Question 1

When a country exports a good because the world price is higher than the no-trade domestic price,domestic purchases of the good ________ and domestic production of the good ________.

Accepted Answer

A)   increase; increases
B)   increase; decreases
C)   decrease; increases
D)   decrease; decreases
E)   do not change; increases

Question 2

-The above figure shows the U.S.market for replacement cell phone batteries.With free trade,the United States imports ________ batteries and once the tariff illustrated in the figure is imposed,the United States imports ________ batteries.

Accepted Answer

A)   900,000; 700,000
B)   800,000; 400,000
C)   300,000; 100,000
D)   700,000; 300,000
E)   900,000; 100,000

Question 3

Suppose the United States subsidizes domestic chicken production and then sells surpluses on the world market at a price below the cost of production.In foreign countries,the argument that would made to restrict chicken trade with the United States would be the

Accepted Answer

A)   penalizes lax environmental standards argument.
B)   saves jobs argument.
C)   infant-industry argument.
D)   dumping argument.
E)   national security argument.

Question 4

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

Question 5

"Tariffs today in the United States are much higher than in the past." Is the previous statement correct or incorrect?

Accepted Answer

The statement is most decidedl...

Question 6

The figure above shows the U.S. market for T-shirts, where SUS is the domestic supply curve and DUS is the domestic demand curve. The United States trades freely with the rest of the world. The world price of a T-shirt is $5.
-Based on the figure above,as a result of international trade,producer surplus

Accepted Answer

A)   increases by $150 million.
B)   decreases by $150 million.
C)   increases by $90 million.
D)   decreases by $90 million.
E)   remains unchanged.

Question 7

When a nation exports a good,its ________ surplus increases,and when it imports a good,its ________ surplus increases.

Accepted Answer

A)   consumer; total
B)   consumer; consumer
C)   producer; producer
D)   producer; consumer
E)   total; consumer

Question 8

Economics demonstrates that opening up unrestricted free international trade is beneficial to all nations.However,are there any losers from such a policy change?

Accepted Answer

Yes,there are losers from opening up to ...

Question 9

Most t-shirts bought by Americans are made in Asia.U.S.consumers of t-shirts buy these t-shirts because

Accepted Answer

A)   they pay a higher price for t-shirts made in Asia than they would for similar shirts made in the United States.
B)   they pay a lower price for t-shirts made in Asia than they would for similar shirts made in the United States.
C)   they must buy some goods or services produced in Asia.
D)   by so doing they are helping preserve U.S. jobs producing t-shirts.
E)   they know that the United States has a comparative advantage in wearing t-shirts.

Question 10

While high-paid American workers fear competition with low-paid foreign workers,low-paid foreign workers fear competition with high-paid American workers.Why?

Accepted Answer

A)   It is completely irrational and unfounded.
B)   Because America has such a large market it can protect its workers.
C)   Because high wages reflect high worker productivity and the low-paid foreign workers are not as productive.
D)   Because high wages are the result of extensive tariff and other trade restrictions.
E)   Because high wages mean that U.S. workers can buy more goods and services.

Question 11

Relative to free trade,domestic consumers of a good are ________ off with a tariff because of the ________.

Accepted Answer

A)   better; higher price and greater quantity sold
B)   better; higher price and smaller quantity sold
C)   better; lower price and greater quantity sold
D)   worse; lower price and smaller quantity sold
E)   worse; higher price and greater quantity sold

Question 12

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)   decrease.
B)   increase.
C)   not change.
D)   first increase then decrease.
E)   first decrease then increase.

Question 13

The United States imposes a tariff on foreign limes.How does the tariff affect the U.S.price of a lime and the production of limes in the United States?

Accepted Answer

The tariff raises the price of...

Question 14

-The above figure shows the U.S.market for wheat.With international trade,the gain in total surplus is equal to ________.

Accepted Answer

A)   area A
B)   area B + area C
C)   area D
D)   area C + area F
E)   area C + area D + area F

Question 15

-The above figure shows the U.S.market for flip-flops.When there is no international trade,the U.S.price is ________ per flip-flop and the U.S.quantity is ________ flip-flops.

Accepted Answer

A)   $12; 300,000
B)   $14; 500,000
C)   $12; 700,000
D)   $14; 300,000
E)   $14; 700,000

Question 16

When a nation imports a good,its ________ surplus decreases and its ________ surplus increases.

Accepted Answer

A)   consumer; producer
B)   consumer; consumer
C)   producer; producer
D)   producer; total
E)   total; consumer

Question 17

The infant-industry argument is used by those who assert they want to

Accepted Answer

A)   limit imports to protect new industries.
B)   increase exports to encourage growth of new industries.
C)   limit exports.
D)   increase imports to earn money to support new industries.
E)   encourage foreign firms to dump in the United States.

Question 18

Dumping is defined as the situation in which

Accepted Answer

A)   domestic producers sell a product at prices below the cost of production.
B)   foreign producers sell a product at a price below the cost of production.
C)   foreign producers sell a product at a price above a fair level.
D)   domestic producers cut production to drive up domestic prices.
E)   domestic producers are protected by tariffs.

Question 19

When a tariff supporter argues that foreign producers are selling their products for prices below the costs of production,which of the following is being used?

Accepted Answer

A)   Save domestic jobs argument
B)   National security argument
C)   Dumping argument
D)   Infant-industry argument
E)   Diversity and stability argument

Question 20

Who gains from international trade?

Accepted Answer

A)   only the exporting nation
B)   only the importing nation
C)   both the importing and the exporting nations
D)   neither the importing nor the exporting nations
E)   The gains depends on which nation gets to keep the total revenue from the sale

Exam 9: Global Markets in Action

Dumping is defined as the situation in which

Correct Answer
verified

The infant-industry argument is used by those who assert they want to

Correct Answer
verified

Who gains from international trade?

Correct Answer
verified

The United States imposes a tariff on foreign limes.How does the tariff affect the U.S.price of a lime and the production of limes in the United States?

Correct Answer
verified
The tariff raises the price of...
View 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 Answer
verified

-The above figure shows the U.S.market for flip-flops.When there is no international trade,the U.S.price is per flip-flop and the U.S.quantity is flip-flops.

Correct Answer
verified

-The above figure shows the U.S.market for wheat.With international trade,the gain in total surplus is equal to ________.

Correct Answer
verified

Suppose the United States subsidizes domestic chicken production and then sells surpluses on the world market at a price below the cost of production.In foreign countries,the argument that would made to restrict chicken trade with the United States would be the

Correct Answer
verified

Correct Answer
verified

"Tariffs today in the United States are much higher than in the past." Is the previous statement correct or incorrect?

Correct Answer
verified
The statement is most decidedl...
View Answer

When a country exports a good because the world price is higher than the no-trade domestic price,domestic purchases of the good and domestic production of the good .

Correct Answer
verified

While high-paid American workers fear competition with low-paid foreign workers,low-paid foreign workers fear competition with high-paid American workers.Why?

Correct Answer
verified

-The above figure shows the U.S.market for replacement cell phone batteries.With free trade,the United States imports batteries and once the tariff illustrated in the figure is imposed,the United States imports batteries.

Correct Answer
verified

Economics demonstrates that opening up unrestricted free international trade is beneficial to all nations.However,are there any losers from such a policy change?

Correct Answer
verified
Yes,there are losers from opening up to ...
View 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 Answer
verified

When a tariff supporter argues that foreign producers are selling their products for prices below the costs of production,which of the following is being used?

Correct Answer
verified

When a nation imports a good,its surplus decreases and its surplus increases.

Correct Answer
verified

When a nation exports a good,its surplus increases,and when it imports a good,its surplus increases.

Correct Answer
verified

Relative to free trade,domestic consumers of a good are off with a tariff because of the .

Correct Answer
verified

Most t-shirts bought by Americans are made in Asia.U.S.consumers of t-shirts buy these t-shirts because

Correct Answer
verified

Exam 9: Global Markets in Action

Dumping is defined as the situation in which

Correct AnswerverifiedShow Answer

The infant-industry argument is used by those who assert they want to

Correct AnswerverifiedShow Answer

Who gains from international trade?

Correct AnswerverifiedShow Answer

The United States imposes a tariff on foreign limes.How does the tariff affect the U.S.price of a lime and the production of limes in the United States?

Correct AnswerverifiedThe tariff raises the price of...View AnswerShow 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 above figure shows the U.S.market for flip-flops.When there is no international trade,the U.S.price is ________ per flip-flop and the U.S.quantity is ________ flip-flops.

Correct AnswerverifiedShow Answer

-The above figure shows the U.S.market for wheat.With international trade,the gain in total surplus is equal to ________.

Correct AnswerverifiedShow Answer

Suppose the United States subsidizes domestic chicken production and then sells surpluses on the world market at a price below the cost of production.In foreign countries,the argument that would made to restrict chicken trade with the United States would be the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

"Tariffs today in the United States are much higher than in the past." Is the previous statement correct or incorrect?

Correct AnswerverifiedThe statement is most decidedl...View AnswerShow Answer

When a country exports a good because the world price is higher than the no-trade domestic price,domestic purchases of the good ________ and domestic production of the good ________.

Correct AnswerverifiedShow Answer

While high-paid American workers fear competition with low-paid foreign workers,low-paid foreign workers fear competition with high-paid American workers.Why?

Correct AnswerverifiedShow Answer

-The above figure shows the U.S.market for replacement cell phone batteries.With free trade,the United States imports ________ batteries and once the tariff illustrated in the figure is imposed,the United States imports ________ batteries.

Correct AnswerverifiedShow Answer

Economics demonstrates that opening up unrestricted free international trade is beneficial to all nations.However,are there any losers from such a policy change?

Correct AnswerverifiedYes,there are losers from opening up to ...View AnswerShow 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

When a tariff supporter argues that foreign producers are selling their products for prices below the costs of production,which of the following is being used?

Correct AnswerverifiedShow Answer

When a nation imports a good,its ________ surplus decreases and its ________ surplus increases.

Correct AnswerverifiedShow Answer

When a nation exports a good,its ________ surplus increases,and when it imports a good,its ________ surplus increases.

Correct AnswerverifiedShow Answer

Relative to free trade,domestic consumers of a good are ________ off with a tariff because of the ________.

Correct AnswerverifiedShow Answer

Most t-shirts bought by Americans are made in Asia.U.S.consumers of t-shirts buy these t-shirts because

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The tariff raises the price of...
View Answer

Correct Answer
verified

-The above figure shows the U.S.market for flip-flops.When there is no international trade,the U.S.price is per flip-flop and the U.S.quantity is flip-flops.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The statement is most decidedl...
View Answer

When a country exports a good because the world price is higher than the no-trade domestic price,domestic purchases of the good and domestic production of the good .

Correct Answer
verified

Correct Answer
verified

-The above figure shows the U.S.market for replacement cell phone batteries.With free trade,the United States imports batteries and once the tariff illustrated in the figure is imposed,the United States imports batteries.

Correct Answer
verified

Correct Answer
verified
Yes,there are losers from opening up to ...
View Answer

Correct Answer
verified

Correct Answer
verified

When a nation imports a good,its surplus decreases and its surplus increases.

Correct Answer
verified

When a nation exports a good,its surplus increases,and when it imports a good,its surplus increases.

Correct Answer
verified

Relative to free trade,domestic consumers of a good are off with a tariff because of the .

Correct Answer
verified

Correct Answer
verified