Question 1

In the large­country case, when a tariff is imposed, the country:

Accepted Answer

A) sees a terms­of­trade gain. 
B) is able to reduce world price of the imported good. 
C) is going to experience an increase in consumer surplus. 
D) sees a terms­of­trade gain and is able to reduce world price of the imported good. 
A) sees a terms­of­trade gain. 
B) is able to reduce world price of the imported good. 
C) is going to experience an increase in consumer surplus. 
D) sees a terms­of­trade gain and is able to reduce world price of the imported good.

Question 2

Trade diversion is one reason that some economists:

Accepted Answer

A) believe we should not even bother to promote free trade. 
B) recommend we change our focus from regional trade agreements to the WTO, a multilateral trade agreement. 
C) recommend we reinstate some tariffs that were actually beneficial to all nations. 
D) think we should exclude low­wage nations from trade agreements. 
A) believe we should not even bother to promote free trade. 
B) recommend we change our focus from regional trade agreements to the WTO, a multilateral trade agreement. 
C) recommend we reinstate some tariffs that were actually beneficial to all nations. 
D) think we should exclude low­wage nations from trade agreements.

Question 3

In a large­country case, an optimal tariff is one for which the
Terms­of­trade gain exceeds the:

Accepted Answer

A) producer surplus. 
B) increased price of the product imported. 
C) deadweight loss. 
D) consumer surplus. 
A) producer surplus. 
B) increased price of the product imported. 
C) deadweight loss. 
D) consumer surplus.

Question 4

Figure U.S.Imports from Mexico and Asia   (Figure: U.S.Imports from Mexico and Asia) The $100 tariff by
The United States results in a tariff revenue of:

Accepted Answer

A) $25,000. 
B) $5,000. 
C) $50,000. 
D) $2,500. 
A) $25,000. 
B) $5,000. 
C) $50,000. 
D) $2,500.

Question 5

When products from a high­cost country within a customs union
Replace imports from a low­cost country that is not a member of
The union, this is called:

Accepted Answer

A) trade creation. 
B) trade diversion. 
C) trade deflection. 
D) trade development. 
A) trade creation. 
B) trade diversion. 
C) trade deflection. 
D) trade development.

Question 6

Surveys of consumers regarding labor standards indicate that
They are willing to pay:

Accepted Answer

A) a large amount for a large improvement in working conditions. 
B) a small amount for a large improvement in working conditions. 
C) nothing for a large improvement in working conditions. 
D) a small amount for a small decline in working conditions. 
A) a large amount for a large improvement in working conditions. 
B) a small amount for a large improvement in working conditions. 
C) nothing for a large improvement in working conditions. 
D) a small amount for a small decline in working conditions.

Question 7

Why do the U.S.and European Union governments apply tariffs
to solar panel imports, even though solar panels generate
positive consumption externalities?

Accepted Answer

They believe that domestic pro

Question 8

The purpose of the Labor Side Agreement under NAFTA is to:

Accepted Answer

A) increase standards in Mexico only. 
B) increase standards throughout NAFTA. 
C) enforce existing standards throughout NAFTA. 
D) renegotiate standards. 
A) increase standards in Mexico only. 
B) increase standards throughout NAFTA. 
C) enforce existing standards throughout NAFTA. 
D) renegotiate standards.

Question 9

Figure: The Home and World Market   (Figure: The Home and World Markets) The graphs show the case
For a tariff imposed by a large country.According to these graphs, if
The world price of the product is given as $30, then home market
Firms will produce _______ and the total demand for the good will
Be _______.

Accepted Answer

A) 40; 100 
B) 20; 80 
C) 20; 100 
D) 40; 80 
A) 40; 100 
B) 20; 80 
C) 20; 100 
D) 40; 80

Question 10

What was the result of the Climate Summit held in December
2009?

Accepted Answer

A) All countries signed binding agreements to reduce their greenhouse gases by 20% during the next 10 years. 
B) No country signed binding agreements to reduce their greenhouse gases. 
C) Only developed industrialized countries agreed to reduce their greenhouse gases by 20% during the next 10 years. 
D) Only China and India agreed to reduce their greenhouse gases by 20% during the next 10 years. 
A) All countries signed binding agreements to reduce their greenhouse gases by 20% during the next 10 years. 
B) No country signed binding agreements to reduce their greenhouse gases. 
C) Only developed industrialized countries agreed to reduce their greenhouse gases by 20% during the next 10 years. 
D) Only China and India agreed to reduce their greenhouse gases by 20% during the next 10 years.

Question 11

The customs union could lead to losses for the home country if:

Accepted Answer

A) the other country in the customs union is the most efficient producer. 
B) the other country in the customs unions is not the most efficient producer. 
C) there are other countries outside the customs union that are inefficient. 
D) all countries are efficient producers. 
A) the other country in the customs union is the most efficient producer. 
B) the other country in the customs unions is not the most efficient producer. 
C) there are other countries outside the customs union that are inefficient. 
D) all countries are efficient producers.

Question 12

Which of the following was NOT an issue that the United States.
Had with the Kyoto Protocol?

Accepted Answer

A) Major U.S.trading partners (such as China and India) are exempt from the provisions-not fair! 
B) Europe's targets were set ridiculously low. 
C) We don't really know if pollution causes global warming. 
D) There are less costly ways to deal with environmental problems. 
A) Major U.S.trading partners (such as China and India) are exempt from the provisions-not fair! 
B) Europe's targets were set ridiculously low. 
C) We don't really know if pollution causes global warming. 
D) There are less costly ways to deal with environmental problems.

Question 13

Which of the following is often used to describe regional trade
Agreements that discriminate, giving better tariff treatment to
Other nations in the agreement over outside nation?

Accepted Answer

A) super­regionals 
B) preferential trade agreements 
C) exclusive trade arrangements 
D) equity trade agreements 
A) super­regionals 
B) preferential trade agreements 
C) exclusive trade arrangements 
D) equity trade agreements

Question 14

NGOs seem to do a better job than national policies because
They:

Accepted Answer

A) can enforce regulations. 
B) are better organized. 
C) target the worst offenders. 
D) target the worst offenders and are better organized. 
A) can enforce regulations. 
B) are better organized. 
C) target the worst offenders. 
D) target the worst offenders and are better organized.

Question 15

If a customs union includes the lowest­cost world producer of a
Product, then member countries:

Accepted Answer

A) will always be better off in trade with that product. 
B) will always be worse off in trade with that product. 
C) can be better off or worse off depending on the strengths of the trade diversion and trade creation effects for that product. 
D) will no longer export or import that product. 
A) will always be better off in trade with that product. 
B) will always be worse off in trade with that product. 
C) can be better off or worse off depending on the strengths of the trade diversion and trade creation effects for that product. 
D) will no longer export or import that product.

Question 16

The tragedy of the commons refers to the idea that:

Accepted Answer

A) trade inherently results in losses. 
B) common property often results in an abuse of the property, such as overfishing. 
C) trade restrictions can be useful. 
D) common property is always beneficial for people. 
A) trade inherently results in losses. 
B) common property often results in an abuse of the property, such as overfishing. 
C) trade restrictions can be useful. 
D) common property is always beneficial for people.

Question 17

Surveys of consumers regarding labor standards reveal that
They:

Accepted Answer

A) treat potential losses and potential gains equally. 
B) weigh potential losses more than potential gains. 
C) weigh potential losses less than potential gains. 
D) do not experience losses in gains. 
A) treat potential losses and potential gains equally. 
B) weigh potential losses more than potential gains. 
C) weigh potential losses less than potential gains. 
D) do not experience losses in gains.

Question 18

In the case of global pollution, the Nash equilibrium shows that if
One nation does not regulate its pollution, other nations:

Accepted Answer

A) will have to regulate even more strictly. 
B) will not regulate either because of international price competition. 
C) will regulate but will bring charges in the WTO against the other. 
D) will regulate, so they will not harm their own citizens. 
A) will have to regulate even more strictly. 
B) will not regulate either because of international price competition. 
C) will regulate but will bring charges in the WTO against the other. 
D) will regulate, so they will not harm their own citizens.

Question 19

The United States imposes a high (15.3%) tariff on garments
imported from Bangladesh.
A) What is the effect of the high (15.3%) U.S.tariff on garments
imported from Bangladesh on the Bangladesh economy?
B) In what way does this tariff affect Bangladeshi workers?
C) Until 2013, garments imported from Bangladesh paid no U.S.
tariff.Why did the United States suspend this trade treatment?

Accepted Answer

A) It lowers profits of the Bangladeshi

Question 20

What is a major cause of negative production externalities
Associated with the mining and processing of rare earth mineral?

Accepted Answer

A) Processing of rare earth minerals generates radioactive wastes. 
B) Rare earth mining is often done in less­developed countries. 
C) Processing of rare earth minerals is very costly in countries that possess rare earth mineral deposits. 
D) Processing of rare earth minerals generates air pollutants. 
A) Processing of rare earth minerals generates radioactive wastes. 
B) Rare earth mining is often done in less­developed countries. 
C) Processing of rare earth minerals is very costly in countries that possess rare earth mineral deposits. 
D) Processing of rare earth minerals generates air pollutants.

In the largecountry case, when a tariff is imposed, the country:

Trade diversion is one reason that some economists:

In a largecountry case, an optimal tariff is one for which the Termsoftrade gain exceeds the:

Figure U.S.Imports from Mexico and Asia (Figure: U.S.Imports from Mexico and Asia) The $100 tariff by The United States results in a tariff revenue of:

When products from a highcost country within a customs union Replace imports from a lowcost country that is not a member of The union, this is called:

Surveys of consumers regarding labor standards indicate that They are willing to pay:

Why do the U.S.and European Union governments apply tariffs to solar panel imports, even though solar panels generate positive consumption externalities?

The purpose of the Labor Side Agreement under NAFTA is to:

Figure: The Home and World Market (Figure: The Home and World Markets) The graphs show the case For a tariff imposed by a large country.According to these graphs, if The world price of the product is given as $30, then home market Firms will produce _ and the total demand for the good will Be _.

What was the result of the Climate Summit held in December 2009?

The customs union could lead to losses for the home country if:

Which of the following was NOT an issue that the United States. Had with the Kyoto Protocol?

Which of the following is often used to describe regional trade Agreements that discriminate, giving better tariff treatment to Other nations in the agreement over outside nation?

NGOs seem to do a better job than national policies because They:

If a customs union includes the lowestcost world producer of a Product, then member countries:

The tragedy of the commons refers to the idea that:

Surveys of consumers regarding labor standards reveal that They:

In the case of global pollution, the Nash equilibrium shows that if One nation does not regulate its pollution, other nations:

What is a major cause of negative production externalities Associated with the mining and processing of rare earth mineral?

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

Import Tariffs and Quotas Under Imperfect Competition

International Agreements: Trade, Labor, and the Environment

Introduction to Exchange Rates and the Foreign Exchange Market

Filters

Exam 11: Exchange Rates I: the Monetary Approach in the Long Run

In the large­country case, when a tariff is imposed, the country:

Trade diversion is one reason that some economists:

In a large­country case, an optimal tariff is one for which the Terms­of­trade gain exceeds the:

Figure U.S.Imports from Mexico and Asia (Figure: U.S.Imports from Mexico and Asia) The $100 tariff by The United States results in a tariff revenue of:

When products from a high­cost country within a customs union Replace imports from a low­cost country that is not a member of The union, this is called:

Surveys of consumers regarding labor standards indicate that They are willing to pay:

Why do the U.S.and European Union governments apply tariffs to solar panel imports, even though solar panels generate positive consumption externalities?

The purpose of the Labor Side Agreement under NAFTA is to:

What was the result of the Climate Summit held in December 2009?

The customs union could lead to losses for the home country if:

Which of the following was NOT an issue that the United States. Had with the Kyoto Protocol?

Which of the following is often used to describe regional trade Agreements that discriminate, giving better tariff treatment to Other nations in the agreement over outside nation?

NGOs seem to do a better job than national policies because They:

If a customs union includes the lowest­cost world producer of a Product, then member countries:

The tragedy of the commons refers to the idea that:

Surveys of consumers regarding labor standards reveal that They:

In the case of global pollution, the Nash equilibrium shows that if One nation does not regulate its pollution, other nations:

What is a major cause of negative production externalities Associated with the mining and processing of rare earth mineral?

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

Import Tariffs and Quotas Under Imperfect Competition

International Agreements: Trade, Labor, and the Environment

Introduction to Exchange Rates and the Foreign Exchange Market

Filters

In the largecountry case, when a tariff is imposed, the country:

In a largecountry case, an optimal tariff is one for which the Termsoftrade gain exceeds the:

When products from a highcost country within a customs union Replace imports from a lowcost country that is not a member of The union, this is called:

If a customs union includes the lowestcost world producer of a Product, then member countries: