Question 1

Which of the following is the best example of a quota?

Accepted Answer

A)  a limit imposed on the number of sport utility vehicles that Jordan can import from Japan 
B)  a $5,000 per -car fee imposed on all sport utility vehicles imported into Jordan 
C)  a subsidy granted by the Jordanian government to domestic garment manufacturers so they can compete more effectively with foreign garment manufacturers 
D)  a tax placed on all sport utility vehicles sold in the domestic market 
A)  a limit imposed on the number of sport utility vehicles that Jordan can import from Japan 
B)  a $5,000 per -car fee imposed on all sport utility vehicles imported into Jordan 
C)  a subsidy granted by the Jordanian government to domestic garment manufacturers so they can compete more effectively with foreign garment manufacturers 
D)  a tax placed on all sport utility vehicles sold in the domestic market

Question 2

Which of the following statements best describes the predicted gains made by Saudi Arabia as a result of the GCC Common Market?

Accepted Answer

A)  Labor exports will decrease and import of national investments will increase. 
B)  Labor exports will increase and import of national investments will decrease. 
C)  Labor exports will increase and import of national investments will increase. 
D)  Labor exports will decrease and import of national investments will decrease. 
A)  Labor exports will decrease and import of national investments will increase. 
B)  Labor exports will increase and import of national investments will decrease. 
C)  Labor exports will increase and import of national investments will increase. 
D)  Labor exports will decrease and import of national investments will decrease.

Question 3

Automobiles and many other products are differentiated. As a result

Accepted Answer

A)  the quality of imported automobiles is less than it could be. 
B)  different countries may each have a comparative advantage in producing different types of automobiles. 
C)  consumers of automobiles have difficulty deciding what type of imported automobile to buy. 
D)  we see countries specializing completely in the production of automobiles. 
A)  the quality of imported automobiles is less than it could be. 
B)  different countries may each have a comparative advantage in producing different types of automobiles. 
C)  consumers of automobiles have difficulty deciding what type of imported automobile to buy. 
D)  we see countries specializing completely in the production of automobiles.

Question 4

Some government officials argue that the success achieved by firms in the textile industry, in Egypt and Jordan, in developing a comparative advantage because of external economies can be used to justify trade barriers as a means to protect an "infant industry." After an infant industry gains experience it can compete in international markets and the trade barriers can be removed. What objections do economists make to this argument in favor of trade barriers?

Accepted Answer

Many economists believe that this is the

Question 5

In the 1980s Japan agreed to limit the quantity of automobiles it would export to the United States. Why did the Japanese government agree to this trade restriction?

Accepted Answer

A)  Japanese automobile producers lobbied for the restrictions in order to increase the price of their exports to the U.S. 
B)  The Japanese government wanted more automobiles to be available for export to countries other than the United States. 
C)  The Japanese government feared that the alternative would be a tariff or quota on imports of Japanese automobiles imposed by the U.S. government. 
D)  The Japanese government wanted to limit sales to the United States in order to make more automobiles available for Japanese consumers. 
A)  Japanese automobile producers lobbied for the restrictions in order to increase the price of their exports to the U.S. 
B)  The Japanese government wanted more automobiles to be available for export to countries other than the United States. 
C)  The Japanese government feared that the alternative would be a tariff or quota on imports of Japanese automobiles imposed by the U.S. government. 
D)  The Japanese government wanted to limit sales to the United States in order to make more automobiles available for Japanese consumers.

Which of the following is the best example of a quota?

Which of the following statements best describes the predicted gains made by Saudi Arabia as a result of the GCC Common Market?

Automobiles and many other products are differentiated. As a result

In the 1980s Japan agreed to limit the quantity of automobiles it would export to the United States. Why did the Japanese government agree to this trade restriction?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Elasticity: The Responsiveness of Demand and Supply

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: The Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

Externalities, Environmental Policy, and Public Goods

GDP: Measuring Total Production and Income

Economic Growth, the Financial System, and Business Cycles

Unemployment and Inflation

The Markets for Labor and Other Factors of Production

Output and Expenditure in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Central Bank

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Central Bank Policy

Macroeconomics in an Open Economy

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Exam 14: Comparative Advantage and the Gains From International Trade Macro

Which of the following is the best example of a quota?

Which of the following statements best describes the predicted gains made by Saudi Arabia as a result of the GCC Common Market?

Automobiles and many other products are differentiated. As a result

In the 1980s Japan agreed to limit the quantity of automobiles it would export to the United States. Why did the Japanese government agree to this trade restriction?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Elasticity: The Responsiveness of Demand and Supply

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: The Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

Externalities, Environmental Policy, and Public Goods

GDP: Measuring Total Production and Income

Economic Growth, the Financial System, and Business Cycles

Unemployment and Inflation

The Markets for Labor and Other Factors of Production

Output and Expenditure in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Central Bank

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Central Bank Policy

Macroeconomics in an Open Economy

Filters