Question 1

The biggest factor in the 1990s productivity boom in the United States was:

Accepted Answer

A)   information technology.
B)   agriculture.
C)   education.
D)   technological advance in the retail sector.E) B) and C)
F) A) and C)

Question 2

Which statement is TRUE?

Accepted Answer

A)   Although inefficient, trade restrictions are effective at reducing child labor.
B)   Most child labor around the world takes place in factories that export products.
C)   Rising real GDP per capita has been an important force in reducing child labor.
D)   About 50% of the world's children aged 10 to 14 work.E) All of the above
F) B) and C)

Question 3

Table: Semiconductors

Accepted Answer

A)   export 550 semiconductors.
B)   export 150 semiconductors.
C)   import 550 semiconductors.
D)   import 150 semiconductors.E) B) and D)
F) None of the above

Question 4

What are the arguments in favor of trade restrictions, and what are their counterarguments? According to most economists, do these arguments really justify trade restrictions? Explain.

Accepted Answer

Arguments mentioned in the text include ...

Question 5

A tariff is a:

Accepted Answer

A)   tax credit for domestic exports.
B)   tax on imports.
C)   temporary grant of monopoly rights.
D)   renewable subsidy to the energy industry.E) A) and B)
F) A) and C)

Question 6

Use the following to answer questions:
Figure: Foreign Trade 2 
-(Figure: Foreign Trade 2)  Refer to the figure. What is the dollar value of the deadweight loss created as a result of prohibiting trade in this market?

Accepted Answer

A)   $2,500
B)   $10,000
C)   $7,500
D)   $5,000E) A) and B)
F) None of the above

Question 7

Use the following to answer questions:
Figure: Trade 
-(Figure: Trade)  Refer to the figure. With free international trade, the country in this figure will find that the good:

Accepted Answer

A)   becomes cheaper for domestic consumers.
B)   becomes more expensive for domestic consumers.
C)   does not change in price.
D)   may get cheaper or more expensive for domestic consumers but it is impossible to tell.E) B) and C)
F) A) and C)

Question 8

Which of the following statements regarding trade is NOT true?

Accepted Answer

A)   Trade increases productivity through specialization and production according to comparative advantage.
B)   Trade raises the price of goods for both trading partners.
C)   Trade increases productivity through specialization and the division of knowledge.
D)   Trade makes people better off when preferences differ.E) A) and B)
F) A) and C)

Question 9

As GDP per capita increases, child labor tends to

Accepted Answer

A)   increase.
B)   decrease.
C)   remain the same.
D)   change unpredictably.E) C) and D)
F) B) and C)

Question 10

The losses from trade protection include:

Accepted Answer

A)   deadweight loss only.
B)   wasted resources only.
C)   neither deadweight loss nor wasted resources.
D)   both deadweight loss and wasted resources.E) B) and D)
F) A) and D)

Question 11

Use the following to answer questions:
Figure: International Trade 4 
-(Figure: International Trade 4)  Refer to the figure. If, in this figure, the government eliminated free trade, producer surplus would:

Accepted Answer

A)   increase by $18.
B)   increase by $50.
C)   decrease by $36.
D)   increase by $22.50.E) A) and B)
F) A) and D)

Question 12

Imposing a restrictive quota on the import of sugar will likely:

Accepted Answer

A)   increase the price of sugar and decrease the quantity consumed.
B)   increase the price of sugar and increase the quantity consumed.
C)   leave the price of sugar unchanged and decrease the quantity consumed.
D)   leave the price of sugar unchanged and increase the quantity consumed.E) A) and D)
F) A) and C)

Question 13

Import trade tends to ______ domestic quantity of a good exchanged.

Accepted Answer

A)   increase
B)   decrease
C)   hold constant
D)   have an indeterminate effect onE) A) and C)
F) A) and B)

Question 14

As a result of U.S. quotas on sugar imports, all of the following are true, EXCEPT:

Accepted Answer

A)   the United States pays about twice the world price for sugar.
B)   the gains to American producers are greater than the losses to American consumers.
C)   foreign sugar producers-mostly in poor countries-suffer.
D)   a small group of domestic sugar producers benefit.E) A) and D)
F) A) and B)

Question 15

Use the following to answer questions:
Figure: Foreign Trade 2 
-(Figure: Foreign Trade 2)  Refer to the figure. What is the dollar value of the consumer surplus that consumers could gain if the trade restriction were removed?

Accepted Answer

A)   $35,000
B)   $22,500
C)   $30,000
D)   $25,000E) C) and D)
F) B) and C)

Exam 9: International Trade

Use the following to answer questions: Figure: Foreign Trade 2 -(Figure: Foreign Trade 2) Refer to the figure. What is the dollar value of the consumer surplus that consumers could gain if the trade restriction were removed?

Correct Answer
verified

A tariff is a:

Correct Answer
verified

What are the arguments in favor of trade restrictions, and what are their counterarguments? According to most economists, do these arguments really justify trade restrictions? Explain.

Correct Answer
verified
Arguments mentioned in the text include ...
View Answer

Table: Semiconductors

Correct Answer
verified

The biggest factor in the 1990s productivity boom in the United States was:

Correct Answer
verified

Which of the following statements regarding trade is NOT true?

Correct Answer
verified

Which statement is TRUE?

Correct Answer
verified

Use the following to answer questions: Figure: Foreign Trade 2 -(Figure: Foreign Trade 2) Refer to the figure. What is the dollar value of the deadweight loss created as a result of prohibiting trade in this market?

Correct Answer
verified

As GDP per capita increases, child labor tends to

Correct Answer
verified

The losses from trade protection include:

Correct Answer
verified

Import trade tends to ______ domestic quantity of a good exchanged.

Correct Answer
verified

Use the following to answer questions: Figure: International Trade 4 -(Figure: International Trade 4) Refer to the figure. If, in this figure, the government eliminated free trade, producer surplus would:

Correct Answer
verified

As a result of U.S. quotas on sugar imports, all of the following are true, EXCEPT:

Correct Answer
verified

Imposing a restrictive quota on the import of sugar will likely:

Correct Answer
verified

Use the following to answer questions: Figure: Trade -(Figure: Trade) Refer to the figure. With free international trade, the country in this figure will find that the good:

Correct Answer
verified

Exam 9: International Trade

Use the following to answer questions: Figure: Foreign Trade 2 -(Figure: Foreign Trade 2) Refer to the figure. What is the dollar value of the consumer surplus that consumers could gain if the trade restriction were removed?

Correct AnswerverifiedShow Answer

A tariff is a:

Correct AnswerverifiedShow Answer

What are the arguments in favor of trade restrictions, and what are their counterarguments? According to most economists, do these arguments really justify trade restrictions? Explain.

Correct AnswerverifiedArguments mentioned in the text include ...View AnswerShow Answer

Table: Semiconductors

Correct AnswerverifiedShow Answer

The biggest factor in the 1990s productivity boom in the United States was:

Correct AnswerverifiedShow Answer

Which of the following statements regarding trade is NOT true?

Correct AnswerverifiedShow Answer

Which statement is TRUE?

Correct AnswerverifiedShow Answer

Use the following to answer questions: Figure: Foreign Trade 2 -(Figure: Foreign Trade 2) Refer to the figure. What is the dollar value of the deadweight loss created as a result of prohibiting trade in this market?

Correct AnswerverifiedShow Answer

As GDP per capita increases, child labor tends to

Correct AnswerverifiedShow Answer

The losses from trade protection include:

Correct AnswerverifiedShow Answer

Import trade tends to ______ domestic quantity of a good exchanged.

Correct AnswerverifiedShow Answer

Use the following to answer questions: Figure: International Trade 4 -(Figure: International Trade 4) Refer to the figure. If, in this figure, the government eliminated free trade, producer surplus would:

Correct AnswerverifiedShow Answer

As a result of U.S. quotas on sugar imports, all of the following are true, EXCEPT:

Correct AnswerverifiedShow Answer

Imposing a restrictive quota on the import of sugar will likely:

Correct AnswerverifiedShow Answer

Use the following to answer questions: Figure: Trade -(Figure: Trade) Refer to the figure. With free international trade, the country in this figure will find that the good:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified
Arguments mentioned in the text include ...
View Answer

Correct Answer
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Correct Answer
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