Question 1

The world price of a good refers to the quantity of one good exchanged for a unit of another good.​

Accepted Answer

A) True 
 B)False

Question 2

The following graph shows the demand for and the supply of a good in a country.If the world price of the good is $2.00 per unit and an import quota of 50 units per month is imposed,then the decrease in consumer surplus can be represented by the area _____.​ ​
Figure 17.6
​

Accepted Answer

A)  f
B)  i
C)  h
D)  f,g,and h
E)  a,b,c,d,and eF) A) and C)
G) A) and B)

Question 3

Suppose the government of an importing country is considering imposing either a tariff that would result in imports falling to 1 million units per year or an import quota of 1 million units per year.Which of the following would be true?​

Accepted Answer

A)  The domestic price of the imported good will rise higher with the tariff than with the quota.
B)  Consumers in the importing country will be worse off with the quota than with the tariff.
C)  Domestic producers that compete with the imports will be better off with the tariff than with the quota.
D)  The tariff will increase the revenue of the government of the importing country,while the quota will increase the profits of the foreign exporting firms with quota rights.
E)  Tariffs raise the price of a good but quotas do not.F) D) and E)
G) B) and C)

Question 4

The consumption possibilities frontier shows:​

Accepted Answer

A)  a nation's possible combinations of goods available as a result of specialization and exchange.
B)  a nation's opportunity cost of producing different goods for consumption.
C)  possible combinations of goods that residents of a nation consume at different income levels.
D)  the difference between the most that consumers would pay for a good and the actual amount they pay.
E)  a nation's possible combinations of how much of one good exchanges for another.F) B) and D)
G) A) and B)

Question 5

Suppose there is a policy debate over imposing trade restrictions on imported semiconductors in the United States.A congresswoman argues that it is necessary to impose trade restrictions,such as a tariff,on the semiconductor industry to protect workers in the domestic semiconductor industry.The congresswoman claims that without trade protection,there will be layoffs,causing many U.S.workers in the semiconductor industry to be unemployed.She is basing her preference for trade restrictions on the:​

Accepted Answer

A)  infant industry argument.
B)  declining industries argument.
C)  national defense argument.
D)  jobs and income argument.
E)  antidumping argument.F) A) and B)
G) A) and D)

Question 6

The following table shows per-day production data of rice and T-shirts for two countries,Cambria and Bodoni.Based on the table,it can be said that the opportunity cost of 1 T-shirt in Cambria is _____.​ ​
Table 17.1
​

Accepted Answer

A)  4 tons of rice
B)  0.5 ton of rice
C)  0.75 ton of rice
D)  0.025 ton of rice
E)  2 tons of riceF) D) and E)
G) All of the above

Question 7

Differences in resource endowments are differences in:​

Accepted Answer

A)  tariffs charged by each country.
B)  consumption patterns across nations.
C)  production patterns across nations.
D)  the quantity,but not the quality,of resources available in different nations.
E)  the quality and quantity of resources available in different nations.F) A) and D)
G) C) and D)

Question 8

Some industries have argued that since their output is vital for national defense,_____.​

Accepted Answer

A)  they should be entitled to additional trade protection
B)  they should make special deals among themselves and discriminate against outsiders
C)  they are more vulnerable to fiscal deficits
D)  they should be given more time to grow to become competitive
E)  they protect domestic jobs and wage levelsF) B) and C)
G) A) and E)

Question 9

If production is subject to economies of scale,_____.​

Accepted Answer

A)  countries can gain from trade if each nation specializes
B)  the domestic price will be above the world price and the quantity produced will be below the free trade level
C)  higher output levels result in higher average production costs
D)  every consumer gets to buy goods at their market-clearing prices
E)  autarky will be preferred to tradeF) None of the above
G) A) and C)

Question 10

The temporary sale of products in a foreign market at prices below cost to eliminate competitors in that foreign market is referred to as:​

Accepted Answer

A)  rent seeking.
B)  rebating.
C)  sporadic dumping.
D)  predatory dumping.
E)  import substitution.F) D) and E)
G) A) and C)

Question 11

In 2012,exports amounted to about 14 percent of U.S.GDP.​

Accepted Answer

A) True 
 B)False

Question 12

The largest regional trading bloc is the _____.​

Accepted Answer

A)  North American Free Trade Agreement
B)  European Community
C)  Latin American Free Trade Agreement
D)  Asian Free Trade Agreement
E)  East Asian Cooperation CouncilF) B) and E)
G) C) and E)

Question 13

When a country imposes a per-unit tariff on an imported good or service,_____.​

Accepted Answer

A)  the price that domestic consumers pay for the import falls
B)  the quantity of the good or service imported into the country declines
C)  the quantity of the good or service imported into the country increases
D)  the price at which any supplier can sell output in the world market decreases
E)  the quantity of the good or service demanded by the consumers increasesF) A) and E)
G) C) and D)

Question 14

The following image shows the market for wheat for the country of Palatino.SD is the domestic supply of wheat,and DD is the domestic demand for wheat.Suppose the world price of wheat is $9 per bushel.Suppose a specific tariff of $6 is imposed on each bushel of wheat imported.The net welfare loss from the tariff is represented by the area _____.​ ​
Figure 17.4
​
D is the domestic supply of wheat,and DD is the domestic demand for wheat.Suppose the world price of wheat is $9 per bushel.Suppose a specific tariff of $6 is imposed on each bushel of wheat imported.The net welfare loss from the tariff is represented by the area _____.​ ​ Figure 17.4 ​   A) A and C B) I and H C) B and D D) E E) F" class="answers-bank-image d-inline" rel="preload" >

Accepted Answer

A)  A and C
B)  I and H
C)  B and D
D)  E
E)  FF) D) and E)
G) B) and E)

Question 15

In the United States,dumping:​

Accepted Answer

A)  is encouraged because it lowers prices for consumers.
B)  is prohibited by the Trade Agreements Act of 1979.
C)  is encouraged by domestic consumers who benefit from lower prices.
D)  is encouraged by the government because it encourages competition.
E)  was prohibited in 1947 by the provisions of General Agreement on Tariffs and Trade (GATT) .F) A) and B)
G) All of the above

Question 16

Which of the following is a type of trade restriction?​

Accepted Answer

A)  Diseconomies of scale
B)  Autarky
C)  Diminishing marginal returns
D)  Health,safety,or technical standards
E)  Import concessionF) All of the above
G) None of the above

Question 17

Suppose one worker in New Ralph Island can produce 40 walking sticks or 10 boomerangs each hour.The opportunity cost of producing 1 walking stick is _____.​

Accepted Answer

A)  40 boomerangs
B)  0.01 hour of labor
C)  4 boomerangs
D)  0.25 boomerangs
E)  0.5 hours of laborF) A) and B)
G) A) and E)

Question 18

If a country has an absolute advantage in producing a good,_____.​

Accepted Answer

A)  the country is able to produce that good using fewer resources than other countries
B)  the opportunity cost of producing the good is the lowest in that country
C)  the productivity of workers in that country is lower than that in all countries
D)  the country produces as many units of the good as demanded domestically
E)  countries of the same size have the same opportunity cost of producing both goodsF) B) and C)
G) All of the above

Question 19

Countries export products they can produce cheaply in return for products that are unavailable domestically or are cheaper elsewhere.​

Accepted Answer

A) True 
 B)False

Question 20

Domestic producers of goods who compete with cheaper imports benefit from protectionism in the short run.​

Accepted Answer

A) True 
 B)False

Exam 17: International Trade

Domestic producers of goods who compete with cheaper imports benefit from protectionism in the short run.

Correct Answer
verified

The largest regional trading bloc is the _____.

Correct Answer
verified

When a country imposes a per-unit tariff on an imported good or service,_____.

Correct Answer
verified

The world price of a good refers to the quantity of one good exchanged for a unit of another good.

Correct Answer
verified

The following graph shows the demand for and the supply of a good in a country.If the world price of the good is $2.00 per unit and an import quota of 50 units per month is imposed,then the decrease in consumer surplus can be represented by the area _____. Figure 17.6

Correct Answer
verified

The temporary sale of products in a foreign market at prices below cost to eliminate competitors in that foreign market is referred to as:

Correct Answer
verified

The consumption possibilities frontier shows:

Correct Answer
verified

Suppose one worker in New Ralph Island can produce 40 walking sticks or 10 boomerangs each hour.The opportunity cost of producing 1 walking stick is _____.

Correct Answer
verified

Countries export products they can produce cheaply in return for products that are unavailable domestically or are cheaper elsewhere.

Correct Answer
verified

Suppose the government of an importing country is considering imposing either a tariff that would result in imports falling to 1 million units per year or an import quota of 1 million units per year.Which of the following would be true?

Correct Answer
verified

The following table shows per-day production data of rice and T-shirts for two countries,Cambria and Bodoni.Based on the table,it can be said that the opportunity cost of 1 T-shirt in Cambria is _____. Table 17.1

Correct Answer
verified

In 2012,exports amounted to about 14 percent of U.S.GDP.

Correct Answer
verified

Some industries have argued that since their output is vital for national defense,_____.

Correct Answer
verified

Differences in resource endowments are differences in:

Correct Answer
verified

Correct Answer
verified

Which of the following is a type of trade restriction?

Correct Answer
verified

In the United States,dumping:

Correct Answer
verified

If a country has an absolute advantage in producing a good,_____.

Correct Answer
verified

If production is subject to economies of scale,_____.

Correct Answer
verified

Correct Answer
verified

Exam 17: International Trade

Domestic producers of goods who compete with cheaper imports benefit from protectionism in the short run.​

Correct AnswerverifiedShow Answer

The largest regional trading bloc is the _____.​

Correct AnswerverifiedShow Answer

When a country imposes a per-unit tariff on an imported good or service,_____.​

Correct AnswerverifiedShow Answer

The world price of a good refers to the quantity of one good exchanged for a unit of another good.​

Correct AnswerverifiedShow Answer

The following graph shows the demand for and the supply of a good in a country.If the world price of the good is $2.00 per unit and an import quota of 50 units per month is imposed,then the decrease in consumer surplus can be represented by the area _____.​ ​ Figure 17.6 ​

Correct AnswerverifiedShow Answer

The temporary sale of products in a foreign market at prices below cost to eliminate competitors in that foreign market is referred to as:​

Correct AnswerverifiedShow Answer

The consumption possibilities frontier shows:​

Correct AnswerverifiedShow Answer

Suppose one worker in New Ralph Island can produce 40 walking sticks or 10 boomerangs each hour.The opportunity cost of producing 1 walking stick is _____.​

Correct AnswerverifiedShow Answer

Countries export products they can produce cheaply in return for products that are unavailable domestically or are cheaper elsewhere.​

Correct AnswerverifiedShow Answer

Suppose the government of an importing country is considering imposing either a tariff that would result in imports falling to 1 million units per year or an import quota of 1 million units per year.Which of the following would be true?​

Correct AnswerverifiedShow Answer

The following table shows per-day production data of rice and T-shirts for two countries,Cambria and Bodoni.Based on the table,it can be said that the opportunity cost of 1 T-shirt in Cambria is _____.​ ​ Table 17.1 ​

Correct AnswerverifiedShow Answer

In 2012,exports amounted to about 14 percent of U.S.GDP.​

Correct AnswerverifiedShow Answer

Some industries have argued that since their output is vital for national defense,_____.​

Correct AnswerverifiedShow Answer

Differences in resource endowments are differences in:​

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a type of trade restriction?​

Correct AnswerverifiedShow Answer

In the United States,dumping:​

Correct AnswerverifiedShow Answer

If a country has an absolute advantage in producing a good,_____.​

Correct AnswerverifiedShow Answer

If production is subject to economies of scale,_____.​

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Domestic producers of goods who compete with cheaper imports benefit from protectionism in the short run.

Correct Answer
verified

The largest regional trading bloc is the _____.

Correct Answer
verified

When a country imposes a per-unit tariff on an imported good or service,_____.

Correct Answer
verified

The world price of a good refers to the quantity of one good exchanged for a unit of another good.

Correct Answer
verified

The following graph shows the demand for and the supply of a good in a country.If the world price of the good is $2.00 per unit and an import quota of 50 units per month is imposed,then the decrease in consumer surplus can be represented by the area _____. Figure 17.6

Correct Answer
verified

The temporary sale of products in a foreign market at prices below cost to eliminate competitors in that foreign market is referred to as:

Correct Answer
verified

The consumption possibilities frontier shows:

Correct Answer
verified

Suppose one worker in New Ralph Island can produce 40 walking sticks or 10 boomerangs each hour.The opportunity cost of producing 1 walking stick is _____.

Correct Answer
verified

Countries export products they can produce cheaply in return for products that are unavailable domestically or are cheaper elsewhere.

Correct Answer
verified

Suppose the government of an importing country is considering imposing either a tariff that would result in imports falling to 1 million units per year or an import quota of 1 million units per year.Which of the following would be true?

Correct Answer
verified

The following table shows per-day production data of rice and T-shirts for two countries,Cambria and Bodoni.Based on the table,it can be said that the opportunity cost of 1 T-shirt in Cambria is _____. Table 17.1

Correct Answer
verified

In 2012,exports amounted to about 14 percent of U.S.GDP.

Correct Answer
verified

Some industries have argued that since their output is vital for national defense,_____.

Correct Answer
verified

Differences in resource endowments are differences in:

Correct Answer
verified

Correct Answer
verified

Which of the following is a type of trade restriction?

Correct Answer
verified

In the United States,dumping:

Correct Answer
verified

If a country has an absolute advantage in producing a good,_____.

Correct Answer
verified

If production is subject to economies of scale,_____.

Correct Answer
verified

Correct Answer
verified