep the total revenue from the sale.

Question 13

-The figure above shows the U.S.demand and U.S.supply curves for cherries.In the absence of international trade,cherry farmers would receive ________ per pound of cherries.

Accepted Answer

A) $0.50 
B) $1.50 
C) $2.50 
D) $2.00 
E) $1.00 
A) $0.50 
B) $1.50 
C) $2.50 
D) $2.00 
E) $1.00

Question 14

When a nation exports 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 15

-The above figure shows the U.S.market for 1 carat diamonds.With free trade,U.S.production of diamonds is equal to ________ diamonds.When the quota illustrated in the figure is in place,U.S.production is equal to ________ diamonds.

Accepted Answer

A) 100,000;300,000 
B) 100,000;500,000 
C) 300,000;100,000 
D) 300,000;500,000 
E) 900,000;700,000 
A) 100,000;300,000 
B) 100,000;500,000 
C) 300,000;100,000 
D) 300,000;500,000 
E) 900,000;700,000

Question 16

In 2002,President Bush imposed a tariff on imported steel.He did so in response to rent seeking by

Accepted Answer

A) domestic steel consumers. 
B) domestic steel producers. 
C) foreign steel consumers. 
D) foreign steel producers. 
E) foreign politicians. 
A) domestic steel consumers. 
B) domestic steel producers. 
C) foreign steel consumers. 
D) foreign steel producers. 
E) foreign politicians.

Question 17

The ________ are hurt by importing a good.

Accepted Answer

A) domestic consumers of the good 
B) domestic producers of the good 
C) domestic governments 
D) foreign producers of the good 
E) foreign governments 
A) domestic consumers of the good 
B) domestic producers of the good 
C) domestic governments 
D) foreign producers of the good 
E) foreign governments

Question 18

The argument that jobs are lost to free trade is

Accepted Answer

A) totally false because no jobs are lost to free trade. 
B) correct because jobs are lost but foreign countries are helped and we can afford losses. 
C) incorrect because no jobs are lost and new jobs are created by trade. 
D) correct because some jobs are lost but incorrect because new jobs also are created. 
E) true only when tariffs are imposed on the goods being imported. 
A) totally false because no jobs are lost to free trade. 
B) correct because jobs are lost but foreign countries are helped and we can afford losses. 
C) incorrect because no jobs are lost and new jobs are created by trade. 
D) correct because some jobs are lost but incorrect because new jobs also are created. 
E) true only when tariffs are imposed on the goods being imported.

Question 19

Relative to free trade,domestic producers 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 20

When a nation imports a good or service,the nation's consumer surplus ________,its producer surplus ________,and its total surplus ________.

Accepted Answer

A) increases;decreases;increases 
B) increases;decreases;decreases 
C) increases;increases;increases 
D) decreases;decreases;decreases 
E) decreases;decreases;increases 
A) increases;decreases;increases 
B) increases;decreases;decreases 
C) increases;increases;increases 
D) decreases;decreases;decreases 
E) decreases;decreases;increases

If a tariff is imposed on imports of shrimp into the United States,U.S.consumer surplus from shrimp will and U.S.producer surplus from shrimp will .

Airlines in other countries buy airplanes from Boeing because

How do exports affect buyers' consumer surplus?

What is the dumping argument for protection from international trade?

Country A imports 1,000 cars per month.After imposing a $50 per car tariff,imports fall to 800 cars per month.How much does Country A's government collect in tariff revenue?

A tax on a good that is imposed by the importing country is called a

A nation has a comparative advantage in a good when it has a

When a nation imports a good,its consumer surplus ,and its producer surplus .

Goods and services that the United States sells to other nations are called

A specified maximum amount of the good that may be imported in a given period of time is a

Who gains from international trade?

-The figure above shows the U.S.demand and U.S.supply curves for cherries.In the absence of international trade,cherry farmers would receive ________ per pound of cherries.

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

-The above figure shows the U.S.market for 1 carat diamonds.With free trade,U.S.production of diamonds is equal to diamonds.When the quota illustrated in the figure is in place,U.S.production is equal to diamonds.

In 2002,President Bush imposed a tariff on imported steel.He did so in response to rent seeking by

The ________ are hurt by importing a good.

The argument that jobs are lost to free trade is

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

When a nation imports a good or service,the nation's consumer surplus ,its producer surplus ,and its total surplus .

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

If a tariff is imposed on imports of shrimp into the United States,U.S.consumer surplus from shrimp will ________ and U.S.producer surplus from shrimp will ________.

Airlines in other countries buy airplanes from Boeing because

How do exports affect buyers' consumer surplus?

What is the dumping argument for protection from international trade?

Country A imports 1,000 cars per month.After imposing a $50 per car tariff,imports fall to 800 cars per month.How much does Country A's government collect in tariff revenue?

A tax on a good that is imposed by the importing country is called a

A nation has a comparative advantage in a good when it has a

When a nation imports a good,its consumer surplus ________,and its producer surplus ________.

Goods and services that the United States sells to other nations are called

A specified maximum amount of the good that may be imported in a given period of time is a

Who gains from international trade?

-The figure above shows the U.S.demand and U.S.supply curves for cherries.In the absence of international trade,cherry farmers would receive ________ per pound of cherries.

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

-The above figure shows the U.S.market for 1 carat diamonds.With free trade,U.S.production of diamonds is equal to ________ diamonds.When the quota illustrated in the figure is in place,U.S.production is equal to ________ diamonds.

In 2002,President Bush imposed a tariff on imported steel.He did so in response to rent seeking by

The ________ are hurt by importing a good.

The argument that jobs are lost to free trade is

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

When a nation imports a good or service,the nation's consumer surplus ________,its producer surplus ________,and its total surplus ________.

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 a tariff is imposed on imports of shrimp into the United States,U.S.consumer surplus from shrimp will and U.S.producer surplus from shrimp will .

When a nation imports a good,its consumer surplus ,and its producer surplus .

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

-The above figure shows the U.S.market for 1 carat diamonds.With free trade,U.S.production of diamonds is equal to diamonds.When the quota illustrated in the figure is in place,U.S.production is equal to diamonds.

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

When a nation imports a good or service,the nation's consumer surplus ,its producer surplus ,and its total surplus .