Question 1

Figure: Home's Import­Competing Industry   (Figure: Home's Import­Competing Industry) What is the consumer
Surplus before trade?

Accepted Answer

A) triangle ADB 
B) triangle AEC 
C) quadrangle DEBC 
D) triangle EFG 
A) triangle ADB 
B) triangle AEC 
C) quadrangle DEBC 
D) triangle EFG

Question 2

SCENARIO: FINNISH STEEL
Suppose that the free­trade price of a ton of steel is €500.(Note: € is the
Symbol for the euro, a common currency used in 16 European countries,
Including Finland.) Finland, a small country, imposes a €60 per­ton
Specific tariff on imported steel.With the tariff, Finland produces 300,000
Tons of steel and consumes 600,000 tons of steel.
Reference: Ref 8­5
(Scenario: Finnish Steel) Suppose that the €60­per­ton tariff caused
Finnish production of steel to increase by 100,000 tons and Finnish
Consumption of steel to fall by 100,000 tons.What is the value of
Finland's welfare loss due to the tariff?

Accepted Answer

A) 200,000 tons 
B) €6 million 
C) €12 million 
D) €15 million 
A) 200,000 tons 
B) €6 million 
C) €12 million 
D) €15 million

Question 3

How high was the U.S.tariff on imported tires from China and when did it
expire?

Accepted Answer

The U.S.imposed a 55% tariff on tires im

Question 4

SCENARIO: FINNISH STEEL
Suppose that the free­trade price of a ton of steel is €500.(Note: € is the
Symbol for the euro, a common currency used in 16 European countries,
Including Finland.) Finland, a small country, imposes a €60 per­ton
Specific tariff on imported steel.With the tariff, Finland produces 300,000
Tons of steel and consumes 600,000 tons of steel.
Reference: Ref 8­5
(Scenario: Finnish Steel) What will happen to the Finnish price of steel if
Finnish demand increases and the tariff remains at €60­per­ton?

Accepted Answer

A) It will not change. 
B) It will increase. 
C) It will decrease. 
D) It will first increase, then decrease. 
A) It will not change. 
B) It will increase. 
C) It will decrease. 
D) It will first increase, then decrease.

Question 5

The United States recently levied tariffs on tires imported from what
Country?

Accepted Answer

A) Japan 
B) Brazil 
C) Russia 
D) China 
A) Japan 
B) Brazil 
C) Russia 
D) China

Question 6

If S = 1P represents a country's home supply curve and D = 100 - 1P
Represents its home demand curve, then the equation representing its
Import demand curve is:

Accepted Answer

A) 100 - 2P. 
B) 50 - 1P. 
C) 100 - 1P. 
D) 50 - 2P. 
A) 100 - 2P. 
B) 50 - 1P. 
C) 100 - 1P. 
D) 50 - 2P.

Question 7

(Figure: Home's Import­Competing Industry) What is this nation's
"welfare" after trade?

Accepted Answer

A) triangle AFB 
B) triangle AEC + triangle EFG 
C) quadrangle DEB 
D) triangle EFG 
A) triangle AFB 
B) triangle AEC + triangle EFG 
C) quadrangle DEB 
D) triangle EFG

Question 8

Reference: Ref 8­6
(Scenario: Guatemala's Television Market) Who will benefit from
Guatemala's 100% tariff on imported TVs?

Accepted Answer

A) Guatemala's consumers 
B) Guatemala's TV producers 
C) Guatemala's TV importers 
D) foreign TV manufacturers 
A) Guatemala's consumers 
B) Guatemala's TV producers 
C) Guatemala's TV importers 
D) foreign TV manufacturers

Question 9

We can measure producer and consumer surplus by looking at the supply
And demand graphical representation.Consumer surplus is:

Accepted Answer

A) the area above the supply curve but below the equilibrium price. 
B) the area below the demand curve but greater than the equilibrium price. 
C) the area below the demand curve all the way down to the quantity axis. 
D) the combined triangular area below the demand curve and above the supply curve. 
A) the area above the supply curve but below the equilibrium price. 
B) the area below the demand curve but greater than the equilibrium price. 
C) the area below the demand curve all the way down to the quantity axis. 
D) the combined triangular area below the demand curve and above the supply curve.

Question 10

SCENARIO: GUATEMALA'S TELEVISION MARKET
The following table gives the hypothetical supply and demand of television  
(Scenario: Guatemala's Television Market) How much total tariff revenue
Will Guatemala collect when it imposes the 100% tariff on imported TVs?

Accepted Answer

A) $300 
B) $0 
C) $240,000 
D) $360,000 
A) $300 
B) $0 
C) $240,000 
D) $360,000

Question 11

(Figure: Home's Import­Competing Industry) What is the consumer
Surplus after trade?

Accepted Answer

A) triangle ADB 
B) triangle AEC 
C) quadrangle DEBC 
D) triangle EFG 
A) triangle ADB 
B) triangle AEC 
C) quadrangle DEBC 
D) triangle EFG

Question 12

Which organization acts as a forum for countries to come to agreement on
Trade policies and resolve trade policy disputes?

Accepted Answer

A) the International Trade Organization 
B) the United Nations 
C) the World Trade Organization 
D) the United Nations Conference on Trade and Development 
A) the International Trade Organization 
B) the United Nations 
C) the World Trade Organization 
D) the United Nations Conference on Trade and Development

Question 13

SCENARIO: FINNISH STEEL
Suppose that the free­trade price of a ton of steel is €500.(Note: € is the
Symbol for the euro, a common currency used in 16 European countries,
Including Finland.) Finland, a small country, imposes a €60 per­ton
Specific tariff on imported steel.With the tariff, Finland produces 300,000
Tons of steel and consumes 600,000 tons of steel.
Reference: Ref 8­5
(Scenario: Finnish Steel) How much total tariff revenue will the Finnish
Government collect as a result of the €60­per­ton tariff?

Accepted Answer

A) €6 million 
B) €12 million 
C) €18 million 
D) €30 million 
A) €6 million 
B) €12 million 
C) €18 million 
D) €30 million

Question 14

GATT maintained a provision that nations could enact temporary
Emergency tariffs or quotas if imports threatened the existence of
Domestic producers.The WTO has not struck that provision.Economists
Call this:

Accepted Answer

A) the tariff bill. 
B) the escape clause. 
C) justifiable means. 
D) domestic job security provision. 
A) the tariff bill. 
B) the escape clause. 
C) justifiable means. 
D) domestic job security provision.

Question 15

GATT is the acronym (or abbreviation) for:

Accepted Answer

A) the General Agreement on Taxes and Tariffs. 
B) the General Agreement on Tariffs and Trade. 
C) the General Agreement on Trade and Taxes. 
D) the General Agreement on Trade. 
A) the General Agreement on Taxes and Tariffs. 
B) the General Agreement on Tariffs and Trade. 
C) the General Agreement on Trade and Taxes. 
D) the General Agreement on Trade.

Question 16

SCENARIO: FINNISH STEEL
Suppose that the free­trade price of a ton of steel is €500.(Note: € is the
Symbol for the euro, a common currency used in 16 European countries,
Including Finland.) Finland, a small country, imposes a €60 per­ton
Specific tariff on imported steel.With the tariff, Finland produces 300,000
Tons of steel and consumes 600,000 tons of steel.
Reference: Ref 8­5
(Scenario: Finnish Steel) What is likely to happen to Finnish production of
Steel and the price of steel sold in Finland after the €60­per­ton tariff is
Imposed?

Accepted Answer

A) Finnish steel production will fall, and the Finnish price of steel will fall. 
B) Finnish steel production will rise, and the Finnish price of steel will fall. 
C) Finnish steel production will fall, and the Finnish price of steel will rise. 
D) Finnish steel production will rise, and the Finnish price of steel will rise. 
A) Finnish steel production will fall, and the Finnish price of steel will fall. 
B) Finnish steel production will rise, and the Finnish price of steel will fall. 
C) Finnish steel production will fall, and the Finnish price of steel will rise. 
D) Finnish steel production will rise, and the Finnish price of steel will rise.

Question 17

The General Agreement on Tariffs and Trade focused on:

Accepted Answer

A) raising tariffs on agricultural products. 
B) lowering trade restrictions between countries. 
C) promoting full employment worldwide. 
D) increasing trade restrictions between countries. 
A) raising tariffs on agricultural products. 
B) lowering trade restrictions between countries. 
C) promoting full employment worldwide. 
D) increasing trade restrictions between countries.

Question 18

SCENARIO: FINNISH STEEL
Suppose that the free­trade price of a ton of steel is €500.(Note: € is the
Symbol for the euro, a common currency used in 16 European countries,
Including Finland.) Finland, a small country, imposes a €60 per­ton
Specific tariff on imported steel.With the tariff, Finland produces 300,000
Tons of steel and consumes 600,000 tons of steel.
Reference: Ref 8­5
(Scenario: Finnish Steel) What is the value of the tariff revenue from the
€60­per­ton tariff?

Accepted Answer

A) €6 million 
B) €12 million 
C) €18 million 
D) €30 million 
A) €6 million 
B) €12 million 
C) €18 million 
D) €30 million

Question 19

The difference between the price consumers are willing to pay and the
Price that they actually pay is known as:

Accepted Answer

A) price discrimination. 
B) government surplus. 
C) consumer surplus. 
D) producer surplus. 
A) price discrimination. 
B) government surplus. 
C) consumer surplus. 
D) producer surplus.

Question 20

Figure: Home Market I   (Figure: Home Market I) Under free trade, the Home country will import:

Accepted Answer

A) 26. 
B) 22. 
C) 16. 
D) 10. 
A) 26. 
B) 22. 
C) 16. 
D) 10.

Figure: Home's ImportCompeting Industry (Figure: Home's ImportCompeting Industry) What is the consumer Surplus before trade?

How high was the U.S.tariff on imported tires from China and when did it expire?

The United States recently levied tariffs on tires imported from what Country?

If S = 1P represents a country's home supply curve and D = 100 - 1P Represents its home demand curve, then the equation representing its Import demand curve is:

(Figure: Home's ImportCompeting Industry) What is this nation's "welfare" after trade?

Reference: Ref 86 (Scenario: Guatemala's Television Market) Who will benefit from Guatemala's 100% tariff on imported TVs?

We can measure producer and consumer surplus by looking at the supply And demand graphical representation.Consumer surplus is:

SCENARIO: GUATEMALA'S TELEVISION MARKET The following table gives the hypothetical supply and demand of television (Scenario: Guatemala's Television Market) How much total tariff revenue Will Guatemala collect when it imposes the 100% tariff on imported TVs?

(Figure: Home's ImportCompeting Industry) What is the consumer Surplus after trade?

Which organization acts as a forum for countries to come to agreement on Trade policies and resolve trade policy disputes?

GATT maintained a provision that nations could enact temporary Emergency tariffs or quotas if imports threatened the existence of Domestic producers.The WTO has not struck that provision.Economists Call this:

GATT is the acronym (or abbreviation) for:

The General Agreement on Tariffs and Trade focused on:

The difference between the price consumers are willing to pay and the Price that they actually pay is known as:

Figure: Home Market I (Figure: Home Market I) Under free trade, the Home country will import:

The Global Economy

Trade and Technology: the Ricardian Model

Gains and Losses From Trade in the Specific-Factors Model

Trade and Resources: the Heckscher-Ohlin Model

Movement of Labor and Capital Between Countries

Increasing Returns to Scale and Monopolistic Competition

Import Tariffs and Quotas Under Perfect Competition

International Agreements: Trade, Labor, and the Environment

Introduction to Exchange Rates and the Foreign Exchange Market

Exchange Rates I: the Monetary Approach in the Long Run

Filters

Exam 8: Import Tariffs and Quotas Under Imperfect Competition

Figure: Home's Import­Competing Industry (Figure: Home's Import­Competing Industry) What is the consumer Surplus before trade?

How high was the U.S.tariff on imported tires from China and when did it expire?

The United States recently levied tariffs on tires imported from what Country?

If S = 1P represents a country's home supply curve and D = 100 - 1P Represents its home demand curve, then the equation representing its Import demand curve is:

(Figure: Home's Import­Competing Industry) What is this nation's "welfare" after trade?

Reference: Ref 8­6 (Scenario: Guatemala's Television Market) Who will benefit from Guatemala's 100% tariff on imported TVs?

We can measure producer and consumer surplus by looking at the supply And demand graphical representation.Consumer surplus is:

SCENARIO: GUATEMALA'S TELEVISION MARKET The following table gives the hypothetical supply and demand of television (Scenario: Guatemala's Television Market) How much total tariff revenue Will Guatemala collect when it imposes the 100% tariff on imported TVs?

(Figure: Home's Import­Competing Industry) What is the consumer Surplus after trade?

Which organization acts as a forum for countries to come to agreement on Trade policies and resolve trade policy disputes?

GATT maintained a provision that nations could enact temporary Emergency tariffs or quotas if imports threatened the existence of Domestic producers.The WTO has not struck that provision.Economists Call this:

GATT is the acronym (or abbreviation) for:

The General Agreement on Tariffs and Trade focused on:

The difference between the price consumers are willing to pay and the Price that they actually pay is known as:

Figure: Home Market I (Figure: Home Market I) Under free trade, the Home country will import:

The Global Economy

Trade and Technology: the Ricardian Model

Gains and Losses From Trade in the Specific-Factors Model

Trade and Resources: the Heckscher-Ohlin Model

Movement of Labor and Capital Between Countries

Increasing Returns to Scale and Monopolistic Competition

Import Tariffs and Quotas Under Perfect Competition

International Agreements: Trade, Labor, and the Environment

Introduction to Exchange Rates and the Foreign Exchange Market

Exchange Rates I: the Monetary Approach in the Long Run

Filters

Figure: Home's ImportCompeting Industry (Figure: Home's ImportCompeting Industry) What is the consumer Surplus before trade?

(Figure: Home's ImportCompeting Industry) What is this nation's "welfare" after trade?

Reference: Ref 86 (Scenario: Guatemala's Television Market) Who will benefit from Guatemala's 100% tariff on imported TVs?

(Figure: Home's ImportCompeting Industry) What is the consumer Surplus after trade?