Question 1

Over the last 50 years, most countries have

Accepted Answer

A) increased tariffs 
B) completely eliminated tariffs 
C) doubled tariffs 
D) dramatically reduced tariffs 
A) increased tariffs 
B) completely eliminated tariffs 
C) doubled tariffs 
D) dramatically reduced tariffs

Question 2

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

Accepted Answer

A) a subsidy from the Canadian government to domestic manufacturers of residential air conditioners to enable them to compete more effectively with foreign producers 
B) a limit on the quantity of residential air conditioners that can be imported from a foreign country 
C) a $150 fee imposed on all imported residential air conditioners 
D) a tax placed on all residential air conditioners sold in the domestic market to help offset the impact of emissions on the environment 
A) a subsidy from the Canadian government to domestic manufacturers of residential air conditioners to enable them to compete more effectively with foreign producers 
B) a limit on the quantity of residential air conditioners that can be imported from a foreign country 
C) a $150 fee imposed on all imported residential air conditioners 
D) a tax placed on all residential air conditioners sold in the domestic market to help offset the impact of emissions on the environment

Question 3

Protectionism

Accepted Answer

A) is the use of cheap labour to protect firms from paying high wages. 
B) is the use of trade barriers to protect domestic firms from foreign competition. 
C) refers to reductions in tariffs and other barriers that protect consumers from paying high prices. 
D) refers to the use of copyright and trademark laws to protect inventors and artists from losing the rights to their creative efforts. 
A) is the use of cheap labour to protect firms from paying high wages. 
B) is the use of trade barriers to protect domestic firms from foreign competition. 
C) refers to reductions in tariffs and other barriers that protect consumers from paying high prices. 
D) refers to the use of copyright and trademark laws to protect inventors and artists from losing the rights to their creative efforts.

Question 4

The World Trade Organization (WTO)promotes foreign trade and investment, or globalization.In recent years opposition to globalization has led to violent protests at meetings of the WTO.One reason for these anti-globalization protests is

Accepted Answer

A) foreign trade and investment are examples of zero-sum games. 
B) protesters believe that globalization will result in a return to communism in developing countries. 
C) protesters believe that free trade destroys the distinctive cultures of many countries. 
D) protesters object to the loss of intellectual property (such as software programs and movies)that results from foreign trade and investment. 
A) foreign trade and investment are examples of zero-sum games. 
B) protesters believe that globalization will result in a return to communism in developing countries. 
C) protesters believe that free trade destroys the distinctive cultures of many countries. 
D) protesters object to the loss of intellectual property (such as software programs and movies)that results from foreign trade and investment.

Question 5

The "Buy American" provision in the 2009 stimulus package would require that stimulus money be spent only on U.S.-made goods.In the market for steel, the "Buy American" provision would ________ the price of steel in the United States and ________ the quantity of steel demanded in the United States.

Accepted Answer

A) increase; increase 
B) increase; decrease 
C) decrease; increase 
D) decrease; decrease 
A) increase; increase 
B) increase; decrease 
C) decrease; increase 
D) decrease; decrease

Over the last 50 years, most countries have

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

Protectionism

The World Trade Organization (WTO)promotes foreign trade and investment, or globalization.In recent years opposition to globalization has led to violent protests at meetings of the WTO.One reason for these anti-globalization protests is

The "Buy American" provision in the 2009 stimulus package would require that stimulus money be spent only on U.S.-made goods.In the market for steel, the "Buy American" provision would the price of steel in the United States and the quantity of steel demanded in the United States.

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

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

The Markets for Labour and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Pricing Strategy

Firms, the Stock Market, and Corporate Governance

Filters

Exam 7: Comparative Advantage and the Gains From International Trade

Over the last 50 years, most countries have

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

Protectionism

The World Trade Organization (WTO)promotes foreign trade and investment, or globalization.In recent years opposition to globalization has led to violent protests at meetings of the WTO.One reason for these anti-globalization protests is

The "Buy American" provision in the 2009 stimulus package would require that stimulus money be spent only on U.S.-made goods.In the market for steel, the "Buy American" provision would ________ the price of steel in the United States and ________ the quantity of steel demanded in the United States.

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

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

The Markets for Labour and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Pricing Strategy

Firms, the Stock Market, and Corporate Governance

Filters

The "Buy American" provision in the 2009 stimulus package would require that stimulus money be spent only on U.S.-made goods.In the market for steel, the "Buy American" provision would the price of steel in the United States and the quantity of steel demanded in the United States.