Question 1

The Smoot- Hawley Act was enacted in

Accepted Answer

A)   1950.
B)   2000.
C)   1980.
D)   1930.

Question 2

A U.S. tariff on textiles would U.S. clothing prices and jobs in the U.S. textile industry.

Accepted Answer

A)   raise; increase
B)   raise; decrease
C)   reduce; decrease
D)   reduce; increase

Question 3

Some observers opposing free trade argue that when we buy shoes from Brazil or shirts from Taiwan, U.S. workers lose their jobs. The fact of the matter is that

Accepted Answer

A)   free trade creates jobs in export industries.
B)   the jobs lost are concentrated in restricted geographic areas.
C)   no U.S. worker has actually lost a job because of free trade.
D)   most jobs lost because of free trade pay less than the poverty level.

Question 4

The idea of dynamic comparative advantage is the basis for which of the following arguments for protection from foreign competition?

Accepted Answer

A)   the saves jobs argument
B)   the dumping argument
C)   the infant- industry argument
D)   the cheap foreign labor argument

Question 5

Tariffs and import quotas differ in that

Accepted Answer

A)   one is imposed by the government, while the other is imposed by the private sector.
B)   one is a tax, while the other is a limit.
C)   one is a form of trade restriction, while the other is not.
D)   one is legal, while the other is not.

Question 6

When does the domestic government gain the MOST revenue?

Accepted Answer

A)   when it imposes a tariff
B)   when it negotiates a voluntary export restraint
C)   when it imposes an import quota
D)   The amount of revenue it gains is the same with a tariff and a voluntary export restraint.

Question 7

How does a tariff affect the domestic price of the import, the domestic consumption, the domestic production, and the quantity imported?

Accepted Answer

A tariff raises the price of the good. A...

Question 8

The European Union imports bananas from Latin America as well as imports from Europe's former colonies in the African, Caribbean and Pacific (ACP)  group. In 2006 the tariff on bananas from Latin America was higher than on ACP bananas. Which of the following statements is NOT true?

Accepted Answer

A)   The price European consumers pay for bananas is higher with the tariff than the free trade price
B)   European consumers are better off with tariff than with free trade
C)   The gain from free trade is decreased because of banana tariffs
D)   For European consumers, the price of ACP bananas is lower than Latin American bananas

Question 9

U.S. tariffs in the peaked in

Accepted Answer

A)   1992.
B)   1961.
C)   1933.
D)   1940.

Question 10

occurs when a foreign firm sells its exports at a lower price than it costs to produce the goods.

Accepted Answer

A)   Learning- by- doing
B)   A tariff
C)   Comparative advantage
D)   Dumping

Question 11

Quotas are less damaging to an economy than are tariffs.

Accepted Answer

A) True 
 B)False

Question 12

A tariff is a

Accepted Answer

A)   tax on an exported good or service.
B)   subsidy on an imported good.
C)   tax on an imported good or service.
D)   subsidy on an exported good.

Question 13

A tariff is imposed on a good. This will _ _ quantity supplied, quantity demanded, and _ price in the home country.

Accepted Answer

A)   increase; decrease; decrease
B)   increase; decrease; increase
C)   increase; remain unchanged; remain unchanged
D)   increase; increase; increase

Question 14

Of the following, in which decade were U.S. tariffs at their lowest level?

Accepted Answer

A)   1930s
B)   1950s
C)   1990s
D)   1970s

Question 15

Which of the following are reasons economists consider valid for trade protection?
I. Protection penalizes countries that have weak environmental standards.
II. Protection limits dumping of low- wage jobs into the domestic economy.
III. Protection prevents low- wage jobs in foreign countries from lowering wages in the United States.

Accepted Answer

A)   I, II, and III
B)   I and II
C)   II and III
D)   none of the above

Question 16

International trade arises from

Accepted Answer

A)   the advantage of execution.
B)   absolute advantage.
C)   importation duties.
D)   comparative advantage.

Question 17

A tariff _ the quantity of the good imported and the domestic price of the imported good.

Accepted Answer

A)   decreases; decreases
B)   increases; lowers
C)   decreases; increases
D)   does not change; increases

Question 18

Trade barriers are politically popular because

Accepted Answer

A)   their benefits are widespread, while their costs are highly concentrated.
B)   people recognize their use as a negotiating tool in international relations.
C)   their benefits are concentrated, while their costs are widespread.
D)   they are a way to avoid trade wars and still protect domestic producers.

Question 19

Explain the effects of a quota.

Accepted Answer

A quota is a quantitative restriction on...

Question 20

Less developed countries, compared to industrialized ones, are more likely to have higher tariff rates.

Accepted Answer

A) True 
 B)False

Exam 15: International Trade Policy

A tariff _ the quantity of the good imported and the domestic price of the imported good.

Correct Answer
verified

The idea of dynamic comparative advantage is the basis for which of the following arguments for protection from foreign competition?

Correct Answer
verified

Less developed countries, compared to industrialized ones, are more likely to have higher tariff rates.

Correct Answer
verified

Some observers opposing free trade argue that when we buy shoes from Brazil or shirts from Taiwan, U.S. workers lose their jobs. The fact of the matter is that

Correct Answer
verified

U.S. tariffs in the peaked in

Correct Answer
verified

How does a tariff affect the domestic price of the import, the domestic consumption, the domestic production, and the quantity imported?

Correct Answer
verified
A tariff raises the price of the good. A...
View Answer

The Smoot- Hawley Act was enacted in

Correct Answer
verified

Of the following, in which decade were U.S. tariffs at their lowest level?

Correct Answer
verified

Trade barriers are politically popular because

Correct Answer
verified

Tariffs and import quotas differ in that

Correct Answer
verified

A tariff is imposed on a good. This will _ _ quantity supplied, quantity demanded, and _ price in the home country.

Correct Answer
verified

A tariff is a

Correct Answer
verified

Correct Answer
verified

A U.S. tariff on textiles would U.S. clothing prices and jobs in the U.S. textile industry.

Correct Answer
verified

Quotas are less damaging to an economy than are tariffs.

Correct Answer
verified

The European Union imports bananas from Latin America as well as imports from Europe's former colonies in the African, Caribbean and Pacific (ACP) group. In 2006 the tariff on bananas from Latin America was higher than on ACP bananas. Which of the following statements is NOT true?

Correct Answer
verified

occurs when a foreign firm sells its exports at a lower price than it costs to produce the goods.

Correct Answer
verified

International trade arises from

Correct Answer
verified

Explain the effects of a quota.

Correct Answer
verified
A quota is a quantitative restriction on...
View Answer

When does the domestic government gain the MOST revenue?

Correct Answer
verified

Exam 15: International Trade Policy

A tariff _ the quantity of the good imported and the domestic price of the imported good.

Correct AnswerverifiedShow Answer

The idea of dynamic comparative advantage is the basis for which of the following arguments for protection from foreign competition?

Correct AnswerverifiedShow Answer

Less developed countries, compared to industrialized ones, are more likely to have higher tariff rates.

Correct AnswerverifiedShow Answer

Some observers opposing free trade argue that when we buy shoes from Brazil or shirts from Taiwan, U.S. workers lose their jobs. The fact of the matter is that

Correct AnswerverifiedShow Answer

U.S. tariffs in the peaked in

Correct AnswerverifiedShow Answer

How does a tariff affect the domestic price of the import, the domestic consumption, the domestic production, and the quantity imported?

Correct AnswerverifiedA tariff raises the price of the good. A...View AnswerShow Answer

The Smoot- Hawley Act was enacted in

Correct AnswerverifiedShow Answer

Of the following, in which decade were U.S. tariffs at their lowest level?

Correct AnswerverifiedShow Answer

Trade barriers are politically popular because

Correct AnswerverifiedShow Answer

Tariffs and import quotas differ in that

Correct AnswerverifiedShow Answer

A tariff is imposed on a good. This will _ _ quantity supplied, quantity demanded, and _ price in the home country.

Correct AnswerverifiedShow Answer

A tariff is a

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A U.S. tariff on textiles would U.S. clothing prices and jobs in the U.S. textile industry.

Correct AnswerverifiedShow Answer

Quotas are less damaging to an economy than are tariffs.

Correct AnswerverifiedShow Answer

The European Union imports bananas from Latin America as well as imports from Europe's former colonies in the African, Caribbean and Pacific (ACP) group. In 2006 the tariff on bananas from Latin America was higher than on ACP bananas. Which of the following statements is NOT true?

Correct AnswerverifiedShow Answer

occurs when a foreign firm sells its exports at a lower price than it costs to produce the goods.

Correct AnswerverifiedShow Answer

International trade arises from

Correct AnswerverifiedShow Answer

Explain the effects of a quota.

Correct AnswerverifiedA quota is a quantitative restriction on...View AnswerShow Answer

When does the domestic government gain the MOST revenue?

Correct AnswerverifiedShow Answer

Correct Answer
verified

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Correct Answer
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Correct Answer
verified
A tariff raises the price of the good. A...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
A quota is a quantitative restriction on...
View Answer

Correct Answer
verified