Question 1

In 1995 ________,which was established in 1948,was replaced by ________.

Accepted Answer

A)  the GATT; the WTO 
B)  the WTO; NAFTA 
C)  the Smoot-Hawley Tariff; the GATT 
D)  NAFTA; the Smoot-Hawley Tariff 
A)  the GATT; the WTO 
B)  the WTO; NAFTA 
C)  the Smoot-Hawley Tariff; the GATT 
D)  NAFTA; the Smoot-Hawley Tariff

Question 2

If Canada has a comparative advantage relative to Mexico in the production of timber,then

Accepted Answer

A)  the explicit cost of production for timber is lower in Canada than in Mexico. 
B)  the opportunity cost of production for timber is lower in Canada than in Mexico. 
C)  the implicit costs of production for timber are lower in Canada than in Mexico. 
D)  the average cost of production for timber is lower in Canada than in Mexico. 
A)  the explicit cost of production for timber is lower in Canada than in Mexico. 
B)  the opportunity cost of production for timber is lower in Canada than in Mexico. 
C)  the implicit costs of production for timber are lower in Canada than in Mexico. 
D)  the average cost of production for timber is lower in Canada than in Mexico.

Question 3

One reason for the success that firms have in getting the government to erect barriers to foreign competition is that jobs lost to foreign competition are easy to identify but jobs created by foreign trade are often hard to identify.Which of the following is a second reason?

Accepted Answer

A)  The costs that tariffs and quotas impose on consumers are large in total but relatively small per person. 
B)  People who benefit from foreign trade tend not to vote in elections; people who are harmed by foreign trade are much more likely to vote. 
C)  Firms that benefit from trade barriers have more money to lobby government officials to support the barriers than do firms that are harmed by trade barriers. 
D)  The benefits from free trade are less than the costs. 
A)  The costs that tariffs and quotas impose on consumers are large in total but relatively small per person. 
B)  People who benefit from foreign trade tend not to vote in elections; people who are harmed by foreign trade are much more likely to vote. 
C)  Firms that benefit from trade barriers have more money to lobby government officials to support the barriers than do firms that are harmed by trade barriers. 
D)  The benefits from free trade are less than the costs.

Question 4

A situation in which a country does not trade with other countries is called

Accepted Answer

A)  autarky. 
B)  self-actualization. 
C)  autonomy. 
D)  independence. 
A)  autarky. 
B)  self-actualization. 
C)  autonomy. 
D)  independence.

Question 5

In 1930,the U.S.government attempted to help domestic firms that were harmed by the Great Depression by

Accepted Answer

A)  establishing the General Agreement on Tariffs and Trade (GATT). 
B)  passing the Smoot-Hawley Tariff. 
C)  establishing the World Trade Organization (WTO). 
D)  passing the North American Free Trade Agreement (NAFT
A) . 
A)  establishing the General Agreement on Tariffs and Trade (GATT). 
B)  passing the Smoot-Hawley Tariff. 
C)  establishing the World Trade Organization (WTO). 
D)  passing the North American Free Trade Agreement (NAFT
A) .

Question 6

When Roxanne,a U.S.citizen,purchases a designer dress from Barneys of New York that was made in Milan,the purchase is

Accepted Answer

A)  both a U.S. and an Italian import. 
B)  a U.S. import and an Italian export. 
C)  a U.S. export and an Italian import. 
D)  neither an export nor an import for either country. 
A)  both a U.S. and an Italian import. 
B)  a U.S. import and an Italian export. 
C)  a U.S. export and an Italian import. 
D)  neither an export nor an import for either country.

Question 7

In the 1930s,the United States charged an average tariff rate ________.Today,the rate is ________.

Accepted Answer

A)  of 100 percent; 20 percent 
B)  above 50 percent; less than 2 percent 
C)  of less than 10 percent; over 40 percent 
D)  of 17 percent; 33 percent 
A)  of 100 percent; 20 percent 
B)  above 50 percent; less than 2 percent 
C)  of less than 10 percent; over 40 percent 
D)  of 17 percent; 33 percent

Question 8

Exports are domestically produced goods and services

Accepted Answer

A)  sold to other countries. 
B)  sold to the government. 
C)  sold at home. 
D)  which are used to produce other goods and services. 
A)  sold to other countries. 
B)  sold to the government. 
C)  sold at home. 
D)  which are used to produce other goods and services.

Question 9

The intention of the "Buy American" provision in the 2009 stimulus bill was to

Accepted Answer

A)  increase jobs in the United States. 
B)  prevent foreign firms from dumping product in the United States. 
C)  insure that products used to build roads and bridges meet U.S. quality and safety standards. 
D)  save the government money by restricting the sale of more expensive foreign-made products. 
A)  increase jobs in the United States. 
B)  prevent foreign firms from dumping product in the United States. 
C)  insure that products used to build roads and bridges meet U.S. quality and safety standards. 
D)  save the government money by restricting the sale of more expensive foreign-made products.

Question 10

Suppose that American firms claim that protectionism in Canada is on the rise as the Canadian government attempts to protect its infant industries.This protectionism will cause the greatest harm to

Accepted Answer

A)  Canadian manufacturers. 
B)  the Canadian government. 
C)  manufacturers who export to Canada. 
D)  Canadian consumers. 
A)  Canadian manufacturers. 
B)  the Canadian government. 
C)  manufacturers who export to Canada. 
D)  Canadian consumers.

Question 11

In order to avoid the imposition of other types of trade barriers,foreign producers will sometimes agree to voluntary export restraints.With voluntary export restraints,foreign producers

Accepted Answer

A)  agree to meet specific quality standards required by the importing country. 
B)  limit their exports to a country. 
C)  pay a tax on all products they export. 
D)  must agree to import an equal quantity of products that they export. 
A)  agree to meet specific quality standards required by the importing country. 
B)  limit their exports to a country. 
C)  pay a tax on all products they export. 
D)  must agree to import an equal quantity of products that they export.

Question 12

Tastes for products such as beer differ.As a result

Accepted Answer

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

Question 13

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

Question 14

What are the four main sources of comparative advantage? Briefly explain each source and provide examples.

Accepted Answer

The 4 main sources cited are:
1.climate

Question 15

Table 9-2
Output Per Hour of Work
   
Table 9-2 shows the output per hour of work for handbags and jackets in Cambodia and in Thailand.
-Refer to Table 9-2.
a.Which country has an absolute advantage in the production of handbags and jackets?
b.Which country has a comparative advantage in the production of handbags?
c.Which country has a comparative advantage in the production of jackets?

Accepted Answer

a.Thailand has an absolute advantage in

Question 16

Figure 9-2
   
Suppose the U.S. government imposes a $0.40 per pound tariff on rice imports. Figure 9-2 shows the impact of this tariff.
-Refer to Figure 9-2.The tariff revenue collected by the government equals the area

Accepted Answer

A)  D + E + F. 
B)  E. 
C)  B + D + E + F. 
D)  C + D + E + F. 
A)  D + E + F. 
B)  E. 
C)  B + D + E + F. 
D)  C + D + E + F.

Question 17

Today,the United States charged an average tariff rate

Accepted Answer

A)  that is more than its average tariff rate in 1930. 
B)  which is greater than any other high-income country. 
C)  of less than 2 percent. 
D)  that exceeds 50 percent. 
A)  that is more than its average tariff rate in 1930. 
B)  which is greater than any other high-income country. 
C)  of less than 2 percent. 
D)  that exceeds 50 percent.

Question 18

Free trade ________ living standards by ________ economic efficiency.

Accepted Answer

A)  raises; increasing 
B)  lowers; decreasing 
C)  raises; equalizing 
D)  lowers; eliminating 
A)  raises; increasing 
B)  lowers; decreasing 
C)  raises; equalizing 
D)  lowers; eliminating

Question 19

In 2010,________ of Caterpillar's sales were outside the United States.

Accepted Answer

A)  only 12 percent 
B)  more than two-thirds 
C)  less than half 
D)  95 percent 
A)  only 12 percent 
B)  more than two-thirds 
C)  less than half 
D)  95 percent

Question 20

________ raised average tariff rates by over 50 percent in the United States in 1930.

Accepted Answer

A)  The GATT 
B)  The WTO 
C)  NAFTA 
D)  The Smoot-Hawley Tariff 
A)  The GATT 
B)  The WTO 
C)  NAFTA 
D)  The Smoot-Hawley Tariff

In 1995 ,which was established in 1948,was replaced by .

If Canada has a comparative advantage relative to Mexico in the production of timber,then

One reason for the success that firms have in getting the government to erect barriers to foreign competition is that jobs lost to foreign competition are easy to identify but jobs created by foreign trade are often hard to identify.Which of the following is a second reason?

A situation in which a country does not trade with other countries is called

In 1930,the U.S.government attempted to help domestic firms that were harmed by the Great Depression by

When Roxanne,a U.S.citizen,purchases a designer dress from Barneys of New York that was made in Milan,the purchase is

In the 1930s,the United States charged an average tariff rate .Today,the rate is .

Exports are domestically produced goods and services

The intention of the "Buy American" provision in the 2009 stimulus bill was to

Suppose that American firms claim that protectionism in Canada is on the rise as the Canadian government attempts to protect its infant industries.This protectionism will cause the greatest harm to

In order to avoid the imposition of other types of trade barriers,foreign producers will sometimes agree to voluntary export restraints.With voluntary export restraints,foreign producers

Tastes for products such as beer differ.As a result

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.

What are the four main sources of comparative advantage? Briefly explain each source and provide examples.

Figure 9-2 Suppose the U.S. government imposes a $0.40 per pound tariff on rice imports. Figure 9-2 shows the impact of this tariff. -Refer to Figure 9-2.The tariff revenue collected by the government equals the area

Today,the United States charged an average tariff rate

Free trade living standards by economic efficiency.

In 2010,________ of Caterpillar's sales were outside the United States.

________ raised average tariff rates by over 50 percent in the United States in 1930.

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

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 7: Comparative Advantage and the Gains From International Trade

In 1995 ________,which was established in 1948,was replaced by ________.

If Canada has a comparative advantage relative to Mexico in the production of timber,then

One reason for the success that firms have in getting the government to erect barriers to foreign competition is that jobs lost to foreign competition are easy to identify but jobs created by foreign trade are often hard to identify.Which of the following is a second reason?

A situation in which a country does not trade with other countries is called

In 1930,the U.S.government attempted to help domestic firms that were harmed by the Great Depression by

When Roxanne,a U.S.citizen,purchases a designer dress from Barneys of New York that was made in Milan,the purchase is

In the 1930s,the United States charged an average tariff rate ________.Today,the rate is ________.

Exports are domestically produced goods and services

The intention of the "Buy American" provision in the 2009 stimulus bill was to

Suppose that American firms claim that protectionism in Canada is on the rise as the Canadian government attempts to protect its infant industries.This protectionism will cause the greatest harm to

In order to avoid the imposition of other types of trade barriers,foreign producers will sometimes agree to voluntary export restraints.With voluntary export restraints,foreign producers

Tastes for products such as beer differ.As a result

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.

What are the four main sources of comparative advantage? Briefly explain each source and provide examples.

Figure 9-2 Suppose the U.S. government imposes a $0.40 per pound tariff on rice imports. Figure 9-2 shows the impact of this tariff. -Refer to Figure 9-2.The tariff revenue collected by the government equals the area

Today,the United States charged an average tariff rate

Free trade ________ living standards by ________ economic efficiency.

In 2010,________ of Caterpillar's sales were outside the United States.

________ raised average tariff rates by over 50 percent in the United States in 1930.

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

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

In 1995 ,which was established in 1948,was replaced by .

In the 1930s,the United States charged an average tariff rate .Today,the rate 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.

Free trade living standards by economic efficiency.