Question 1

Refer to the diagram below in which, line AB is the Canadian production possibility curve and AC is its trading possibilities curve.We can conclude that Canada:

Accepted Answer

A)  has chosen to specialize in the production of cheese.
B)  has chosen to specialize in the production of beef.
C)  has decided to trade beef for cheese.
D)  is relatively more efficient than its trading partners in producing both cheese and beef.E) A) and B)
F) B) and D)

Question 2

Assume that by devoting all its resources to the production of X, nation Alpha can produce 40 units of X.By devoting all its resources to Y, Alpha can produce 60Y.Comparable figures for nation Beta are, 60X and 40Y.Refer to the above information.Beta would prefer terms of trade at, or close to, 1X = 1 1/2 Y.

Accepted Answer

A) True 
 B)False

Question 3

Comparative advantage can result from different climates, natural resource endowments, and capital stocks in various countries.

Accepted Answer

A) True 
 B)False

Question 4

The proponents of the cheap foreign labour argument mistakenly:

Accepted Answer

A)  look at the labour costs per unit rather than labour costs per hour.
B)  look at the labour costs per hour rather than labour costs per unit of output.
C)  believe that labour costs per unit are not important.
D)  believe that the wage rates in Canada should be reduced in order to compete with low-wage nations.E) A) and B)
F) A) and C)

Question 5

The production possibilities curves below suggest that:

Accepted Answer

A)  West Mudsville should specialize in, and export, baseball bats.
B)  West Mudsville should specialize in, and export, both baseballs and baseball bats.
C)  East Mudsville should specialize in, and export, baseball bats.
D)  workers will try to immigrate from West Mudsville to East Mudsville.E) A) and B)
F) All of the above

Question 6

The statement that "tariffs are needed to protect Canadian firms from foreign producers which sell excess goods in the Canadian market at less than cost" would be most closely associated with which tariff argument?

Accepted Answer

A)  cheap foreign labour
B)  protection against dumping
C)  diversification for stability
D)  increased domestic employmentE) B) and C)
F) None of the above

Question 7

In terms of absolute volume, world trade is dominated by:

Accepted Answer

A)  Japan, Germany, and China.
B)  the United States, England, and China.
C)  Germany, England, and France.
D)  Germany, the United States, and China.E) B) and D)
F) A) and D)

Question 8

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) None of the above
F) A) and B)

Question 9

Refer to the above graph which shows the import demand and export supply curves for two nations that produce a product.The import demand curves for the two nations are represented by lines:

Accepted Answer

A)  5 and 6.
B)  5 and 7.
C)  6 and 8.
D)  7 and 8.E) None of the above
F) B) and D)

Question 10

Americans will neither export nor import aluminum when its:

Accepted Answer

A)  domestic price equals the world price.
B)  export supply curve lies above its import demand curve.
C)  export supply curve is upward sloping.
D)  import demand curve is downward sloping.E) B) and C)
F) C) and D)

Question 11

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

Accepted Answer

A)  chemicals
B)  autos
C)  watches
D)  woolE) B) and C)
F) None of the above

Question 12

The law of increasing opportunity costs limits international specialization.

Accepted Answer

A) True 
 B)False

Question 13

Refer to the diagram below, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product.Sd + Q is the product supply curve after an import quota is imposed.A quota of wy will: d and Dd are the domestic supply and demand for a product and Pc is the world price of that product.Sd + Q is the product supply curve after an import quota is imposed.A quota of wy will:   A) lower domestic price and increase domestic consumption. B) increase the revenues of domestic producers by areas E + F + K. C) increase the revenues of domestic producers by areas G + H. D) increase the revenues of domestic producers by areas E + F + G + H + J." class="answers-bank-image d-inline" rel="preload" >

Accepted Answer

A)  lower domestic price and increase domestic consumption.
B)  increase the revenues of domestic producers by areas E + F + K.
C)  increase the revenues of domestic producers by areas G + H.
D)  increase the revenues of domestic producers by areas E + F + G + H + J.E) All of the above
F) A) and B)

Question 14

Which is not commonly offered as a reason to support protectionism and abandon free trade?

Accepted Answer

A)  maintaining military self-sufficiency
B)  increasing domestic employment
C)  allowing infant industries to mature and become competitive
D)  promoting specialization and increasing worldwide production levelsE) All of the above
F) A) and B)

Question 15

A protective tariff will:

Accepted Answer

A)  increase the price and sales of domestic producers.
B)  reduce the welfare of domestic consumers.
C)  result in a transfer of income from domestic consumers to government.
D)  do all of the above.E) A) and B)
F) A) and C)

Question 16

Regional free-trade zones refers to a:

Accepted Answer

A)  group of industries that have common commodity and trade rules.
B)  group of countries which have liberalized the movement of Labour and not capital.
C)  group of countries that impose trade restrictions against each other.
D)  group of countries that seek to reduce tariffs, increase economic interests, and establish trade rules.E) B) and C)
F) C) and D)

Question 17

About how many nations belong to the World Trade Organization?

Accepted Answer

A)  155
B)  70
C)  149
D)  135E) A) and D)
F) A) and C)

Question 18

A major goal of the World Trade Organization (WTO)  is to:

Accepted Answer

A)  increase the protection of producers against foreign trade competition.
B)  encourage bilateral trade agreements between nations.
C)  liberalize international trade among nations.
D)  maximize tariff revenue for governments.E) C) and D)
F) A) and C)

Question 19

d and Dd are the domestic supply and demand for a product and Pc is the world price of that product.Sd + Q is the product supply curve after an import quota is imposed.The effect of the import quota on domestic price and domestic consumption is: A) the same as that of a tariff of PcPt. B) the same as that of a tariff of PtPa. C) the same as that of a tariff of PcPa. D) to raise price by more and reduce consumption less than a tariff of PcPt." class="answers-bank-image d-inline" rel="preload" > Refer to the above diagram, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product.Sd + Q is the product supply curve after an import quota is imposed.The effect of the import quota on domestic price and domestic consumption is:

Accepted Answer

A)  the same as that of a tariff of PcPt.
B)  the same as that of a tariff of PtPa.
C)  the same as that of a tariff of PcPa.
D)  to raise price by more and reduce consumption less than a tariff of PcPt.E) B) and C)
F) A) and B)

Question 20

d and Dd are the domestic supply and demand for a product and Pc is the world price of that product.With a per unit tariff of PcPt, the total amount of tariff revenue collected on this product will be: A) PaPt times wy. B) PcPt times x. C) PcPt times wy. D) PcPt times z." class="answers-bank-image d-inline" rel="preload" > Refer to the above diagram, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product.With a per unit tariff of PcPt, the total amount of tariff revenue collected on this product will be:

Accepted Answer

A)  PaPt times wy.
B)  PcPt times x.
C)  PcPt times wy.
D)  PcPt times z.E) B) and C)
F) A) and D)

Exam 17: B: International Trade

Which is not commonly offered as a reason to support protectionism and abandon free trade?

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

Correct Answer
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A protective tariff will:

Correct Answer
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Refer to the above diagram, where S_d and D_d are the domestic supply and demand for a product and P_c is the world price of that product.With a per unit tariff of P_cP_t, the total amount of tariff revenue collected on this product will be:

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

About how many nations belong to the World Trade Organization?

Correct Answer
verified

Refer to the diagram below, where S_d and D_d are the domestic supply and demand for a product and P_c is the world price of that product.S_d + Q is the product supply curve after an import quota is imposed.A quota of wy will:

Correct Answer
verified

The law of increasing opportunity costs limits international specialization.

Correct Answer
verified

A major goal of the World Trade Organization (WTO) is to:

Correct Answer
verified

Comparative advantage can result from different climates, natural resource endowments, and capital stocks in various countries.

Correct Answer
verified

Refer to the above graph which shows the import demand and export supply curves for two nations that produce a product.The import demand curves for the two nations are represented by lines:

Correct Answer
verified

The proponents of the cheap foreign labour argument mistakenly:

Correct Answer
verified

Correct Answer
verified

Refer to the diagram below in which, line AB is the Canadian production possibility curve and AC is its trading possibilities curve.We can conclude that Canada:

Correct Answer
verified

Regional free-trade zones refers to a:

Correct Answer
verified

The production possibilities curves below suggest that:

Correct Answer
verified

Americans will neither export nor import aluminum when its:

Correct Answer
verified

Refer to the above diagram, where S_d and D_d are the domestic supply and demand for a product and Pc is the world price of that product.S_d + Q is the product supply curve after an import quota is imposed.The effect of the import quota on domestic price and domestic consumption is:

Correct Answer
verified

In terms of absolute volume, world trade is dominated by:

Correct Answer
verified

The statement that "tariffs are needed to protect Canadian firms from foreign producers which sell excess goods in the Canadian market at less than cost" would be most closely associated with which tariff argument?

Correct Answer
verified

Exam 17: B: International Trade

Which is not commonly offered as a reason to support protectionism and abandon free trade?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A protective tariff will:

Correct AnswerverifiedShow Answer

Refer to the above diagram, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product.With a per unit tariff of PcPt, the total amount of tariff revenue collected on this product will be:

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

About how many nations belong to the World Trade Organization?

Correct AnswerverifiedShow Answer

Refer to the diagram below, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product.Sd + Q is the product supply curve after an import quota is imposed.A quota of wy will:

Correct AnswerverifiedShow Answer

The law of increasing opportunity costs limits international specialization.

Correct AnswerverifiedShow Answer

A major goal of the World Trade Organization (WTO) is to:

Correct AnswerverifiedShow Answer

Comparative advantage can result from different climates, natural resource endowments, and capital stocks in various countries.

Correct AnswerverifiedShow Answer

Refer to the above graph which shows the import demand and export supply curves for two nations that produce a product.The import demand curves for the two nations are represented by lines:

Correct AnswerverifiedShow Answer

The proponents of the cheap foreign labour argument mistakenly:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Refer to the diagram below in which, line AB is the Canadian production possibility curve and AC is its trading possibilities curve.We can conclude that Canada:

Correct AnswerverifiedShow Answer

Regional free-trade zones refers to a:

Correct AnswerverifiedShow Answer

The production possibilities curves below suggest that:

Correct AnswerverifiedShow Answer

Americans will neither export nor import aluminum when its:

Correct AnswerverifiedShow Answer

Refer to the above diagram, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product.Sd + Q is the product supply curve after an import quota is imposed.The effect of the import quota on domestic price and domestic consumption is:

Correct AnswerverifiedShow Answer

In terms of absolute volume, world trade is dominated by:

Correct AnswerverifiedShow Answer

The statement that "tariffs are needed to protect Canadian firms from foreign producers which sell excess goods in the Canadian market at less than cost" would be most closely associated with which tariff argument?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Refer to the above diagram, where S_d and D_d are the domestic supply and demand for a product and P_c is the world price of that product.With a per unit tariff of P_cP_t, the total amount of tariff revenue collected on this product will be:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Refer to the diagram below, where S_d and D_d are the domestic supply and demand for a product and P_c is the world price of that product.S_d + Q is the product supply curve after an import quota is imposed.A quota of wy will:

Correct Answer
verified

Correct Answer
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Correct Answer
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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
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Correct Answer
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Correct Answer
verified

Refer to the above diagram, where S_d and D_d are the domestic supply and demand for a product and Pc is the world price of that product.S_d + Q is the product supply curve after an import quota is imposed.The effect of the import quota on domestic price and domestic consumption is:

Correct Answer
verified

Correct Answer
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Correct Answer
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