Question 1

The accompanying table gives domestic supply and demand schedules for a product. Suppose that the world price of the product is $1.  If this nation were entirely closed to international trade, equilibrium price and quantity would be

Accepted Answer

A)  $5 and 2 units.
B)  $1 and 1 unit.
C)  $4 and 4 units.
D)  $3 and 7 units.E) A) and B)
F) A) and C)

Question 2

d) , and Column 3 is the quantity supplied domestically (Qₛd) . If Country X opens itself up to international trade, at what world price will it begin exporting some units of the product? A) any price above $9 B) any price below $9 C) any price above $15 D) any price below $15" class="answers-bank-image d-inline" rel="preload" > The accompanying table gives data for Country X. Column 1 of the table is the price of a product. Column 2 is the quantity demanded domestically (Qd) , and Column 3 is the quantity supplied domestically (Qₛd) . If Country X opens itself up to international trade, at what world price will it begin exporting some units of the product?

Accepted Answer

A)  any price above $9
B)  any price below $9
C)  any price above $15
D)  any price below $15E) None of the above
F) B) and D)

Question 3

A voluntary export restraint (VER)is similar to an import quota, except that the former benefits the foreign producers while the latter benefits the domestic producers.

Accepted Answer

A) True 
 B)False

Question 4

d is domestic quantity demanded. Assuming that Alpha and Beta are the only two nations in the world, at the equilibrium world price, A) both nations will export steel. B) both nations will import steel. C) Alpha will export steel and Beta will import steel. D) Beta will export steel and Alpha will import steel." class="answers-bank-image d-inline" rel="preload" > The accompanying tables show data for the hypothetical nations of Alpha and Beta. Qₛis domestic quantity supplied, and Qd is domestic quantity demanded. Assuming that Alpha and Beta are the only two nations in the world, at the equilibrium world price,

Accepted Answer

A)  both nations will export steel.
B)  both nations will import steel.
C)  Alpha will export steel and Beta will import steel.
D)  Beta will export steel and Alpha will import steel.E) B) and C)
F) A) and D)

Question 5

d) , and Column 3 is the quantity supplied domestically (Qₛd) . If Country X opens itself up to international trade, at what world price will it begin exporting some units of the product? A) any price below $1.00 B) any price above $1.00 C) any price below $3.00 D) any price above $3.00" class="answers-bank-image d-inline" rel="preload" > The accompanying table gives data for Country X. Column 1 of the table is the price of a product. Column 2 is the quantity demanded domestically (Qd) , and Column 3 is the quantity supplied domestically (Qₛd) . If Country X opens itself up to international trade, at what world price will it begin exporting some units of the product?

Accepted Answer

A)  any price below $1.00
B)  any price above $1.00
C)  any price below $3.00
D)  any price above $3.00E) A) and B)
F) B) and D)

Question 6

Which of the following products is a leading import of the United States?

Accepted Answer

A)  grains
B)  aircraft
C)  automobiles
D)  generating equipmentE) None of the above
F) C) and D)

Question 7

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 8

The accompanying table shows labor-productivity figures in two countries facing constant costs. It can be deduced that

Accepted Answer

A)  country A can produce more meat and houses than country B.
B)  country A has a comparative advantage in producing houses.
C)  country B has the absolute advantage in producing houses.
D)  country B has a comparative advantage in producing houses.E) C) and D)
F) A) and D)

Question 9

The greatest benefit to an economy from international trade is

Accepted Answer

A)  greater employment in the export sector of the economy.
B)  the economic power it gives a nation over other countries.
C)  full employment of its labor force.
D)  consumption beyond domestic production possibilities.E) B) and C)
F) B) and D)

Question 10

In 2018, the United States

Accepted Answer

A)  imported more services than it exported.
B)  imported more goods than it exported.
C)  traded mainly with developing nations such as Mexico and India.
D)  had a small trade surplus in goods and services.E) B) and C)
F) A) and D)

Question 11

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) C) and D)
F) B) and C)

Question 12

Frederic Bastiat's satire clearly illustrates that

Accepted Answer

A)  French candlemakers would benefit from government restrictions on trade.
B)  French consumers would benefit from a tariff on U.S. candles.
C)  the arguments in favor of trade protectionism can sometimes be ridiculous.
D)  the arguments in favor of protectionism are sometimes well-founded.E) C) and D)
F) A) and B)

Question 13

An import-licensing requirement or import restrictions pertaining to the product quality and safety are examples of

Accepted Answer

A)  protective tariffs.
B)  nontariff barriers.
C)  voluntary export restrictions.
D)  quotas on imported products.E) A) and D)
F) B) and C)

Question 14

Export supply curves are __________________; import demand curves are ___________________.

Accepted Answer

A)  horizontal; vertical
B)  vertical; horizontal
C)  downsloping; upsloping
D)  upsloping; downslopingE) None of the above
F) A) and B)

Question 15

Country A limits other nation's exports to Country A to 1,000 tons of coal annually. This is an example of a(n)

Accepted Answer

A)  protective tariff.
B)  export subsidy.
C)  import quota.
D)  voluntary export restriction.E) B) and C)
F) A) and B)

Question 16

When a tariff or quota on a product is removed, this policy action

Accepted Answer

A)  benefits domestic producers of the product.
B)  benefits consumers of the product.
C)  benefits the government.
D)  hurts nations exporting the product.E) None of the above
F) All of the above

Question 17

Bastiat's "Petition of the Candlemakers," a classic reading in economics, presents a powerful argument in favor of protectionism.

Accepted Answer

A) True 
 B)False

Question 18

A nation's export supply curve for a specific product

Accepted Answer

A)  is upsloping.
B)  shows the amount of the product it will export at prices below its domestic price.
C)  lies below its import demand curve for the product.
D)  depends on domestic supply of the product, but not on domestic demand.E) None of the above
F) B) and C)

Question 19

d is domestic quantity demanded. Assuming that Alpha and Beta are the only two nations in the world, the equilibrium world price of steel must be between A) $5 and $4. B) $4 and $3. C) $3 and $2. D) $2 and $1." class="answers-bank-image d-inline" rel="preload" > The accompanying tables show data for the hypothetical nations of Alpha and Beta. Qₛis domestic quantity supplied, and Qd is domestic quantity demanded. Assuming that Alpha and Beta are the only two nations in the world, the equilibrium world price of steel must be between

Accepted Answer

A)  $5 and $4.
B)  $4 and $3.
C)  $3 and $2.
D)  $2 and $1.E) B) and D)
F) A) and D)

Question 20

Refer to the accompanying table for a certain product's market in Econland. If the world price of the product were $6 and an import quota of 400 units were imposed on the product, then the equilibrium price in Econland would be

Accepted Answer

A)  $6 and the total quantity available in Econland would be 2,200 units.
B)  $6 and the total quantity available in Econland would be 1,800 units.
C)  $7 and the total quantity available in Econland would be 2,000 units.
D)  $7 and the total quantity available in Econland would be 1,800 units.E) B) and C)
F) None of the above

Exam 26: International Trade

The accompanying table gives domestic supply and demand schedules for a product. Suppose that the world price of the product is $1. If this nation were entirely closed to international trade, equilibrium price and quantity would be

Correct Answer
verified

An export subsidy for a product will benefit

Correct Answer
verified

A nation's export supply curve for a specific product

Correct Answer
verified

The greatest benefit to an economy from international trade is

Correct Answer
verified

The accompanying tables show data for the hypothetical nations of Alpha and Beta. Qₛis domestic quantity supplied, and Q_d is domestic quantity demanded. Assuming that Alpha and Beta are the only two nations in the world, at the equilibrium world price,

Correct Answer
verified

Frederic Bastiat's satire clearly illustrates that

Correct Answer
verified

Which of the following products is a leading import of the United States?

Correct Answer
verified

The accompanying tables show data for the hypothetical nations of Alpha and Beta. Qₛis domestic quantity supplied, and Q_d is domestic quantity demanded. Assuming that Alpha and Beta are the only two nations in the world, the equilibrium world price of steel must be between

Correct Answer
verified

An import-licensing requirement or import restrictions pertaining to the product quality and safety are examples of

Correct Answer
verified

Correct Answer
verified

A voluntary export restraint (VER)is similar to an import quota, except that the former benefits the foreign producers while the latter benefits the domestic producers.

Correct Answer
verified

Export supply curves are ; import demand curves are _.

Correct Answer
verified

Correct Answer
verified

In 2018, the United States

Correct Answer
verified

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

Correct Answer
verified

When a tariff or quota on a product is removed, this policy action

Correct Answer
verified

Country A limits other nation's exports to Country A to 1,000 tons of coal annually. This is an example of a(n)

Correct Answer
verified

Bastiat's "Petition of the Candlemakers," a classic reading in economics, presents a powerful argument in favor of protectionism.

Correct Answer
verified

Refer to the accompanying table for a certain product's market in Econland. If the world price of the product were $6 and an import quota of 400 units were imposed on the product, then the equilibrium price in Econland would be

Correct Answer
verified

The accompanying table shows labor-productivity figures in two countries facing constant costs. It can be deduced that

Correct Answer
verified

Exam 26: International Trade

The accompanying table gives domestic supply and demand schedules for a product. Suppose that the world price of the product is $1. If this nation were entirely closed to international trade, equilibrium price and quantity would be

Correct AnswerverifiedShow Answer

An export subsidy for a product will benefit

Correct AnswerverifiedShow Answer

A nation's export supply curve for a specific product

Correct AnswerverifiedShow Answer

The greatest benefit to an economy from international trade is

Correct AnswerverifiedShow Answer

The accompanying tables show data for the hypothetical nations of Alpha and Beta. Qₛis domestic quantity supplied, and Qd is domestic quantity demanded. Assuming that Alpha and Beta are the only two nations in the world, at the equilibrium world price,

Correct AnswerverifiedShow Answer

Frederic Bastiat's satire clearly illustrates that

Correct AnswerverifiedShow Answer

Which of the following products is a leading import of the United States?

Correct AnswerverifiedShow Answer

The accompanying tables show data for the hypothetical nations of Alpha and Beta. Qₛis domestic quantity supplied, and Qd is domestic quantity demanded. Assuming that Alpha and Beta are the only two nations in the world, the equilibrium world price of steel must be between

Correct AnswerverifiedShow Answer

An import-licensing requirement or import restrictions pertaining to the product quality and safety are examples of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A voluntary export restraint (VER)is similar to an import quota, except that the former benefits the foreign producers while the latter benefits the domestic producers.

Correct AnswerverifiedShow Answer

Export supply curves are __________________; import demand curves are ___________________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In 2018, the United States

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

When a tariff or quota on a product is removed, this policy action

Correct AnswerverifiedShow Answer

Country A limits other nation's exports to Country A to 1,000 tons of coal annually. This is an example of a(n)

Correct AnswerverifiedShow Answer

Bastiat's "Petition of the Candlemakers," a classic reading in economics, presents a powerful argument in favor of protectionism.

Correct AnswerverifiedShow Answer

Refer to the accompanying table for a certain product's market in Econland. If the world price of the product were $6 and an import quota of 400 units were imposed on the product, then the equilibrium price in Econland would be

Correct AnswerverifiedShow Answer

The accompanying table shows labor-productivity figures in two countries facing constant costs. It can be deduced that

Correct AnswerverifiedShow Answer

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The accompanying tables show data for the hypothetical nations of Alpha and Beta. Qₛis domestic quantity supplied, and Q_d is domestic quantity demanded. Assuming that Alpha and Beta are the only two nations in the world, at the equilibrium world price,

Correct Answer
verified

Correct Answer
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Correct Answer
verified

The accompanying tables show data for the hypothetical nations of Alpha and Beta. Qₛis domestic quantity supplied, and Q_d is domestic quantity demanded. Assuming that Alpha and Beta are the only two nations in the world, the equilibrium world price of steel must be between

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Export supply curves are ; import demand curves are _.

Correct Answer
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Correct Answer
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