Question 1

Restricting imports to the U.S. can preserve American jobs throughout the economy.

Accepted Answer

A) True 
 B)False

Question 2

When each nation specializes in producing those goods and services in which it has a comparative advantage, total world production _____ .

Accepted Answer

The answer of When each nation specializes in producing those...

Question 3

What has happened to employment levels in the industries that have received the most import protection?

Accepted Answer

On a world

Question 4

The organization that settles trade disputes between countries is the

Accepted Answer

A)  Organization of Petroleum Exporting Countries. 
B)  World Trade Organization. 
C)  European Union. 
D)  United Nations. 
A)  Organization of Petroleum Exporting Countries. 
B)  World Trade Organization. 
C)  European Union. 
D)  United Nations.

Question 5

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

Accepted Answer

A)  the North American Free Trade Agreement. 
B)  the World Trade Act. 
C)  the Smoot-Hawley Act. 
D)  the Compromise Tariff. 
A)  the North American Free Trade Agreement. 
B)  the World Trade Act. 
C)  the Smoot-Hawley Act. 
D)  the Compromise Tariff.

Question 6

A limit on the amount of sugar imported into the U.S. is

Accepted Answer

A)  a tariff. 
B)  a subsidy. 
C)  a quota. 
D)  an infant-industry protection measure. 
A)  a tariff. 
B)  a subsidy. 
C)  a quota. 
D)  an infant-industry protection measure.

Question 7

The effect of a tariff is to shift the demand curve for a good to the right.

Accepted Answer

A) True 
 B)False

Question 8

What organization settles trade disputes between nations?

Accepted Answer

The World

Question 9

Imports include not only consumption goods but also many of the components used in manufacturing domestically produced goods.

Accepted Answer

A) True 
 B)False

Question 10

Table 16.4
   Table 16.4 gives the quantities of output that can be produced with the full amount of resources in each of two countries, France and Argentina.
-In Table 16.4, France has the absolute advantage in

Accepted Answer

A)  wine, but not beef. 
B)  beef, but not wine. 
C)  both beef and wine. 
D)  neither beef nor wine. 
A)  wine, but not beef. 
B)  beef, but not wine. 
C)  both beef and wine. 
D)  neither beef nor wine.

Question 11

The effect of a tariff is to

Accepted Answer

A)  increase the quantity of a good imported. 
B)  allow consumers maximum choice in the marketplace. 
C)  increase the price consumers pay for an imported good. 
D)  decrease the price consumers pay for an imported good. 
A)  increase the quantity of a good imported. 
B)  allow consumers maximum choice in the marketplace. 
C)  increase the price consumers pay for an imported good. 
D)  decrease the price consumers pay for an imported good.

Question 12

Table 16.5
   Table 16.5 shows the labor input required to produce a fixed quantity of product A and a fixed quantity of product B in each of two countries.
-In Table 16.5, if trade is allowed between the two countries

Accepted Answer

A)  country X will produce product A and country Y will produce product B. 
B)  country X will produce product B and country Y will produce product A. 
C)  country X will refuse to trade with country Y since country X has an absolute advantage. 
D)  country Y will refuse to trade with country X since country Y has an absolute advantage. 
A)  country X will produce product A and country Y will produce product B. 
B)  country X will produce product B and country Y will produce product A. 
C)  country X will refuse to trade with country Y since country X has an absolute advantage. 
D)  country Y will refuse to trade with country X since country Y has an absolute advantage.

Question 13

The effect of a tariff is to

Accepted Answer

A)  shift the supply curve of the imported good to the left. 
B)  shift the supply curve of the imported good to the right. 
C)  shift the demand curve for the imported good to the left. 
D)  shift the demand curve for the imported good to the right. 
A)  shift the supply curve of the imported good to the left. 
B)  shift the supply curve of the imported good to the right. 
C)  shift the demand curve for the imported good to the left. 
D)  shift the demand curve for the imported good to the right.

Question 14

Table 16.1
     Table 16.1 shows the quantities of cookies and coffee that can be produced with the full amount of resources available in each of two countries, Alpha and Beta.
-Refer to Table 16.1. If these two countries, Alpha and Beta, specialize based on comparative advantage

Accepted Answer

A)  Alpha will specialize in cookies, and Beta will specialize in coffee production. 
B)  Alpha will specialize in producing both items. 
C)  Beta will specialize in producing both items. 
D)  Alpha will specialize in coffee, and Beta will specialize in cookies. 
A)  Alpha will specialize in cookies, and Beta will specialize in coffee production. 
B)  Alpha will specialize in producing both items. 
C)  Beta will specialize in producing both items. 
D)  Alpha will specialize in coffee, and Beta will specialize in cookies.

Question 15

The growth in world trade since the 1950's has been much less than the growth in world GDP.

Accepted Answer

A) True 
 B)False

Question 16

Those who advocate import restrictions do so with the motive of protecting consumers.

Accepted Answer

A) True 
 B)False

Question 17

Table 16.2
     Table 16.2 shows the quantities of forks and knives that can be produced with the full amount of resources in each of two countries, Alpha and Beta.
-Refer to Table 16.2. If these two countries specialize based on comparative advantage, then

Accepted Answer

A)  Alpha should specialize in knives and Beta should specialize in forks. 
B)  Alpha should specialize in forks and Beta should specialize in knives. 
C)  Alpha should specialize in producing both items. 
D)  Beta should produce both items. 
A)  Alpha should specialize in knives and Beta should specialize in forks. 
B)  Alpha should specialize in forks and Beta should specialize in knives. 
C)  Alpha should specialize in producing both items. 
D)  Beta should produce both items.

Question 18

Currently, about _____ percent of U.S. GDP is made up of imports.

Accepted Answer

The answer of Currently, about _____ percent of U.S. GDP...

Question 19

Restricting imports will eventually lead to the loss of jobs in the _____ sector.

Accepted Answer

The answer of Restricting imports will eventually lead to the...

Question 20

Protecting domestic _____ is the most common reason given for restricting imports.

Accepted Answer

The answer of Protecting domestic _____ is the most common...

Restricting imports to the U.S. can preserve American jobs throughout the economy.

When each nation specializes in producing those goods and services in which it has a comparative advantage, total world production _____ .

What has happened to employment levels in the industries that have received the most import protection?

The organization that settles trade disputes between countries is the

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

A limit on the amount of sugar imported into the U.S. is

The effect of a tariff is to shift the demand curve for a good to the right.

What organization settles trade disputes between nations?

Imports include not only consumption goods but also many of the components used in manufacturing domestically produced goods.

Table 16.4 Table 16.4 gives the quantities of output that can be produced with the full amount of resources in each of two countries, France and Argentina. -In Table 16.4, France has the absolute advantage in

The effect of a tariff is to

Table 16.5 Table 16.5 shows the labor input required to produce a fixed quantity of product A and a fixed quantity of product B in each of two countries. -In Table 16.5, if trade is allowed between the two countries

The effect of a tariff is to

Table 16.1 Table 16.1 shows the quantities of cookies and coffee that can be produced with the full amount of resources available in each of two countries, Alpha and Beta. -Refer to Table 16.1. If these two countries, Alpha and Beta, specialize based on comparative advantage

The growth in world trade since the 1950's has been much less than the growth in world GDP.

Those who advocate import restrictions do so with the motive of protecting consumers.

Table 16.2 Table 16.2 shows the quantities of forks and knives that can be produced with the full amount of resources in each of two countries, Alpha and Beta. -Refer to Table 16.2. If these two countries specialize based on comparative advantage, then

Currently, about _____ percent of U.S. GDP is made up of imports.

Restricting imports will eventually lead to the loss of jobs in the _____ sector.

Protecting domestic _____ is the most common reason given for restricting imports.

Economics and the World of Scarcity

The United States Within the World Economy

Demand and Supply

Consumer Decision Making and Consumer Reaction to Price Changes

The Firm: Production and Cost

The Two Extremes: Perfect Competition and Pure Monopoly

In Between the Extremes: Imperfect Competition

Market and Government Failures

Labor Economics

Unemployment, Inflation, and the Business Cycle

Aggregate Demand and Supply

The Fiscal Policy Approach to Stabilization

Money and Our Banking System

The Monetary Policy Approach to Stabilization

How Economies Grow

Financing World Trade

Filters

Exam 16: Trading With Other Nations

Restricting imports to the U.S. can preserve American jobs throughout the economy.

When each nation specializes in producing those goods and services in which it has a comparative advantage, total world production _____ .

What has happened to employment levels in the industries that have received the most import protection?

The organization that settles trade disputes between countries is the

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

A limit on the amount of sugar imported into the U.S. is

The effect of a tariff is to shift the demand curve for a good to the right.

What organization settles trade disputes between nations?

Imports include not only consumption goods but also many of the components used in manufacturing domestically produced goods.

Table 16.4 Table 16.4 gives the quantities of output that can be produced with the full amount of resources in each of two countries, France and Argentina. -In Table 16.4, France has the absolute advantage in

The effect of a tariff is to

Table 16.5 Table 16.5 shows the labor input required to produce a fixed quantity of product A and a fixed quantity of product B in each of two countries. -In Table 16.5, if trade is allowed between the two countries

The effect of a tariff is to

Table 16.1 Table 16.1 shows the quantities of cookies and coffee that can be produced with the full amount of resources available in each of two countries, Alpha and Beta. -Refer to Table 16.1. If these two countries, Alpha and Beta, specialize based on comparative advantage

The growth in world trade since the 1950's has been much less than the growth in world GDP.

Those who advocate import restrictions do so with the motive of protecting consumers.

Table 16.2 Table 16.2 shows the quantities of forks and knives that can be produced with the full amount of resources in each of two countries, Alpha and Beta. -Refer to Table 16.2. If these two countries specialize based on comparative advantage, then

Currently, about _____ percent of U.S. GDP is made up of imports.

Restricting imports will eventually lead to the loss of jobs in the _____ sector.

Protecting domestic _____ is the most common reason given for restricting imports.

Economics and the World of Scarcity

The United States Within the World Economy

Demand and Supply

Consumer Decision Making and Consumer Reaction to Price Changes

The Firm: Production and Cost

The Two Extremes: Perfect Competition and Pure Monopoly

In Between the Extremes: Imperfect Competition

Market and Government Failures

Labor Economics

Unemployment, Inflation, and the Business Cycle

Aggregate Demand and Supply

The Fiscal Policy Approach to Stabilization

Money and Our Banking System

The Monetary Policy Approach to Stabilization

How Economies Grow

Financing World Trade

Filters