Question 1

The effect of an import quota is

Accepted Answer

A) to shift the supply curve up by the amount of the quota. 
B) to lead to a decrease in demand. 
C) to make the supply curve vertical at the amount of the quota. 
D) to make the supply curve horizontal at the amount of the quota. 
A) to shift the supply curve up by the amount of the quota. 
B) to lead to a decrease in demand. 
C) to make the supply curve vertical at the amount of the quota. 
D) to make the supply curve horizontal at the amount of the quota.

Question 2

The highest tariff rates of the twentieth century in the United States arose as a result of which law?

Accepted Answer

A) the Robinson-Patman Act 
B) the Tariff of Abominations Act 
C) the Wheeler-Lea Act 
D) the Smoot-Hawley Act 
A) the Robinson-Patman Act 
B) the Tariff of Abominations Act 
C) the Wheeler-Lea Act 
D) the Smoot-Hawley Act

Question 3

The idea that tariffs should be imposed to protect new and developing industries is referred to as

Accepted Answer

A) the start-up argument. 
B) the infant industry argument. 
C) the incubator business theory. 
D) the new markets theory. 
A) the start-up argument. 
B) the infant industry argument. 
C) the incubator business theory. 
D) the new markets theory.

Question 4

The law that created the high level of tariffs in United States in the 1930s is

Accepted Answer

A) the GATT Act. 
B) the World Trade Act. 
C) the Smoot-Hawley Act. 
D) the Tariffs Agreement Act. 
A) the GATT Act. 
B) the World Trade Act. 
C) the Smoot-Hawley Act. 
D) the Tariffs Agreement Act.

Question 5

-Assuming that opportunity costs are constant, which of the following is a correct statement? (See the above table.

Accepted Answer

A) The United States has a comparative advantage in bicycle production. 
B) The United States has a comparative advantage in producing both goods. 
C) Mexico has a comparative advantage in producing bicycles. 
D) Mexico has a comparative advantage in producing both goods. 
A) The United States has a comparative advantage in bicycle production. 
B) The United States has a comparative advantage in producing both goods. 
C) Mexico has a comparative advantage in producing bicycles. 
D) Mexico has a comparative advantage in producing both goods.

Question 6

The standard of living in a nation depends on

Accepted Answer

A) how well its economy functions relative to other countries. 
B) the size of the country, with larger nations always doing better than smaller ones. 
C) how well the economy functions within that country. 
D) whether or not its currency is adopted as the world's monetary standard. 
A) how well its economy functions relative to other countries. 
B) the size of the country, with larger nations always doing better than smaller ones. 
C) how well the economy functions within that country. 
D) whether or not its currency is adopted as the world's monetary standard.

Question 7

Why do free trade proponents applaud successful trade deflection?

Accepted Answer

A) It circumvents trade restrictions within regional trade blocs. 
B) It increases trade restrictions within regional trade blocs. 
C) It promotes more rules of origin laws. 
D) It decreases incentives for trade diversion. 
A) It circumvents trade restrictions within regional trade blocs. 
B) It increases trade restrictions within regional trade blocs. 
C) It promotes more rules of origin laws. 
D) It decreases incentives for trade diversion.

Question 8

"The United States has fallen behind Japan and most of Europe in terms of competitiveness." Do you agree or disagree? Why?

Accepted Answer

Disagree. According to the Ins

Question 9

A quota is

Accepted Answer

A) a tariff imposed on goods that are dumped in the country. 
B) a law that prevents ecologically damaging goods from being imported into a country. 
C) a market-imposed balancing factor that keeps prices of imports and exports in equilibrium. 
D) a government-imposed restriction on the quantity of a specific good that can be imported. 
A) a tariff imposed on goods that are dumped in the country. 
B) a law that prevents ecologically damaging goods from being imported into a country. 
C) a market-imposed balancing factor that keeps prices of imports and exports in equilibrium. 
D) a government-imposed restriction on the quantity of a specific good that can be imported.

Question 10

Comparative advantage is

Accepted Answer

A) the ability to produce more output from given inputs than another producer can. 
B) the ability to produce a good at a lower opportunity cost than other producers. 
C) the ability to produce more output of all goods than anyone else can. 
D) the ability to produce all goods at lower costs than anyone else can. 
A) the ability to produce more output from given inputs than another producer can. 
B) the ability to produce a good at a lower opportunity cost than other producers. 
C) the ability to produce more output of all goods than anyone else can. 
D) the ability to produce all goods at lower costs than anyone else can.

Question 11

Trade restrictions tend to make domestic products

Accepted Answer

A) cheaper because they do not have to compete with foreign goods. 
B) cheaper because they do have to compete with foreign goods. 
C) more expensive because they have to compete with foreign goods. 
D) more expensive because they do not have to compete with foreign goods. 
A) cheaper because they do not have to compete with foreign goods. 
B) cheaper because they do have to compete with foreign goods. 
C) more expensive because they have to compete with foreign goods. 
D) more expensive because they do not have to compete with foreign goods.

Question 12

Maximum Feasible Hourly Production Rates (in Tons)of Either
Wine or Beef Using All Available Resources
Product Argentina France
Wine (gallons)30 60
Beef (pounds)10 30
-Suppose that opportunity costs are constant and that Fred can either bake a maximum of six pies or three cakes in a day. Ethel can either produce a maximum of eight pies or two cakes in a day. Ethel's opportunity cost to produce one cake is

Accepted Answer

A) one-half pie. 
B) two pies. 
C) six pies. 
D) four pies. 
A) one-half pie. 
B) two pies. 
C) six pies. 
D) four pies.

Question 13

The selling of a good or service abroad at a price below production costs is

Accepted Answer

A) marginal cost selling. 
B) price discrimination. 
C) price differentiation. 
D) dumping. 
A) marginal cost selling. 
B) price discrimination. 
C) price differentiation. 
D) dumping.

Question 14

The General Agreement on Tariffs and Trade is an international agreement

Accepted Answer

A) that outlaws all tariffs but permits quotas. 
B) to encourage world trade by lowering tariffs and other trade barriers. 
C) to encourage world trade by lending resources to developing countries. 
D) between the United States and Japan that has never been ratified, resulting in several trade wars with Japan. 
A) that outlaws all tariffs but permits quotas. 
B) to encourage world trade by lowering tariffs and other trade barriers. 
C) to encourage world trade by lending resources to developing countries. 
D) between the United States and Japan that has never been ratified, resulting in several trade wars with Japan.

Question 15

A quota is

Accepted Answer

A) a government-imposed restriction on the quantity of a specific good that can be imported into a country. 
B) a tariff imposed on goods that are dumped into the home country. 
C) a tariff imposed on goods that are subsidized by their domestic governments and exported to other countries. 
D) a tariff based on the value of the imported good. 
A) a government-imposed restriction on the quantity of a specific good that can be imported into a country. 
B) a tariff imposed on goods that are dumped into the home country. 
C) a tariff imposed on goods that are subsidized by their domestic governments and exported to other countries. 
D) a tariff based on the value of the imported good.

Question 16

Maximum Feasible Hourly Production Rates of Either
Computers or Bicycles Using All Available Resources
Product United States Mexico
Computers 8 10
Bicycles 4 2
-Refer to the above table. It may be concluded that

Accepted Answer

A) Mexico has a comparative advantage in computer production. 
B) Mexico has a comparative advantage in bicycle production. 
C) The United States has a comparative advantage in producing both goods. 
D) The United States has a comparative advantage in producing neither good. 
A) Mexico has a comparative advantage in computer production. 
B) Mexico has a comparative advantage in bicycle production. 
C) The United States has a comparative advantage in producing both goods. 
D) The United States has a comparative advantage in producing neither good.

Question 17

Maximum Feasible Hourly Production Rates (in Tons)of Either
Pizzas or Donuts Using All Available Resources
Product Country Alpha Country Beta
Pizzas 10 2
Donuts 10 12
-According to the above table, Alpha has comparative advantage in producing

Accepted Answer

A) pizzas. 
B) donuts. 
C) both pizzas and donuts. 
D) neither pizzas nor donuts. 
A) pizzas. 
B) donuts. 
C) both pizzas and donuts. 
D) neither pizzas nor donuts.

Question 18

Maximum Feasible Hourly Production Rates (in Tons)of Either
Wine or Beef Using All Available Resources
Product Argentina France
Wine (gallons)30 60
Beef (pounds)10 30
-Use the above table. Assuming constant opportunity costs, the opportunity cost of producing a pound of beef in Argentina is

Accepted Answer

A) 2 gallons of wine. 
B) 3 gallons of wine. 
C) 0.5 gallons of wine. 
D) 0.33 gallons of wine. 
A) 2 gallons of wine. 
B) 3 gallons of wine. 
C) 0.5 gallons of wine. 
D) 0.33 gallons of wine.

Question 19

If Bob can produce completed mathematics homework assignments at a lower opportunity cost than Jane can accomplish, then Bob has ________ in completing mathematics homework assignments.

Accepted Answer

A) a relative advantage 
B) an absolute advantage 
C) a complete advantage 
D) a comparative disadvantage 
A) a relative advantage 
B) an absolute advantage 
C) a complete advantage 
D) a comparative disadvantage

Question 20

-According to the above table, which assumes that opportunity costs of producing goods X and Y are constant, Chen has comparative advantage in production of

Accepted Answer

A) Good X. 
B) Good Y. 
C) both goods. 
D) neither good. 
A) Good X. 
B) Good Y. 
C) both goods. 
D) neither good.

The effect of an import quota is

The highest tariff rates of the twentieth century in the United States arose as a result of which law?

The idea that tariffs should be imposed to protect new and developing industries is referred to as

The law that created the high level of tariffs in United States in the 1930s is

-Assuming that opportunity costs are constant, which of the following is a correct statement? (See the above table.

The standard of living in a nation depends on

Why do free trade proponents applaud successful trade deflection?

"The United States has fallen behind Japan and most of Europe in terms of competitiveness." Do you agree or disagree? Why?

A quota is

Comparative advantage is

Trade restrictions tend to make domestic products

The selling of a good or service abroad at a price below production costs is

The General Agreement on Tariffs and Trade is an international agreement

A quota is

Maximum Feasible Hourly Production Rates of Either Computers or Bicycles Using All Available Resources Product United States Mexico Computers 8 10 Bicycles 4 2 -Refer to the above table. It may be concluded that

Maximum Feasible Hourly Production Rates (in Tons)of Either Pizzas or Donuts Using All Available Resources Product Country Alpha Country Beta Pizzas 10 2 Donuts 10 12 -According to the above table, Alpha has comparative advantage in producing

Maximum Feasible Hourly Production Rates (in Tons)of Either Wine or Beef Using All Available Resources Product Argentina France Wine (gallons)30 60 Beef (pounds)10 30 -Use the above table. Assuming constant opportunity costs, the opportunity cost of producing a pound of beef in Argentina is

If Bob can produce completed mathematics homework assignments at a lower opportunity cost than Jane can accomplish, then Bob has ________ in completing mathematics homework assignments.

-According to the above table, which assumes that opportunity costs of producing goods X and Y are constant, Chen has comparative advantage in production of

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, Poverty, and Health Care

Environmental Economics

Exchange Rates and the Balance of Payments

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Exam 32: Comparative Advantage and the Open Economy

The effect of an import quota is

The highest tariff rates of the twentieth century in the United States arose as a result of which law?

The idea that tariffs should be imposed to protect new and developing industries is referred to as

The law that created the high level of tariffs in United States in the 1930s is

-Assuming that opportunity costs are constant, which of the following is a correct statement? (See the above table.

The standard of living in a nation depends on

Why do free trade proponents applaud successful trade deflection?

"The United States has fallen behind Japan and most of Europe in terms of competitiveness." Do you agree or disagree? Why?

A quota is

Comparative advantage is

Trade restrictions tend to make domestic products

The selling of a good or service abroad at a price below production costs is

The General Agreement on Tariffs and Trade is an international agreement

A quota is

Maximum Feasible Hourly Production Rates of Either Computers or Bicycles Using All Available Resources Product United States Mexico Computers 8 10 Bicycles 4 2 -Refer to the above table. It may be concluded that

Maximum Feasible Hourly Production Rates (in Tons)of Either Pizzas or Donuts Using All Available Resources Product Country Alpha Country Beta Pizzas 10 2 Donuts 10 12 -According to the above table, Alpha has comparative advantage in producing

Maximum Feasible Hourly Production Rates (in Tons)of Either Wine or Beef Using All Available Resources Product Argentina France Wine (gallons)30 60 Beef (pounds)10 30 -Use the above table. Assuming constant opportunity costs, the opportunity cost of producing a pound of beef in Argentina is

If Bob can produce completed mathematics homework assignments at a lower opportunity cost than Jane can accomplish, then Bob has ________ in completing mathematics homework assignments.

-According to the above table, which assumes that opportunity costs of producing goods X and Y are constant, Chen has comparative advantage in production of

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, Poverty, and Health Care

Environmental Economics

Exchange Rates and the Balance of Payments

Filters