Question 1

Tariffs and import quotas would benefit the following groups, except

Accepted Answer

A)  consumers of the product.
B)  domestic producers of the product.
C)  workers in domestic firms producing the product.
D)  the government of the importing country.E) A) and B)
F) A) and C)

Question 2

Which of the following countries had the smallest share of exports as a percentage of GDP in 2014?

Accepted Answer

A)  Canada
B)  France
C)  United Kingdom
D)  United StatesE) None of the above
F) All of the above

Question 3

As of 2015, how many European nations belonged to the European Union (EU) ?

Accepted Answer

A)  All of the nations of Europe automatically belong to the EU.
B)  17
C)  28
D)  10E) All of the above
F) B) and C)

Question 4

Which nation had the largest share of world exports in 2014?

Accepted Answer

A)  Japan
B)  Germany
C)  China
D)  United StatesE) C) and D)
F) B) and D)

Question 5

The terms of trade will favor a larger nation over a smaller nation.

Accepted Answer

A) True 
 B)False

Question 6

If the world price of a product rises relative to the domestic price in a trading nation, then, for that product,

Accepted Answer

A)  exports and imports will increase.
B)  exports and imports will decrease.
C)  exports will increase and imports will decrease.
D)  imports will increase and exports will decrease.E) A) and D)
F) B) and C)

Question 7

A nation's export supply curve is downsloping, and its import demand curve is upsloping.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is an example of a land-intensive commodity?

Accepted Answer

A)  chemicals
B)  autos
C)  watches
D)  woolE) A) and B)
F) C) and D)

Question 9

Which of the following statements is false?

Accepted Answer

A)  Studies show that developing nations that have relied on import restrictions to protect domestic industries have had higher growth rates than similar nations pursuing more open economic policies.
B)  The U.S.Constitution forbids individual states from levying tariffs.
C)  The high tariffs of the Smoot-Hawley Act of 1930 and the retaliation they caused worsened the Great Depression.
D)  The European Union has enhanced prosperity in Western Europe.E) A) and B)
F) All of the above

Question 10

A key difference between import quotas and voluntary export restraints (VERs)  is that the

Accepted Answer

A)  domestic government administers the former, whereas the foreign government administers the latter.
B)  foreign government administers the former, whereas the domestic government administers the latter.
C)  one is a tax, whereas the other is a quantity limit.
D)  one raises the price of the imported product involved, whereas the other one does not.E) None of the above
F) B) and C)

Question 11

Tariffs and quotas are costly to consumers because

Accepted Answer

A)  the price of the imported good falls.
B)  the supply of the imported good increases.
C)  import competition increases for domestic goods.
D)  consumers have to switch to higher-priced domestic goods.E) All of the above
F) A) and B)

Question 12

Economists generally view offshoring as detrimental to the U.S.economy.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is a valid counterargument to a call for higher tariffs "to save U.S.jobs"?

Accepted Answer

A)  The government needs to protect U.S.workers from the dumping of foreign products.
B)  Strategic trade policy calls for equal treatment of all trading nations so that they will have the same competitive conditions.
C)  U.S.firms and workers must be protected from the ruinous competition of nations where wages for workers are low.
D)  Imports may eliminate some U.S.jobs, but they create others, so they may have little or no effect on employment.E) B) and C)
F) None of the above

Question 14

An export subsidy for a product will benefit

Accepted Answer

A)  domestic consumers of the product.
B)  foreign producers of the product.
C)  foreign consumers of the product.
D)  the domestic taxpayers.E) A) and C)
F) All of the above

Question 15

Globalization of resource markets has resulted in the business practice of offshoring, which involves

Accepted Answer

A)  only an outflow of jobs away from the U.S.
B)  no possible expansion of jobs in the U.S.
C)  huge losses to consumers in the U.S.
D)  both an outflow as well as an inflow of jobs in the U.S.E) None of the above
F) B) and D)

Question 16

Import tariffs benefit the consumers of the product involved.

Accepted Answer

A) True 
 B)False

Question 17

A major difficulty with the argument that trade barriers are necessary because foreign workers are paid low wages is that

Accepted Answer

A)  labor costs and product prices are not related.
B)  there is no discernible relationship between wage rates and labor productivity.
C)  wage rates and labor productivity are directly related.
D)  wage rates and labor productivity are inversely related.E) C) and D)
F) None of the above

Question 18

The nation that has a comparative advantage in a particular product will be the only world exporter of that product.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is an example of a capital-intensive commodity?

Accepted Answer

A)  clothing
B)  wool
C)  sunflower seeds
D)  chemicalsE) A) and D)
F) A) and B)

Question 20

In Germany, one worker can produce either one cuckoo clock or one beer mug.In Taiwan, one worker can produce either two cuckoo clocks or three beer mugs.Who has the comparative advantage in each good?

Accepted Answer

A)  Taiwan in both goods
B)  Taiwan in clocks and Germany in mugs
C)  Germany in clocks and Taiwan in mugs
D)  Germany in both goodsE) All of the above
F) C) and D)

Exam 40: International Trade

Tariffs and quotas are costly to consumers because

Correct AnswerverifiedShow Answer

Which nation had the largest share of world exports in 2014?

Correct AnswerverifiedShow Answer

A key difference between import quotas and voluntary export restraints (VERs) is that the

Correct AnswerverifiedShow Answer

Which of the following statements is false?

Correct AnswerverifiedShow Answer

An export subsidy for a product will benefit

Correct AnswerverifiedShow Answer

Which of the following is an example of a land-intensive commodity?

Correct AnswerverifiedShow Answer

Globalization of resource markets has resulted in the business practice of offshoring, which involves

Correct AnswerverifiedShow Answer

Economists generally view offshoring as detrimental to the U.S.economy.

Correct AnswerverifiedShow Answer

A nation's export supply curve is downsloping, and its import demand curve is upsloping.

Correct AnswerverifiedShow Answer

Which of the following is a valid counterargument to a call for higher tariffs "to save U.S.jobs"?

Correct AnswerverifiedShow Answer

As of 2015, how many European nations belonged to the European Union (EU) ?

Correct AnswerverifiedShow Answer

Import tariffs benefit the consumers of the product involved.

Correct AnswerverifiedShow Answer

If the world price of a product rises relative to the domestic price in a trading nation, then, for that product,

Correct AnswerverifiedShow Answer

Which of the following is an example of a capital-intensive commodity?

Correct AnswerverifiedShow Answer

A major difficulty with the argument that trade barriers are necessary because foreign workers are paid low wages is that

Correct AnswerverifiedShow Answer

The terms of trade will favor a larger nation over a smaller nation.

Correct AnswerverifiedShow Answer

The nation that has a comparative advantage in a particular product will be the only world exporter of that product.

Correct AnswerverifiedShow Answer

Tariffs and import quotas would benefit the following groups, except

Correct AnswerverifiedShow Answer

In Germany, one worker can produce either one cuckoo clock or one beer mug.In Taiwan, one worker can produce either two cuckoo clocks or three beer mugs.Who has the comparative advantage in each good?

Correct AnswerverifiedShow Answer

Which of the following countries had the smallest share of exports as a percentage of GDP in 2014?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified