Question 1

Which of the following statements is true about the alleged benefits and adverse effects of trade barriers?

Accepted Answer

A)  The alleged benefits like "saved jobs" are limited to a narrow sector of the economy and clearly seen by the general public, while the adverse effects tend to be obscure and dispersed.
B)  The general public does not have much interest in trade and trade barriers because their effects are very small.
C)  The alleged benefits of trade barriers tend to be spread over the whole economy, while their adverse effects are narrow and concentrated on a small sector.
D)  The U.S. does not really have any significant trade barriers. That's why there is not much debate about them.E) B) and C)
F) C) and D)

Question 2

The production possibilities curves suggest that

Accepted Answer

A)  West Mudville should specialize in, and export, baseball bats.
B)  West Mudville should specialize in, and export, both baseballs and baseball bats.
C)  East Mudville should specialize in, and export, baseball bats.
D)  workers will try to immigrate from West Mudville to East Mudville.E) None of the above
F) B) and D)

Question 3

Which of the following is a valid counterargument against using tariffs to protect high wages from cheap foreign labor?

Accepted Answer

A)  The benefits of such a tariff policy will go to consumers, not workers.
B)  The benefits of such a tariff policy will go to businesses, not workers.
C)  Wage rates in a nation are largely determined by productivity, not trade tariffs.
D)  The economy may become overheated, thus increasing inflation.E) None of the above
F) A) and B)

Question 4

One main point of Frederic Bastiat's satire is that

Accepted Answer

A)  employment, or jobs, is the single most important measure of the standard of living.
B)  we should not try to produce what we can get from others at a lower cost.
C)  some industries may reasonably require protection in order to grow.
D)  exporting is always a worthwhile activity to be supported and enhanced.E) All of the above
F) C) and D)

Question 5

If a nation starts exporting a product to the rest of the world, then the price of that product in the exporting nation will rise.

Accepted Answer

A) True 
 B)False

Question 6

d and Dd are the domestic supply and demand for a product and Pc is the world price of that product. With a Pc Pₜ per-unit tariff, per-unit revenue received by domestic and foreign producers, respectively, will be A) Pc and Pₐ . B) Pₐ and Pc . C) Pₐ and Pₜ . D) Pₜ and Pc ." class="answers-bank-image d-inline" rel="preload" > Refer to the 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 Pc Pₜ per-unit tariff, per-unit revenue received by domestic and foreign producers, respectively, will be

Accepted Answer

A)  Pc and Pₐ .
B)  Pₐ and Pc .
C)  Pₐ and Pₜ .
D)  Pₜ and Pc .E) C) and D)
F) A) and C)

Question 7

If a nation agrees to set an upper limit on the total amount of a product that it exports to another nation, then this situation would be an example of

Accepted Answer

A)  an import quota.
B)  a revenue tariff.
C)  a protective tariff.
D)  a voluntary export restriction.E) All of the above
F) B) and C)

Exam 26: International Trade

If a nation starts exporting a product to the rest of the world, then the price of that product in the exporting nation will rise.

Correct Answer
verified

Refer to the 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 P_c Pₜ per-unit tariff, per-unit revenue received by domestic and foreign producers, respectively, will be

Correct Answer
verified

Which of the following is a valid counterargument against using tariffs to protect high wages from cheap foreign labor?

Correct Answer
verified

Which of the following statements is true about the alleged benefits and adverse effects of trade barriers?

Correct Answer
verified

One main point of Frederic Bastiat's satire is that

Correct Answer
verified

The production possibilities curves suggest that

Correct Answer
verified

If a nation agrees to set an upper limit on the total amount of a product that it exports to another nation, then this situation would be an example of

Correct Answer
verified

Exam 26: International Trade

If a nation starts exporting a product to the rest of the world, then the price of that product in the exporting nation will rise.

Correct AnswerverifiedShow Answer

Refer to the 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 Pc Pₜ per-unit tariff, per-unit revenue received by domestic and foreign producers, respectively, will be

Correct AnswerverifiedShow Answer

Which of the following is a valid counterargument against using tariffs to protect high wages from cheap foreign labor?

Correct AnswerverifiedShow Answer

Which of the following statements is true about the alleged benefits and adverse effects of trade barriers?

Correct AnswerverifiedShow Answer

One main point of Frederic Bastiat's satire is that

Correct AnswerverifiedShow Answer

The production possibilities curves suggest that

Correct AnswerverifiedShow Answer

If a nation agrees to set an upper limit on the total amount of a product that it exports to another nation, then this situation would be an example of

Correct AnswerverifiedShow Answer

Correct Answer
verified

Refer to the 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 P_c Pₜ per-unit tariff, per-unit revenue received by domestic and foreign producers, respectively, will be

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified