Question 1

Use the following table for Country X to answer the question below. Column 1 of the table is the price of a product. Column 2 is the quantity demanded domestically (Qdd)  and Column 3 is the quantity supplied domestically (Qsd) . dd)  and Column 3 is the quantity supplied domestically (Qsd) .   Refer to the table above. If the world price is $5.00, there will be: A)  A domestic surplus of 100 units that will be exported B)  A domestic shortage of 100 units that will be imported C)  A domestic surplus of 200 units that will be exported D)  Neither a domestic surplus nor a shortage" class="answers-bank-image d-inline" rel="preload" > Refer to the table above. If the world price is $5.00, there will be:

Accepted Answer

A)   A domestic surplus of 100 units that will be exported
B)   A domestic shortage of 100 units that will be imported
C)   A domestic surplus of 200 units that will be exported
D)   Neither a domestic surplus nor a shortageE) A) and D)
F) None of the above

Question 2

An excise tax on imported items is known as a(n) :

Accepted Answer

A)   Quota
B)   Tariff
C)   Export restriction
D)   Price ceilingE) None of the above
F) All of the above

Question 3

Which country is the United States' largest trading partner in terms of volume of trade?

Accepted Answer

A)   Mexico
B)   Japan
C)   China
D)   CanadaE) A) and C)
F) B) and D)

Question 4

The table below shows labor-productivity figures in two countries facing constant costs:  Refer to the table above. Based on the data provided, it can be deduced that:

Accepted Answer

A)   Country A has the absolute advantage in producing both meat and houses
B)   Country B has the absolute advantage in producing both meat and houses
C)   Country A has a comparative advantage in producing both meat and houses
D)   Country B has a comparative advantage in producing both meat and housesE) A) and B)
F) None of the above

Question 5

Refer to the table above for a certain product's market in Econland. If the world price of the product were $6 and a tariff of $1 per unit were applied to imports of the product, then the total revenue (after tariff)  going to domestic producers would be:

Accepted Answer

A)   $11,200, and the total revenue (after tariff)  going to foreign producers would be $2,800
B)   $11,200, and the total revenue (after tariff)  going to foreign producers would be $2,400
C)   $8,400, and the total revenue (after tariff)  going to foreign producers would be $2,800
D)   $13,200, and the total revenue (after tariff)  going to foreign producers would be $2,400E) B) and D)
F) A) and B)

Question 6

Suppose the world economy is composed of just two countries: Italy and Greece. Each can produce steel or chemicals, but at different levels of economic efficiency. The production possibilities curves for the two countries are shown in the graphs below.  Refer to the graphs and information above. It can be deduced that:

Accepted Answer

A)   Greece has a comparative advantage in chemicals
B)   Greece has the absolute advantage in both products
C)   Italy has a comparative advantage in chemicals
D)   It is more costly in terms of resources to produce steel in ItalyE) A) and C)
F) C) and D)

Question 7

Which of the following is a likely result of imposing tariffs to increase domestic employment?

Accepted Answer

A)   A decrease in consumer prices
B)   A decrease in the tariff rates of foreign nations
C)   An increase in the number of jobs
D)   An increase in the possibility of retaliatory tariffsE) All of the above
F) A) and B)

Question 8

If Countries A and B produce only either rubber bands or paper clips, their maximum outputs are shown in the production possibilities schedules below:  In country A the opportunity cost of 1 paper clip is:

Accepted Answer

A)   2 rubber bands
B)   1 rubber band
C)   1/2 rubber band
D)   1/4 rubber bandE) A) and C)
F) None of the above

Question 9

A maximum limit set on the amount of a specific good that may be imported into a country over a given period of time is called a:

Accepted Answer

A)   Tariff
B)   Quota
C)   Nontariff barrier
D)   Voluntary export restrictionE) None of the above
F) A) and D)

Question 10

The NAFTA established a free-trade area and eliminated trade barriers between:

Accepted Answer

A)   The U.S. and Canada only
B)   The U.S., Mexico, and China
C)   The U.S., Mexico, and Canada
D)   The U.S., China, and CanadaE) A) and B)
F) A) and C)

Question 11

In Germany, one worker can produce either one cuckoo clock or one beer mug. In Taiwan, one worker can produce either two cuckoo clocks or three beer mugs. Who has the comparative advantage in each good?

Accepted Answer

A)   Taiwan in both goods
B)   Taiwan in clocks and Germany in mugs
C)   Germany in clocks and Taiwan in mugs
D)   Germany in both goodsE) All of the above
F) A) and C)

Question 12

When a nation starts opening up to international trade, it will see falling prices for:

Accepted Answer

A)   Goods that it exports
B)   Goods that it imports
C)   Goods that it has a comparative advantage in
D)   All goods tradedE) B) and C)
F) A) and D)

Question 13

A tariff is a:

Accepted Answer

A)   Tax
B)   Price ceiling
C)   Quantity limit
D)   SubsidyE) A) and B)
F) A) and C)

Question 14

When tariffs on imported products are removed by a nation, it will result in:

Accepted Answer

A)   Higher prices and lower quantities consumed in that nation
B)   Higher prices and higher quantities consumed in that nation
C)   Lower prices and lower quantities consumed in that nation
D)   Lower prices and higher quantities consumed in that nationE) B) and C)
F) A) and D)

Question 15

Which of the following product-groups is a leading export of the United States?

Accepted Answer

A)   Home appliances
B)   Metals
C)   Agricultural products
D)   ComputersE) A) and D)
F) All of the above

Question 16

With constant costs in production, specialization tends to proceed to complete-specialization; but with increasing costs, specialization will not be complete.

Accepted Answer

A) True 
 B)False

Question 17

If the world price of a product rises relative to the domestic price in a trading nation, then for that product:

Accepted Answer

A)   Exports and imports will increase
B)   Exports and imports will decrease
C)   Exports will increase and imports will decrease
D)   Imports will increase and exports will decreaseE) A) and C)
F) All of the above

Question 18

Which of the following is a valid counterargument to a call for higher tariffs "to save U.S. jobs"?

Accepted Answer

A)   The need to protect U.S. workers from the dumping of foreign products
B)   Strategic trade policy calls for equal treatment of all trading nations so that they will have the same competitive conditions
C)   U.S. firms and workers must be protected from the ruinous competition of nations where wages for workers are low
D)   Imports may eliminate some U.S. jobs, but they create others, so they may have little or no effect on employmentE) C) and D)
F) B) and C)

Question 19

One main point of Frederic Bastiat's satire is that:

Accepted Answer

A)   Employment and jobs is the single most important measure of the standard of living
B)   We should not try to produce what we can get from others at a lower cost
C)   Some industries may reasonably require protection in order to grow
D)   Exporting is always a worthwhile activity to be supported and enhancedE) B) and D)
F) A) and B)

Question 20

In which of the following countries did exports account for the biggest percent of GDP in 2011?

Accepted Answer

A)   Japan
B)   United States
C)   Netherlands
D)   GermanyE) B) and C)
F) C) and D)

Exam 20: International Trade

Which country is the United States' largest trading partner in terms of volume of trade?

Correct Answer
verified

If Countries A and B produce only either rubber bands or paper clips, their maximum outputs are shown in the production possibilities schedules below: In country A the opportunity cost of 1 paper clip is:

Correct Answer
verified

An excise tax on imported items is known as a(n) :

Correct Answer
verified

The NAFTA established a free-trade area and eliminated trade barriers between:

Correct Answer
verified

If the world price of a product rises relative to the domestic price in a trading nation, then for that product:

Correct Answer
verified

Which of the following is a valid counterargument to a call for higher tariffs "to save U.S. jobs"?

Correct Answer
verified

One main point of Frederic Bastiat's satire is that:

Correct Answer
verified

A maximum limit set on the amount of a specific good that may be imported into a country over a given period of time is called a:

Correct Answer
verified

The table below shows labor-productivity figures in two countries facing constant costs: Refer to the table above. Based on the data provided, it can be deduced that:

Correct Answer
verified

In which of the following countries did exports account for the biggest percent of GDP in 2011?

Correct Answer
verified

With constant costs in production, specialization tends to proceed to complete-specialization; but with increasing costs, specialization will not be complete.

Correct Answer
verified

Use the following table for Country X to answer the question below. Column 1 of the table is the price of a product. Column 2 is the quantity demanded domestically (Q_dd) and Column 3 is the quantity supplied domestically (Q_sd) . Refer to the table above. If the world price is $5.00, there will be:

Correct Answer
verified

A tariff is a:

Correct Answer
verified

When a nation starts opening up to international trade, it will see falling prices for:

Correct Answer
verified

When tariffs on imported products are removed by a nation, it will result in:

Correct Answer
verified

Which of the following is a likely result of imposing tariffs to increase domestic employment?

Correct Answer
verified

Correct Answer
verified

In Germany, one worker can produce either one cuckoo clock or one beer mug. In Taiwan, one worker can produce either two cuckoo clocks or three beer mugs. Who has the comparative advantage in each good?

Correct Answer
verified

Which of the following product-groups is a leading export of the United States?

Correct Answer
verified

Refer to the table above for a certain product's market in Econland. If the world price of the product were $6 and a tariff of $1 per unit were applied to imports of the product, then the total revenue (after tariff) going to domestic producers would be:

Correct Answer
verified

Exam 20: International Trade

Which country is the United States' largest trading partner in terms of volume of trade?

Correct AnswerverifiedShow Answer

If Countries A and B produce only either rubber bands or paper clips, their maximum outputs are shown in the production possibilities schedules below: In country A the opportunity cost of 1 paper clip is:

Correct AnswerverifiedShow Answer

An excise tax on imported items is known as a(n) :

Correct AnswerverifiedShow Answer

The NAFTA established a free-trade area and eliminated trade barriers between:

Correct AnswerverifiedShow Answer

If the world price of a product rises relative to the domestic price in a trading nation, then for that product:

Correct AnswerverifiedShow Answer

Which of the following is a valid counterargument to a call for higher tariffs "to save U.S. jobs"?

Correct AnswerverifiedShow Answer

One main point of Frederic Bastiat's satire is that:

Correct AnswerverifiedShow Answer

A maximum limit set on the amount of a specific good that may be imported into a country over a given period of time is called a:

Correct AnswerverifiedShow Answer

The table below shows labor-productivity figures in two countries facing constant costs: Refer to the table above. Based on the data provided, it can be deduced that:

Correct AnswerverifiedShow Answer

In which of the following countries did exports account for the biggest percent of GDP in 2011?

Correct AnswerverifiedShow Answer

With constant costs in production, specialization tends to proceed to complete-specialization; but with increasing costs, specialization will not be complete.

Correct AnswerverifiedShow Answer

Use the following table for Country X to answer the question below. Column 1 of the table is the price of a product. Column 2 is the quantity demanded domestically (Qdd) and Column 3 is the quantity supplied domestically (Qsd) . Refer to the table above. If the world price is $5.00, there will be:

Correct AnswerverifiedShow Answer

A tariff is a:

Correct AnswerverifiedShow Answer

When a nation starts opening up to international trade, it will see falling prices for:

Correct AnswerverifiedShow Answer

When tariffs on imported products are removed by a nation, it will result in:

Correct AnswerverifiedShow Answer

Which of the following is a likely result of imposing tariffs to increase domestic employment?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In Germany, one worker can produce either one cuckoo clock or one beer mug. In Taiwan, one worker can produce either two cuckoo clocks or three beer mugs. Who has the comparative advantage in each good?

Correct AnswerverifiedShow Answer

Which of the following product-groups is a leading export of the United States?

Correct AnswerverifiedShow Answer

Refer to the table above for a certain product's market in Econland. If the world price of the product were $6 and a tariff of $1 per unit were applied to imports of the product, then the total revenue (after tariff) going to domestic producers would be:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified