Question 1

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) A) and B)
F) A) and C)

Question 2

Differences in production efficiencies among nations in producing a particular good result from:

Accepted Answer

A)   different amounts of skilled labour.
B)   different climatic conditions.
C)   different levels of technological knowledge.
D)   all of the above.E) A) and B)
F) A) and C)

Question 3

Other things equal,a tariff is:

Accepted Answer

A)   superior to an import quota for Canadians because a tariff increases the profits of foreign producers.
B)   inferior to an import quota for Canadians because a tariff increases the profits of domestic producers.
C)   superior to an import quota for Canadians because a tariff generates revenue for the federal government.
D)   inferior to an import quota for Canadians because a tariff generates revenue for the federal government.E) A) and C)
F) None of the above

Question 4

An example of a nontariff barrier would be:

Accepted Answer

A)   a minimum limit on the quantity of imports.
B)   excessive licensing requirements.
C)   a tax on an imported product.
D)   voluntary export restraints.E) A) and B)
F) A) and D)

Question 5

Assume that by devoting all of its resources to the production of X,nation Alpha can produce 40 units of X.By devoting all of its resources to Y,Alpha can produce 60Y.Comparable figures for nation Beta are 60X and 40Y.We can conclude that:

Accepted Answer

A)   the terms of trade will be 3X equals 1Y.
B)   Alpha should specialize in Y and Beta in X.
C)   Alpha should specialize in X and Beta in Y.
D)   there is no basis for mutually beneficial specialization and trade.E) C) and D)
F) A) and D)

Question 6

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

Question 7

The law of increasing opportunity costs:

Accepted Answer

A)   applies to land-intensive commodities,but not to labour-intensive or capital-intensive commodities.
B)   results in straight-line production possibilities curves rather than curves which are bowed outward as viewed from the origin.
C)   refutes the principle of comparative advantage.
D)   may limit the extent to which a nation specializes in producing a particular product.E) None of the above
F) All of the above

Question 8

The following is the Production possibilities data for two countries,Alpha and Beta,which have populations of equal size.
 
-Refer to the above data.The domestic opportunity cost of:

Accepted Answer

A)   producing a ton of chips in Alpha is 1/5 of a ton of fish.
B)   producing a ton of chips in Beta is 6 tons of fish.
C)   catching a ton of fish in Alpha is 5 tons of chips.
D)   catching a ton of fish in Beta is 6 tons of chips.E) All of the above
F) C) and D)

Question 9

The bulk of Canadian export and import trade is with:

Accepted Answer

A)   Japan
B)   China
C)   the United States
D)   EnglandE) C) and D)
F) All of the above

Question 10

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) A) and D)
F) A) and B)

Question 11

Canadian exports of goods and services are about:

Accepted Answer

A)   20 percent of Canadian GDP.
B)   5 percent of Canadian GDP.
C)   10 percent of Canadian GDP.
D)   30 percent of Canadian GDP.E) A) and C)
F) B) and C)

Question 12

The 1993 General Agreement on Tariffs and Trade (GATT) :

Accepted Answer

A)   reduced tariffs and liberalized government rules restricting international trade in services.
B)   established the World Bank.
C)   expanded the European Union by four nations.
D)   established a free trade zone between Canada,the United States,and Mexico.E) C) and D)
F) B) and D)

Question 13

The following information is about the cost ratios for two products-fish (F) and chicken (C) -in Singsong and Harmony.Assume that production occurs under conditions of constant costs and these are the only two nations in the world.If in Singsong: 1F = 2C and,in Harmony: 1F = 4C,which one of the following would not be feasible terms for trade between Singsong and Harmony?

Accepted Answer

A)   1 fish for 2 1/2 chicken
B)   1 fish for 3 chicken
C)   1 chicken for 1/5 of a fish
D)   1 chicken for 1/3 of a fishE) A) and B)
F) A) and C)

Question 14

The "gain" from international trade is:

Accepted Answer

A)   increased employment in the domestic export sector.
B)   more goods than would be attainable through domestic production alone.
C)   tariff revenue.
D)   increased employment in the domestic import sector.E) A) and B)
F) A) and C)

Question 15

An excise tax that is applied to imported products which are not produced domestically is a(n) :

Accepted Answer

A)   protective tariff.
B)   revenue tariff.
C)   import quota.
D)   nontariff barrier.E) A) and B)
F) C) and D)

Question 16

Which is a valid counterargument to use tariffs to protect high wages from cheap foreign labour?

Accepted Answer

A)   The benefits of such a policy will go to consumers,not workers.
B)   The benefits of such a policy will go to businesses,not workers.
C)   Wage rates in a nation are largely determined by productivity.
D)   The economy may become overheated,thus increasing inflation.E) A) and B)
F) All of the above

Question 17

Refer to the tables below.Which of the following would be feasible terms for trade between Latalia and Trombonia?
Production possibilities tables for two countries,Latalia and Trombonia:
Latalia's production possibilities: 
Trombonia's production possibilities:

Accepted Answer

A)   1 ton of beans for 1 ton of pork
B)   2 tons of beans for 1 ton of pork
C)   6 tons of beans for 1 ton of pork
D)   4 tons of beans for 1 ton of porkE) A) and B)
F) None of the above

Question 18

The best example of a capital-intensive good is:

Accepted Answer

A)   chemicals.
B)   radios.
C)   wheat.
D)   wool.E) A) and B)
F) C) and D)

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 size of the import quota: A)  is vz. B)  is vy. C)  is wy. D)  cannot be determined." 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 size of the import quota:

Accepted Answer

A)   is vz.
B)   is vy.
C)   is wy.
D)   cannot be determined.E) B) and D)
F) A) and D)

Question 20

The following data is for the hypothetical nations of Alpha and Beta.Qs is domestic quantity supplied and Qd is domestic quantity demanded.
 s is domestic quantity supplied and Qd is domestic quantity demanded.    -Refer to the above data.At a world price of $2: A)  Alpha will want to import 20 units of steel. B)  Beta will want to export 20 units of steel. C)  Alpha will want to export 20 units of steel. D)  neither country will want to import steel." class="answers-bank-image d-inline" rel="preload" >
-Refer to the above data.At a world price of $2:

Accepted Answer

A)   Alpha will want to import 20 units of steel.
B)   Beta will want to export 20 units of steel.
C)   Alpha will want to export 20 units of steel.
D)   neither country will want to import steel.E) All of the above
F) A) and C)

Exam 17: International Trade

An excise tax that is applied to imported products which are not produced domestically is a(n) :

Correct Answer
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Refer to the tables below.Which of the following would be feasible terms for trade between Latalia and Trombonia? Production possibilities tables for two countries,Latalia and Trombonia: Latalia's production possibilities: Trombonia's production possibilities:

Correct Answer
verified

Canadian exports of goods and services are about:

Correct Answer
verified

The best example of a capital-intensive good is:

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.S_d + Q is the product supply curve after an import quota is imposed.The size of the import quota:

Correct Answer
verified

The following data is for the hypothetical nations of Alpha and Beta.Q_s is domestic quantity supplied and Q_d is domestic quantity demanded. -Refer to the above data.At a world price of $2:

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 P_c 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
verified

Differences in production efficiencies among nations in producing a particular good result from:

Correct Answer
verified

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

Correct Answer
verified

Other things equal,a tariff is:

Correct Answer
verified

The following is the Production possibilities data for two countries,Alpha and Beta,which have populations of equal size. -Refer to the above data.The domestic opportunity cost of:

Correct Answer
verified

The law of increasing opportunity costs:

Correct Answer
verified

An example of a nontariff barrier would be:

Correct Answer
verified

The 1993 General Agreement on Tariffs and Trade (GATT) :

Correct Answer
verified

The bulk of Canadian export and import trade is with:

Correct Answer
verified

Assume that by devoting all of its resources to the production of X,nation Alpha can produce 40 units of X.By devoting all of its resources to Y,Alpha can produce 60Y.Comparable figures for nation Beta are 60X and 40Y.We can conclude that:

Correct Answer
verified

The "gain" from international trade is:

Correct Answer
verified

Which is a valid counterargument to use tariffs to protect high wages from cheap foreign labour?

Correct Answer
verified

Exam 17: International Trade

An excise tax that is applied to imported products which are not produced domestically is a(n) :

Correct AnswerverifiedShow Answer

Refer to the tables below.Which of the following would be feasible terms for trade between Latalia and Trombonia? Production possibilities tables for two countries,Latalia and Trombonia: Latalia's production possibilities: Trombonia's production possibilities:

Correct AnswerverifiedShow Answer

Canadian exports of goods and services are about:

Correct AnswerverifiedShow Answer

The best example of a capital-intensive good is:

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 size of the import quota:

Correct AnswerverifiedShow Answer

The following data is for the hypothetical nations of Alpha and Beta.Qs is domestic quantity supplied and Qd is domestic quantity demanded. -Refer to the above data.At a world price of $2:

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

Correct AnswerverifiedShow Answer

Differences in production efficiencies among nations in producing a particular good result from:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Other things equal,a tariff is:

Correct AnswerverifiedShow Answer

The following is the Production possibilities data for two countries,Alpha and Beta,which have populations of equal size. -Refer to the above data.The domestic opportunity cost of:

Correct AnswerverifiedShow Answer

The law of increasing opportunity costs:

Correct AnswerverifiedShow Answer

An example of a nontariff barrier would be:

Correct AnswerverifiedShow Answer

The 1993 General Agreement on Tariffs and Trade (GATT) :

Correct AnswerverifiedShow Answer

The bulk of Canadian export and import trade is with:

Correct AnswerverifiedShow Answer

Assume that by devoting all of its resources to the production of X,nation Alpha can produce 40 units of X.By devoting all of its resources to Y,Alpha can produce 60Y.Comparable figures for nation Beta are 60X and 40Y.We can conclude that:

Correct AnswerverifiedShow Answer

The "gain" from international trade is:

Correct AnswerverifiedShow Answer

Which is a valid counterargument to use tariffs to protect high wages from cheap foreign labour?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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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.S_d + Q is the product supply curve after an import quota is imposed.The size of the import quota:

Correct Answer
verified

The following data is for the hypothetical nations of Alpha and Beta.Q_s is domestic quantity supplied and Q_d is domestic quantity demanded. -Refer to the above data.At a world price of $2:

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.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
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Correct Answer
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Correct Answer
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