Question 1

An expansionary monetary policy in the United States should

Accepted Answer

A) decrease the foreign currency price of U.S.exports. 
B) cause the dollar to appreciate. 
C) decrease the dollar price of imports. 
D) decrease net exports. 
A) decrease the foreign currency price of U.S.exports. 
B) cause the dollar to appreciate. 
C) decrease the dollar price of imports. 
D) decrease net exports.

Question 2

One of the main sources of comparative advantage is internal economies.

Accepted Answer

A) True 
 B)False

Question 3

A tariff

Accepted Answer

A) makes domestic consumers worse off. 
B) makes both domestic producers and consumers worse off. 
C) makes everyone better off. 
D) makes domestic producers worse off. 
A) makes domestic consumers worse off. 
B) makes both domestic producers and consumers worse off. 
C) makes everyone better off. 
D) makes domestic producers worse off.

Question 4

Which of the following would cause the dollar to appreciate?

Accepted Answer

A) an increase in the demand for dollars 
B) a decrease in the demand for dollars 
C) an increase in the supply of dollars 
D) an increase in the demand for imports from foreign countries 
A) an increase in the demand for dollars 
B) a decrease in the demand for dollars 
C) an increase in the supply of dollars 
D) an increase in the demand for imports from foreign countries

Question 5

Figure 19-3   Since 1953 the United States has imposed a quota to limit the imports of peanuts.Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.Without the quota,the domestic price of peanuts equals the world price which is $2.00 per pound.What is the quantity of peanuts supplied by domestic producers in the absence of a quota?

Accepted Answer

A) 10 million pounds 
B) 28 million pounds 
C) 30 million pounds 
D) 40 million pounds 
A) 10 million pounds 
B) 28 million pounds 
C) 30 million pounds 
D) 40 million pounds

Question 6

One reason a country does not specialize completely in production is that not all goods and services are traded internationally.

Accepted Answer

A) True 
 B)False

Question 7

The intention of the "Buy American" provision in the 2009 stimulus bill was to

Accepted Answer

A) increase jobs in the United States. 
B) prevent foreign firms from dumping product in the United States. 
C) insure that products used to build roads and bridges meet U.S.quality and safety standards. 
D) save the government money by restricting the sale of more expensive foreign-made products. 
A) increase jobs in the United States. 
B) prevent foreign firms from dumping product in the United States. 
C) insure that products used to build roads and bridges meet U.S.quality and safety standards. 
D) save the government money by restricting the sale of more expensive foreign-made products.

Question 8

An economic principle that explains why countries produce different goods and services is

Accepted Answer

A) absolute advantage. 
B) trade as a percentage of GDP. 
C) comparative advantage. 
D) NAFTA. 
A) absolute advantage. 
B) trade as a percentage of GDP. 
C) comparative advantage. 
D) NAFTA.

Question 9

The ratio at which a country can trade its exports for imports from other countries is called

Accepted Answer

A) a trade barrier. 
B) the terms of trade. 
C) autarky. 
D) a free trade agreement. 
A) a trade barrier. 
B) the terms of trade. 
C) autarky. 
D) a free trade agreement.

Question 10

Figure 19-3   Since 1953 the United States has imposed a quota to limit the imports of peanuts.Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.With a quota in place,what is the quantity consumed in the domestic market and what portion of this is supplied by domestic producers?

Accepted Answer

A) Domestic consumption equals 28 million pounds of which 18 million pounds are produced by domestic producers. 
B) Domestic consumption equals 40 million pounds of which 22 million pounds are produced by domestic producers. 
C) Domestic consumption equals 34 million pounds of which 16 million pounds are produced by domestic producers. 
D) Domestic consumption equals 34 million pounds of which 18 million pounds are produced by domestic producers. 
A) Domestic consumption equals 28 million pounds of which 18 million pounds are produced by domestic producers. 
B) Domestic consumption equals 40 million pounds of which 22 million pounds are produced by domestic producers. 
C) Domestic consumption equals 34 million pounds of which 16 million pounds are produced by domestic producers. 
D) Domestic consumption equals 34 million pounds of which 18 million pounds are produced by domestic producers.

Question 11

If the opportunity cost of production for two goods is different between two countries ,then

Accepted Answer

A) trade cannot benefit either country. 
B) only one country can be made better off by trade. 
C) mutually beneficial trade is possible. 
D) trade will only benefit both countries if one can lower its opportunity costs. 
A) trade cannot benefit either country. 
B) only one country can be made better off by trade. 
C) mutually beneficial trade is possible. 
D) trade will only benefit both countries if one can lower its opportunity costs.

Question 12

In the 1930s,the United States charged an average tariff rate ________.Today,the rate is ________.

Accepted Answer

A) of 100 percent;20 percent 
B) above 50 percent;less than 2 percent 
C) of less than 10 percent;over 40 percent 
D) of 17 percent;33 percent 
A) of 100 percent;20 percent 
B) above 50 percent;less than 2 percent 
C) of less than 10 percent;over 40 percent 
D) of 17 percent;33 percent

Question 13

Figure 19-3   Since 1953 the United States has imposed a quota to limit the imports of peanuts.Figure 19-3 illustrates the impact of the quota.
-Refer to Figure 19-3.If there was no quota,how many pounds of peanuts would domestic consumers purchase and what quantity would be imported?

Accepted Answer

A) 28 million pounds of which 18 million pounds would be imported 
B) 40 million pounds of which 12 million pounds would be imported 
C) 40 million pounds of which 30 million pounds would be imported 
D) 40 million pounds all of which would be imported 
A) 28 million pounds of which 18 million pounds would be imported 
B) 40 million pounds of which 12 million pounds would be imported 
C) 40 million pounds of which 30 million pounds would be imported 
D) 40 million pounds all of which would be imported

Question 14

Figure 19-2   Suppose the U.S.government imposes a $0.40 per pound tariff on rice imports.Figure 19-2 shows the impact of this tariff.
-Refer to Figure 19-2.Without the tariff in place,the United States produces

Accepted Answer

A) 9 million pounds of rice. 
B) 15 million pounds of rice. 
C) 31 million pounds of rice. 
D) 42 million pounds of rice. 
A) 9 million pounds of rice. 
B) 15 million pounds of rice. 
C) 31 million pounds of rice. 
D) 42 million pounds of rice.

Question 15

If a country has a fixed exchange rate,

Accepted Answer

A) the equilibrium exchange rate in that market does not respond to changes in supply and demand for currency. 
B) central banks have more control over real GDP in the economy. 
C) central banks must buy and sell their holdings of currencies to maintain a given exchange rate. 
D) the exchange rate is allowed to fluctuate in response to changes in the supply and demand for currency. 
A) the equilibrium exchange rate in that market does not respond to changes in supply and demand for currency. 
B) central banks have more control over real GDP in the economy. 
C) central banks must buy and sell their holdings of currencies to maintain a given exchange rate. 
D) the exchange rate is allowed to fluctuate in response to changes in the supply and demand for currency.

Question 16

When the market value of the dollar rises relative to other currencies around the world,we say that

Accepted Answer

A) the dollar has appreciated. 
B) the dollar has depreciated. 
C) the demand for dollars has increased. 
D) the supply of dollars has increased. 
A) the dollar has appreciated. 
B) the dollar has depreciated. 
C) the demand for dollars has increased. 
D) the supply of dollars has increased.

Question 17

Figure 19-6  
-Refer to Figure 19-6.The French fall in love with California wines and triple their purchases of this beverage.Assuming all else remains constant,this would be represented as a movement from ________.

Accepted Answer

A) B to A 
B) C to D 
C) B to C 
D) A to D 
E) A to B 
A) B to A 
B) C to D 
C) B to C 
D) A to D 
E) A to B

Question 18

In 1995 ________,which was established in 1948,was replaced by ________.

Accepted Answer

A) the GATT;the WTO 
B) the WTO;NAFTA 
C) the Smoot-Hawley Tariff;the GATT 
D) NAFTA;the Smoot-Hawley Tariff 
A) the GATT;the WTO 
B) the WTO;NAFTA 
C) the Smoot-Hawley Tariff;the GATT 
D) NAFTA;the Smoot-Hawley Tariff

Question 19

Today,the United States charged an average tariff rate

Accepted Answer

A) that is more than its average tariff rate in 1930. 
B) which is greater than any other high-income country. 
C) of less than 2 percent. 
D) that exceeds 50 percent. 
A) that is more than its average tariff rate in 1930. 
B) which is greater than any other high-income country. 
C) of less than 2 percent. 
D) that exceeds 50 percent.

Question 20

________ refers to reductions in a firm's costs that result from an increase in the size of an industry.

Accepted Answer

A) Internal economies 
B) External economies 
C) Autarkial dominance 
D) Streamlining 
A) Internal economies 
B) External economies 
C) Autarkial dominance 
D) Streamlining

An expansionary monetary policy in the United States should

One of the main sources of comparative advantage is internal economies.

A tariff

Which of the following would cause the dollar to appreciate?

One reason a country does not specialize completely in production is that not all goods and services are traded internationally.

The intention of the "Buy American" provision in the 2009 stimulus bill was to

An economic principle that explains why countries produce different goods and services is

The ratio at which a country can trade its exports for imports from other countries is called

Figure 19-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts.Figure 19-3 illustrates the impact of the quota. -Refer to Figure 19-3.With a quota in place,what is the quantity consumed in the domestic market and what portion of this is supplied by domestic producers?

If the opportunity cost of production for two goods is different between two countries ,then

In the 1930s,the United States charged an average tariff rate .Today,the rate is .

Figure 19-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts.Figure 19-3 illustrates the impact of the quota. -Refer to Figure 19-3.If there was no quota,how many pounds of peanuts would domestic consumers purchase and what quantity would be imported?

Figure 19-2 Suppose the U.S.government imposes a $0.40 per pound tariff on rice imports.Figure 19-2 shows the impact of this tariff. -Refer to Figure 19-2.Without the tariff in place,the United States produces

If a country has a fixed exchange rate,

When the market value of the dollar rises relative to other currencies around the world,we say that

Figure 19-6 -Refer to Figure 19-6.The French fall in love with California wines and triple their purchases of this beverage.Assuming all else remains constant,this would be represented as a movement from ________.

In 1995 ,which was established in 1948,was replaced by .

Today,the United States charged an average tariff rate

________ refers to reductions in a firm's costs that result from an increase in the size of an industry.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Filters

Exam 19: Comparative Advantage,international Trade,and Exchange Rates

An expansionary monetary policy in the United States should

One of the main sources of comparative advantage is internal economies.

A tariff

Which of the following would cause the dollar to appreciate?

One reason a country does not specialize completely in production is that not all goods and services are traded internationally.

The intention of the "Buy American" provision in the 2009 stimulus bill was to

An economic principle that explains why countries produce different goods and services is

The ratio at which a country can trade its exports for imports from other countries is called

Figure 19-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts.Figure 19-3 illustrates the impact of the quota. -Refer to Figure 19-3.With a quota in place,what is the quantity consumed in the domestic market and what portion of this is supplied by domestic producers?

If the opportunity cost of production for two goods is different between two countries ,then

In the 1930s,the United States charged an average tariff rate ________.Today,the rate is ________.

Figure 19-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts.Figure 19-3 illustrates the impact of the quota. -Refer to Figure 19-3.If there was no quota,how many pounds of peanuts would domestic consumers purchase and what quantity would be imported?

Figure 19-2 Suppose the U.S.government imposes a $0.40 per pound tariff on rice imports.Figure 19-2 shows the impact of this tariff. -Refer to Figure 19-2.Without the tariff in place,the United States produces

If a country has a fixed exchange rate,

When the market value of the dollar rises relative to other currencies around the world,we say that

Figure 19-6 -Refer to Figure 19-6.The French fall in love with California wines and triple their purchases of this beverage.Assuming all else remains constant,this would be represented as a movement from ________.

In 1995 ________,which was established in 1948,was replaced by ________.

Today,the United States charged an average tariff rate

________ refers to reductions in a firm's costs that result from an increase in the size of an industry.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Filters

In the 1930s,the United States charged an average tariff rate .Today,the rate is .

In 1995 ,which was established in 1948,was replaced by .