Question 1

The argument that it is necessary to protect a new industry to enable it to grow into a mature industry that can compete in world markets is known as the

Accepted Answer

A)  infant-industry argument.
B)  diversity argument.
C)  national youth protection argument.
D)  national security argument.
E)  environmental protection argument.F) A) and B)
G) A) and E)

Question 2

If tomato growers in Florida lobby the U.S. government to impose an import quota on Mexican tomatoes, who gains from such a quota?

Accepted Answer

A)  U.S. consumers.
B)  No one.
C)  Mexican growers.
D)  U.S. growers.
E)  the U.S. government.F) A) and C)
G) D) and E)

Question 3

If supporters of restrictions on imports argue that protection is needed to preserve a strategic industry, which of the following is being used?

Accepted Answer

A)  National security argument
B)  Protecting national culture argument
C)  Dumping argument
D)  Infant-industry argument
E)  Save domestic jobs argumentF) A) and D)
G) C) and D)

Question 4

The United States imports t-shirts because

Accepted Answer

A)  the United States must import goods and services from other countries so that they can develop economically.
B)  the United States has a lower opportunity cost of production.
C)  foreign nations have a lower opportunity cost of production.
D)  it is a dangerous job to produce them.
E)  foreign economies have an absolute advantage in their production.F) B) and D)
G) A) and C)

Question 5

The two main reasons why international trade is restricted is because restricting trade means that governments can _____ and because domestic businesses_______________ .

Accepted Answer

A)  prevent dumping; want to dump
B)  create jobs; earn profits
C)  rent seek; want to dump
D)  obtain revenue; rent seek
E)  rent seek; obtain revenueF) C) and D)
G) C) and E)

Question 6

The above figure shows the U.S. market for 1 carat diamonds. 
-With free trade, the United States produces ___________diamonds and imports_________ diamonds.

Accepted Answer

A)  500,000; 400,000
B)  0; 900,000
C)  100,000; 800,000
D)  100,000; 900,000
E)  300,000; 600,000F) A) and D)
G) C) and D)

Question 7

A tax on a good that is imposed by the importing country is called a

Accepted Answer

A)  tariff.
B)  licensing regulation.
C)  nontariff barrier.
D)  quantitative restriction.
E)  trade constraint.F) A) and B)
G) A) and C)

Question 8

Price  (dollars per unit)   Quantity demanded  (units per day)   Quantity supplied  (units per day)  22014419166181881720101622121524\begin{array} { c c c } \hline \begin{array} { c } 	ext { Price } \	ext { (dollars per unit)  }\end{array} & \begin{array} { c } 	ext { Quantity demanded } \	ext { (units per day)  }\end{array} & \begin{array} { c } 	ext { Quantity supplied } \	ext { (units per day)  }\end{array} \\hline 2 & 20 & 14 \4 & 19 & 16 \6 & 18 & 18 \8 & 17 & 20 \10 & 16 & 22 \12 & 15 & 24 \\hline\end{array} Price  (dollars per unit)  ​24681012​ Quantity demanded  (units per day)  ​201918171615​ Quantity supplied  (units per day)  ​141618202224​​ 
-According to the above table, the country will import the good if the world price is less than_________
And will export the good if the world price is more than _______________.

Accepted Answer

A)  $4; $4
B)  $6; $6
C)  $8; $4
D)  $4; $8
E)  $10; $10 F) A) and E)
G) C) and E)

Question 9

In the wake of worsening relations with China, some Americans called for an increase in tariffs on Chinese products coming into America. If higher tariffs are imposed on clothing produced in China, the price of clothing in America would

Accepted Answer

A)  increase.
B)  decrease.
C)  first increase then decrease.
D)  first decrease then increase.
E)  not change.F) A) and E)
G) A) and D)

Question 10

When politicians debated the North American Free Trade Agreement (NAFTA) , some told stories
Of U.S. workers whose jobs would be moved to Mexico. Which of the following arguments in favor
Of protection was being used?

Accepted Answer

A)  Save domestic jobs argument
B)  Infant-industry argument
C)  Anti-dumping argument
D)  National security argument
E)  Diversity and stability argumentF) A) and B)
G) C) and D)

Question 11

With no international trade, the U.S. price of wheat is lower than the world price of wheat. This indicates that the United States ______ a comparative advantage in the production of wheat and with international trade, the United States will ______ wheat.

Accepted Answer

A)  has; export
B)  might have; export
C)  has; not trade
D)  has; import
E)  does not have; exportF) A) and E)
G) A) and D)

Question 12

If you buy a DVD player produced in Japan, a

Accepted Answer

A)  service was imported by Japan and exported by the United States.
B)  good was exported by Japan and by the United States.
C)  service was exported by Japan and imported by the United States.
D)  good was imported by Japan and by the United States.
E)  good was exported by Japan and imported by the United States.F) A) and B)
G) A) and E)

Question 13

What is the best hope for reducing environmental pollution in less-developed nations?

Accepted Answer

A)  strong international standards for pollution control
B)  free international trade that raises incomes in less-developed nations
C)  producing the goods in advanced, economically developed nations
D)  limiting international trade
E)  boycott of polluting nation's productsF) C) and E)
G) A) and B)

Exam 18: International Trade Policy

Correct Answer
verified

If you buy a DVD player produced in Japan, a

Correct Answer
verified

A tax on a good that is imposed by the importing country is called a

Correct Answer
verified

With no international trade, the U.S. price of wheat is lower than the world price of wheat. This indicates that the United States a comparative advantage in the production of wheat and with international trade, the United States will wheat.

Correct Answer
verified

The two main reasons why international trade is restricted is because restricting trade means that governments can _ and because domestic businesses___________ .

Correct Answer
verified

If supporters of restrictions on imports argue that protection is needed to preserve a strategic industry, which of the following is being used?

Correct Answer
verified

The United States imports t-shirts because

Correct Answer
verified

The argument that it is necessary to protect a new industry to enable it to grow into a mature industry that can compete in world markets is known as the

Correct Answer
verified

The above figure shows the U.S. market for 1 carat diamonds. -With free trade, the United States produces ___diamonds and imports_ diamonds.

Correct Answer
verified

In the wake of worsening relations with China, some Americans called for an increase in tariffs on Chinese products coming into America. If higher tariffs are imposed on clothing produced in China, the price of clothing in America would

Correct Answer
verified

What is the best hope for reducing environmental pollution in less-developed nations?

Correct Answer
verified

If tomato growers in Florida lobby the U.S. government to impose an import quota on Mexican tomatoes, who gains from such a quota?

Correct Answer
verified

When politicians debated the North American Free Trade Agreement (NAFTA) , some told stories Of U.S. workers whose jobs would be moved to Mexico. Which of the following arguments in favor Of protection was being used?

Correct Answer
verified

Exam 18: International Trade Policy

Correct AnswerverifiedShow Answer

If you buy a DVD player produced in Japan, a

Correct AnswerverifiedShow Answer

A tax on a good that is imposed by the importing country is called a

Correct AnswerverifiedShow Answer

With no international trade, the U.S. price of wheat is lower than the world price of wheat. This indicates that the United States ______ a comparative advantage in the production of wheat and with international trade, the United States will ______ wheat.

Correct AnswerverifiedShow Answer

The two main reasons why international trade is restricted is because restricting trade means that governments can _____ and because domestic businesses_______________ .

Correct AnswerverifiedShow Answer

If supporters of restrictions on imports argue that protection is needed to preserve a strategic industry, which of the following is being used?

Correct AnswerverifiedShow Answer

The United States imports t-shirts because

Correct AnswerverifiedShow Answer

The argument that it is necessary to protect a new industry to enable it to grow into a mature industry that can compete in world markets is known as the

Correct AnswerverifiedShow Answer

The above figure shows the U.S. market for 1 carat diamonds. -With free trade, the United States produces ___________diamonds and imports_________ diamonds.

Correct AnswerverifiedShow Answer

In the wake of worsening relations with China, some Americans called for an increase in tariffs on Chinese products coming into America. If higher tariffs are imposed on clothing produced in China, the price of clothing in America would

Correct AnswerverifiedShow Answer

What is the best hope for reducing environmental pollution in less-developed nations?

Correct AnswerverifiedShow Answer

If tomato growers in Florida lobby the U.S. government to impose an import quota on Mexican tomatoes, who gains from such a quota?

Correct AnswerverifiedShow Answer

When politicians debated the North American Free Trade Agreement (NAFTA) , some told stories Of U.S. workers whose jobs would be moved to Mexico. Which of the following arguments in favor Of protection was being used?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

With no international trade, the U.S. price of wheat is lower than the world price of wheat. This indicates that the United States a comparative advantage in the production of wheat and with international trade, the United States will wheat.

Correct Answer
verified

The two main reasons why international trade is restricted is because restricting trade means that governments can _ and because domestic businesses___________ .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The above figure shows the U.S. market for 1 carat diamonds. -With free trade, the United States produces ___diamonds and imports_ diamonds.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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