Question 1

The effect of a tariff is

Accepted Answer

A)   an increase in consumers' surplus.
B)   a decrease in producers' surplus.
C)   an increase in tariff revenues for government.
D)   b and c
E)   all of the aboveF) B) and C)
G) C) and D)

Question 2

Suppose that a tariff is imposed on imported cheese.This will have the effect of __________ the quantity consumed of cheese,__________ consumers' surplus,and __________ the government's tariff revenues.

Accepted Answer

A)   increasing; increasing; increasing
B)   decreasing; decreasing; increasing
C)   increasing; decreasing; decreasing
D)   decreasing; increasing; increasing
E)   decreasing; increasing; decreasingF) A) and B)
G) C) and E)

Question 3

A tariff on avocadoes ______________ the price of avocadoes,_____________ consumers' surplus for avocado buyers,_______________ producers' surplus of avocado growers and __________________ tariff revenue.Because the loss to _____________ is more than the gain to ___________________,there is a net loss to society.

Accepted Answer

A)   raises; increases; decreases; generates; producers; consumers and government
B)   lowers; increases; decreases; does not generate; producers and government; consumers
C)   raises; increases; decreases; does not generate; producers and government; consumers
D)   raises; decreases; increases; generates; consumers; producers and governmentE) B) and C)
F) A) and D)

Question 4

The term outsourcing is used to describe work done for a company by individuals working for another company in a different country.

Accepted Answer

A) True 
 B)False

Question 5

Exhibit 34-2
 N.U.S.producers are better off if imports are __________; specifically,their producers' surplus changes by area __________. A)  permitted; PWDE B)  permitted; PN BDPW C)  prohibited; BDC D)  prohibited; PNBDPW" class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,the world price is PW.If there is a policy change such that imports are prohibited,the price becomes PN.U.S.producers are better off if imports are __________; specifically,their producers' surplus changes by area __________.

Accepted Answer

A)   permitted; PWDE
B)   permitted; PN BDPW
C)   prohibited; BDC
D)   prohibited; PNBDPWE) A) and D)
F) B) and D)

Question 6

Which of the following conditions makes it most likely for a quota to be imposed?

Accepted Answer

A)   The benefits of the quota are spread over many and the costs are concentrated on a few.
B)   The benefits of the quota are spread over many and the costs are spread over many.
C)   The benefits of the quota are spread over few and the costs are spread over many.
D)   The benefits of the quota are spread over few and the costs are spread over few.
E)   There is not enough information to answer the question.F) C) and D)
G) A) and E)

Question 7

Exhibit 34-9
 
-Refer to Exhibit 34-9.In the no specialization-no trade case,suppose country X produces and consumes 100 units of good A and 20 units of good B.Country Y produces and consumes 20 units of good A and 60 units of good B.If the two countries specialize and trade,and the actual amounts traded are 125 units of good A for 25 units of good B,how many more units of good A will country X consume by specializing and trading?

Accepted Answer

A)   75
B)   25
C)   15
D)   105
E)   50F) B) and D)
G) A) and C)

Question 8

Consumers' surplus is the difference between the price

Accepted Answer

A)   sellers receive for a good and the maximum price they would have paid for the good.
B)   sellers receive for a good and the minimum price for which they could have sold the good.
C)   buyers pay for a good and the maximum price they would have paid for the good.
D)   buyers pay for a good and the minimum price for which they would have sold the good.E) A) and D)
F) B) and C)

Question 9

The ability to produce a good at a lower opportunity cost than others is called a(n) __________ advantage.

Accepted Answer

A)   complementary
B)   comparative
C)   natural
D)   indigenousE) A) and C)
F) C) and D)

Question 10

Exhibit 34-10
 
-Refer to Exhibit 34-10. Jason's opportunity cost of cleaning the house is

Accepted Answer

A)   0.50 mowed lawns.
B)   1.00 mowed lawns.
C)   2.00 mowed lawns.
D)   0.60 mowed lawns.E) B) and C)
F) A) and C)

Question 11

Global technologies,such as electronics,have made up a significant portion of the recent wave of manufacturing offshoring.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is a major import for the United States?

Accepted Answer

A)   corn
B)   soybeans
C)   coal
D)   fish
E)   none of the aboveF) All of the above
G) A) and E)

Question 13

Which of the following statements about a tariff and a quota is true?

Accepted Answer

A)   With a tariff the government collects revenues, but not with a quota.
B)   With a quota the quantity of imports falls, but not with a tariff.
C)   With a tariff the domestic price of the good increases, but not with a quota.
D)   With a quota the domestic production of the good increases, but not with a tariff.
E)   all of the aboveF) A) and E)
G) None of the above

Question 14

One country has a comparative advantage over another country in the production of a good if it

Accepted Answer

A)   has a curved production possibilities curve and the other country has a linear production possibilities curve.
B)   has a linear production possibilities curve and the other country has a curved production possibilities curve.
C)   is a lower opportunity cost producer of the good.
D)   has lower fixed costs than the other country.E) A) and B)
F) B) and C)

Question 15

Consumers receive more consumers' surplus when __________.

Accepted Answer

A)   tariffs exist.
B)   tariffs do not exist.
C)   quotas exist.
D)   a and b
E)   b and cF) C) and E)
G) C) and D)

Question 16

List and describe three arguments that help to explain why nations sometimes restrict trade.Does everyone agree with these arguments?

Accepted Answer

The arguments that have been given to su...

Question 17

Evidence indicates that tariffs and quotas are

Accepted Answer

A)   beneficial for producers in a protected industry, but not beneficial for the workers in the industry.
B)   beneficial for producers in a protected industry, but not beneficial for consumers.
C)   beneficial for workers in a protected industry, but not beneficial for consumers.
D)   not beneficial for the workers in a protected industry or for consumers.
E)   b and cF) A) and B)
G) B) and D)

Question 18

The effects of a quota include:

Accepted Answer

A)   decreasing consumers' surplus.
B)   increasing total revenue for the importers who sell the allowed number of imported units.
C)   increasing producers' surplus.
D)   b and c
E)   a, b, and cF) C) and D)
G) C) and E)

Question 19

A quota is

Accepted Answer

A)   a tax imposed on imported goods.
B)   a legal limit on the amount of a good that can be produced by foreign owners of a firm located in a host country.
C)   a legal limit on the amount of a good that can be imported.
D)   an agreement between two countries in which the exporting country voluntarily agrees to limit its exports to the importing country.E) C) and D)
F) B) and D)

Question 20

When countries engage in specialization and international trade,every individual person in those countries will gain.

Accepted Answer

A) True 
 B)False

Exam 34: International Trade

The effects of a quota include:

Correct Answer
verified

Correct Answer
verified

One country has a comparative advantage over another country in the production of a good if it

Correct Answer
verified

List and describe three arguments that help to explain why nations sometimes restrict trade.Does everyone agree with these arguments?

Correct Answer
verified
The arguments that have been given to su...
View Answer

When countries engage in specialization and international trade,every individual person in those countries will gain.

Correct Answer
verified

Which of the following statements about a tariff and a quota is true?

Correct Answer
verified

Which of the following is a major import for the United States?

Correct Answer
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The ability to produce a good at a lower opportunity cost than others is called a(n) __________ advantage.

Correct Answer
verified

Consumers' surplus is the difference between the price

Correct Answer
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A tariff on avocadoes ________ the price of avocadoes,_ consumers' surplus for avocado buyers,_ producers' surplus of avocado growers and ____ tariff revenue.Because the loss to _ is more than the gain to _____________,there is a net loss to society.

Correct Answer
verified

Global technologies,such as electronics,have made up a significant portion of the recent wave of manufacturing offshoring.

Correct Answer
verified

Consumers receive more consumers' surplus when __________.

Correct Answer
verified

The term outsourcing is used to describe work done for a company by individuals working for another company in a different country.

Correct Answer
verified

Suppose that a tariff is imposed on imported cheese.This will have the effect of the quantity consumed of cheese, consumers' surplus,and __ the government's tariff revenues.

Correct Answer
verified

Which of the following conditions makes it most likely for a quota to be imposed?

Correct Answer
verified

The effect of a tariff is

Correct Answer
verified

A quota is

Correct Answer
verified

Evidence indicates that tariffs and quotas are

Correct Answer
verified

Correct Answer
verified

Exhibit 34-10 -Refer to Exhibit 34-10. Jason's opportunity cost of cleaning the house is

Correct Answer
verified

Exam 34: International Trade

The effects of a quota include:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

One country has a comparative advantage over another country in the production of a good if it

Correct AnswerverifiedShow Answer

List and describe three arguments that help to explain why nations sometimes restrict trade.Does everyone agree with these arguments?

Correct AnswerverifiedThe arguments that have been given to su...View AnswerShow Answer

When countries engage in specialization and international trade,every individual person in those countries will gain.

Correct AnswerverifiedShow Answer

Which of the following statements about a tariff and a quota is true?

Correct AnswerverifiedShow Answer

Which of the following is a major import for the United States?

Correct AnswerverifiedShow Answer

The ability to produce a good at a lower opportunity cost than others is called a(n) __________ advantage.

Correct AnswerverifiedShow Answer

Consumers' surplus is the difference between the price

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Global technologies,such as electronics,have made up a significant portion of the recent wave of manufacturing offshoring.

Correct AnswerverifiedShow Answer

Consumers receive more consumers' surplus when __________.

Correct AnswerverifiedShow Answer

The term outsourcing is used to describe work done for a company by individuals working for another company in a different country.

Correct AnswerverifiedShow Answer

Suppose that a tariff is imposed on imported cheese.This will have the effect of __________ the quantity consumed of cheese,__________ consumers' surplus,and __________ the government's tariff revenues.

Correct AnswerverifiedShow Answer

Which of the following conditions makes it most likely for a quota to be imposed?

Correct AnswerverifiedShow Answer

The effect of a tariff is

Correct AnswerverifiedShow Answer

A quota is

Correct AnswerverifiedShow Answer

Evidence indicates that tariffs and quotas are

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Exhibit 34-10 -Refer to Exhibit 34-10. Jason's opportunity cost of cleaning the house is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The arguments that have been given to su...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Suppose that a tariff is imposed on imported cheese.This will have the effect of the quantity consumed of cheese, consumers' surplus,and __ the government's tariff revenues.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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