Question 1

A government-imposed restriction on the quantity of a good that can be imported is

Accepted Answer

A) an embargo. 
B) a protective tariff. 
C) a quota. 
D) a health restriction. 
A) an embargo. 
B) a protective tariff. 
C) a quota. 
D) a health restriction.

Question 2

Why do free trade proponents dislike rules of origin in trade agreements?

Accepted Answer

A) It decreases the amount of international trade in the world. 
B) It increases the amount of international trade in the world. 
C) It decreases incentives for trade diversion. 
D) It increases incentives for trade deflection. 
A) It decreases the amount of international trade in the world. 
B) It increases the amount of international trade in the world. 
C) It decreases incentives for trade diversion. 
D) It increases incentives for trade deflection.

Question 3

Restrictions on imports

Accepted Answer

A) usually have no permanent effects on an economy. 
B) is the best way to increase exports. 
C) protect United States jobs. 
D) eventually reduce exports. 
A) usually have no permanent effects on an economy. 
B) is the best way to increase exports. 
C) protect United States jobs. 
D) eventually reduce exports.

Question 4

Maximum Feasible Hourly Production Rates (in Tons) of Either
 Cookies or Coffee Using All Available Resources
$$\begin{array}{l}
\begin{array} {lll } 
Product & Country Alpha & Country Beta \
\hline Cookies & 3 & 8 \
Coffee & 9 & 4
\end{array}
\end{array}$$
-Use the above table.Assuming constant opportunity costs,the opportunity cost of producing cookies in country Alpha is ________,and the opportunity cost of producing cookies in country Beta is ________.

Accepted Answer

A) 0.33 ton of coffee; 2 tons of coffee 
B) 3 tons of coffee; 0.5 ton of coffee 
C) 0.375 ton of cookies; 2.25 tons of coffee 
D) 2.67 tons of coffee; 0.44 ton of cookies 
A) 0.33 ton of coffee; 2 tons of coffee 
B) 3 tons of coffee; 0.5 ton of coffee 
C) 0.375 ton of cookies; 2.25 tons of coffee 
D) 2.67 tons of coffee; 0.44 ton of cookies

Question 5

Discuss the relationship between world trade and world Gross Domestic Product (GDP)since the early 1950s.

Accepted Answer

Both world trade and world GDP have grow

Question 6

A legal limit on the amount of sugar imported into the United States is

Accepted Answer

A) a tariff. 
B) a subsidy. 
C) a quota. 
D) a voluntary import restriction. 
A) a tariff. 
B) a subsidy. 
C) a quota. 
D) a voluntary import restriction.

Question 7

How can comparative advantage yield gains from trade?

Accepted Answer

Comparative advantage refers to the abil

Question 8

Maximum Feasible Hourly Production Rates (in Tons) of Either
 Wine or Beef Using All Available Resources
$$\begin{array}{l}
\begin{array} {lll } 
Product &Argentina & France \
\hline Wine (gallons)& 30 & 60 \
Beef (pounds) &10 & 30
\end{array}
\end{array}$$
-Use the above table.Assuming constant opportunity costs,the opportunity cost of producing a gallon of wine in France is

Accepted Answer

A) 0.33 pound of beef. 
B) 0.5 pound of beef. 
C) 2 pounds of beef. 
D) 3 pounds of beef. 
A) 0.33 pound of beef. 
B) 0.5 pound of beef. 
C) 2 pounds of beef. 
D) 3 pounds of beef.

Question 9

A significant advantage to being a member of a trade bloc is

Accepted Answer

A) higher tariff collections from member countries. 
B) reduced or eliminated tariffs among member countries. 
C) reduced tariff rates only for the largest member countries. 
D) None of the above; there is no economic advantage to a trade bloc. 
A) higher tariff collections from member countries. 
B) reduced or eliminated tariffs among member countries. 
C) reduced tariff rates only for the largest member countries. 
D) None of the above; there is no economic advantage to a trade bloc.

Question 10

If there are two goods and two countries,then one country can have

Accepted Answer

A) a comparative advantage in only one good. 
B) a comparative advantage in both goods. 
C) a higher opportunity cost of producing both goods. 
D) a lower opportunity cost of producing both goods. 
A) a comparative advantage in only one good. 
B) a comparative advantage in both goods. 
C) a higher opportunity cost of producing both goods. 
D) a lower opportunity cost of producing both goods.

Question 11

An international agreement established in 1947 to further world trade by reducing barriers and tariffs is the

Accepted Answer

A) World Trade Organization. 
B) European Union. 
C) General Agreement on Tariffs and Trade. 
D) North American Free Trade Agreement. 
A) World Trade Organization. 
B) European Union. 
C) General Agreement on Tariffs and Trade. 
D) North American Free Trade Agreement.

Question 12

In comparing tariffs and quotas,we know that

Accepted Answer

A) neither raises revenues for the federal government. 
B) both raise revenues for the federal government. 
C) tariffs raise revenues for the federal government,while quotas do not. 
D) quotas raise revenues for the federal government,while tariffs do not. 
A) neither raises revenues for the federal government. 
B) both raise revenues for the federal government. 
C) tariffs raise revenues for the federal government,while quotas do not. 
D) quotas raise revenues for the federal government,while tariffs do not.

Question 13

Maximum Feasible Hourly Production Rates for Either
Food or Cloth Using All Available Resources $$\begin{array} { l c r } 
\hline& \text { Food } & \text { Cloth } \
\hline \text { U.S. } & 4 & 3 \
\text { Mexico } & 12 & 6 \
\hline
\end{array}$$
-Using the data in the above table and assuming constant opportunity costs,it is correct to state that

Accepted Answer

A) the United States has a comparative advantage in producing cloth. 
B) Mexico has an absolute advantage in producing both food and cloth. 
C) the United States has a comparative advantage in producing both food and cloth. 
D) Mexico has a comparative advantage in producing cloth. 
A) the United States has a comparative advantage in producing cloth. 
B) Mexico has an absolute advantage in producing both food and cloth. 
C) the United States has a comparative advantage in producing both food and cloth. 
D) Mexico has a comparative advantage in producing cloth.

Question 14

Comparative advantage is based on the

Accepted Answer

A) concept that some countries are superior to others. 
B) concept of absolute advantage of producing goods in different countries. 
C) concept of relative opportunity cost of producing goods in different countries. 
D) concept that some countries are better endowed with natural resources. 
A) concept that some countries are superior to others. 
B) concept of absolute advantage of producing goods in different countries. 
C) concept of relative opportunity cost of producing goods in different countries. 
D) concept that some countries are better endowed with natural resources.

Question 15

In international trade the term "dumping" means

Accepted Answer

A) price discrimination by domestic producers. 
B) selling goods in a foreign market for a price less than on the home market. 
C) selling goods in a home market for a price less than on the foreign market. 
D) selling goods on the black market to avoid paying taxes. 
A) price discrimination by domestic producers. 
B) selling goods in a foreign market for a price less than on the home market. 
C) selling goods in a home market for a price less than on the foreign market. 
D) selling goods on the black market to avoid paying taxes.

Question 16

Consider the following information,and assume that opportunity costs are constant: On one hand,residents of Country A can produce more corn in a year than residents of Country B,but they can produce computers at a lower opportunity cost than residents of country B.On the other hand,residents of country B can produce more computers in a year than residents of Country A,but they can produce corn at a lower opportunity cost than residents of country A.It can be concluded that residents of

Accepted Answer

A) Country A should produce corn and trade it for computers produced in Country B. 
B) Country B should produce computers and trade them for corn produced in Country B. 
C) Country A should produce computers and trade them for corn produced in Country B. 
D) both countries should choose not to trade. 
A) Country A should produce corn and trade it for computers produced in Country B. 
B) Country B should produce computers and trade them for corn produced in Country B. 
C) Country A should produce computers and trade them for corn produced in Country B. 
D) both countries should choose not to trade.

Question 17

Which of the following are regulations that nations in regional trade blocs establish to delineate product categories eligible for trading preferences?

Accepted Answer

A) trade quotas 
B) trade tariffs 
C) rules of law 
D) rules of origin 
A) trade quotas 
B) trade tariffs 
C) rules of law 
D) rules of origin

Question 18

Maximum Feasible Hourly Production Rates (in Tons) of Either
 Wine or Beef Using All Available Resources
$$\begin{array}{l}
\begin{array} {lll } 
Product &Argentina & France \
\hline Wine (gallons)& 30 & 60 \
Beef (pounds) &10 & 30
\end{array}
\end{array}$$
-Use the above table.Assuming constant opportunity costs,a comparative advantage in producing wine is possessed by

Accepted Answer

A) neither Argentina or France. 
B) both Argentina and France. 
C) Argentina. 
D) France. 
A) neither Argentina or France. 
B) both Argentina and France. 
C) Argentina. 
D) France.

Question 19

The World Trade Organization is a successor organization to the

Accepted Answer

A) United Nations. 
B) World Bank. 
C) International Court of Justice. 
D) GATT. 
A) United Nations. 
B) World Bank. 
C) International Court of Justice. 
D) GATT.

Question 20

If Kami can produce 40 tablets or 30 radios during a month's time,while Sally can produce 10 tablets or 20 radios,then it is correct to state that

Accepted Answer

A) Kami has a comparative advantage in producing tablets. 
B) Kami has a comparative advantage in producing both tablets and radios. 
C) Sally has a comparative advantage in producing both tablets and radios. 
D) Sally has an absolute advantage in tablets. 
A) Kami has a comparative advantage in producing tablets. 
B) Kami has a comparative advantage in producing both tablets and radios. 
C) Sally has a comparative advantage in producing both tablets and radios. 
D) Sally has an absolute advantage in tablets.

A government-imposed restriction on the quantity of a good that can be imported is

Why do free trade proponents dislike rules of origin in trade agreements?

Restrictions on imports

Discuss the relationship between world trade and world Gross Domestic Product (GDP)since the early 1950s.

A legal limit on the amount of sugar imported into the United States is

How can comparative advantage yield gains from trade?

Maximum Feasible Hourly Production Rates (in Tons) of Either Wine or Beef Using All Available Resources Product Argentina France Wine(gallons) 30 60 Beef(pounds) 10 30 -Use the above table.Assuming constant opportunity costs,the opportunity cost of producing a gallon of wine in France is

A significant advantage to being a member of a trade bloc is

If there are two goods and two countries,then one country can have

An international agreement established in 1947 to further world trade by reducing barriers and tariffs is the

In comparing tariffs and quotas,we know that

Maximum Feasible Hourly Production Rates for Either Food or Cloth Using All Available Resources Food Cloth U.S. 4 3 Mexico 12 6 -Using the data in the above table and assuming constant opportunity costs,it is correct to state that

Comparative advantage is based on the

In international trade the term "dumping" means

Which of the following are regulations that nations in regional trade blocs establish to delineate product categories eligible for trading preferences?

Maximum Feasible Hourly Production Rates (in Tons) of Either Wine or Beef Using All Available Resources Product Argentina France Wine(gallons) 30 60 Beef(pounds) 10 30 -Use the above table.Assuming constant opportunity costs,a comparative advantage in producing wine is possessed by

The World Trade Organization is a successor organization to the

If Kami can produce 40 tablets or 30 radios during a month's time,while Sally can produce 10 tablets or 20 radios,then it is correct to state that

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Demand and Supply Elasticity

Consumer Choice

Rents, profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, poverty, and Health Care

Environmental Economics

Exchange Rates and the Balance of Payments

Filters

Exam 19: Comparative Advantage and the Open Economy

A government-imposed restriction on the quantity of a good that can be imported is

Why do free trade proponents dislike rules of origin in trade agreements?

Restrictions on imports

Discuss the relationship between world trade and world Gross Domestic Product (GDP)since the early 1950s.

A legal limit on the amount of sugar imported into the United States is

How can comparative advantage yield gains from trade?

Maximum Feasible Hourly Production Rates (in Tons) of Either Wine or Beef Using All Available Resources Product Argentina France Wine(gallons) 30 60 Beef(pounds) 10 30 -Use the above table.Assuming constant opportunity costs,the opportunity cost of producing a gallon of wine in France is

A significant advantage to being a member of a trade bloc is

If there are two goods and two countries,then one country can have

An international agreement established in 1947 to further world trade by reducing barriers and tariffs is the

In comparing tariffs and quotas,we know that

Maximum Feasible Hourly Production Rates for Either Food or Cloth Using All Available Resources Food Cloth U.S. 4 3 Mexico 12 6 -Using the data in the above table and assuming constant opportunity costs,it is correct to state that

Comparative advantage is based on the

In international trade the term "dumping" means

Which of the following are regulations that nations in regional trade blocs establish to delineate product categories eligible for trading preferences?

Maximum Feasible Hourly Production Rates (in Tons) of Either Wine or Beef Using All Available Resources Product Argentina France Wine(gallons) 30 60 Beef(pounds) 10 30 -Use the above table.Assuming constant opportunity costs,a comparative advantage in producing wine is possessed by

The World Trade Organization is a successor organization to the

If Kami can produce 40 tablets or 30 radios during a month's time,while Sally can produce 10 tablets or 20 radios,then it is correct to state that

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Demand and Supply Elasticity

Consumer Choice

Rents, profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, poverty, and Health Care

Environmental Economics

Exchange Rates and the Balance of Payments

Filters