Question 1

The goal of dumping is to:

Accepted Answer

A)   invite retaliation.
B)   reduce costs by producing in another country.
C)   eliminate excess production or gain market share.
D)   all of the above.E) C) and D)
F) All of the above

Question 2

Currently, the largest category of U.S. imports is:

Accepted Answer

A)   capital goods.
B)   nonfood consumer goods.
C)   foods, feeds, and beverages.
D)   industrial supplies and materials.E) A) and C)
F) C) and D)

Question 3

You would expect free, or unrestricted, international trade to:

Accepted Answer

A)   limit the sizes of markets in which goods are bought and sold.
B)   reduce competition in markets where goods are traded internationally.
C)   reduce the possibilities for specialization in the use of factors of production.
D)   reduce the prices of traded goods below what they would be with trade restrictions.E) None of the above
F) All of the above

Question 4

Use the following table showing production possibilities for herbs and cosmetics from one unit of resources in Country J and one unit of resources in Country K.
 
-The opportunity cost of producing 10 pounds of cosmetics is:

Accepted Answer

A)   lower in Country J than in Country K.
B)   higher in Country J than in Country K.
C)   the same in Country J as in Country K.
D)   indeterminate since both countries produce 50 pounds of herbs with one unit of resources.E) None of the above
F) B) and D)

Question 5

The main beneficiaries of free trade are the businesses that produce the freely traded goods and services.

Accepted Answer

A) True 
 B)False

Question 6

Why might an economy be attracted to protectionism when it is slipping into a deep recession?

Accepted Answer

During a recession, a country's mood beg...

Question 7

Country A currently produces ten CD players with one unit of resources and five televisions with another unit of resources. Country B currently produces eight CD players with one unit of resources and eight televisions with another unit of resources.
-If Country A uses its two units of resources to produce only CD players and if Country B uses its two units of resources to produce only televisions, the combined output of CD players and televisions from both countries will be:

Accepted Answer

A)   the same as it was before specialization.
B)   greater than it was before specialization.
C)   smaller than it was before specialization.
D)   greater or smaller than it was before specialization, depending upon which country initiated the change.E) B) and D)
F) A) and C)

Question 8

A tax on an import is:

Accepted Answer

A)   a tariff.
B)   a quota.
C)   an embargo.
D)   a voluntary trade restraint.E) B) and C)
F) None of the above

Question 9

International trade:

Accepted Answer

A)   is the buying and selling of goods and services among different countries.
B)   can result in the employment of fewer resources in a country if domestic firms face strong foreign competitors.
C)   can result in the employment of more resources in a country than would be the case if only domestic demand were met.
D)   all of the above.E) A) and C)
F) B) and C)

Question 10

A tariff has the effect of:

Accepted Answer

A)   increasing import prices to domestic buyers.
B)   increasing the ability of foreign goods to compete with domestic goods.
C)   decreasing import prices to domestic buyers.
D)   decreasing the sales of comparable domestic products.E) A) and B)
F) B) and D)

Question 11

In recent years, the most important group of U.S. exports has been:

Accepted Answer

A)   capital goods.
B)   industrial supplies.
C)   foods, feeds, and beverages.
D)   automotive vehicles and parts..E) A) and B)
F) A) and C)

Question 12

A tax on imports of electronic equipment is an example of:

Accepted Answer

A)   a tariff.
B)   a quota.
C)   an embargo.
D)   a free trade policy.E) None of the above
F) B) and D)

Question 13

Application 16.2, "Gloria Flunks the Professor,"demonstrates that:

Accepted Answer

A)   the economics profession has no theories to explain international trade.
B)   a person's position on protectionism may be complicated by a conflict between philosophical commitment and personal interests.
C)   free trade is the best international trade policy, despite the fact that economic theory shows that no one benefits from free trade.
D)   after centuries of debating the free trade-protectionism issue, neither side has been able to identify any group that would benefit from its proposals.E) None of the above
F) A) and B)

Question 14

The freer the trade between nations:

Accepted Answer

A)   the greater the opportunity for specialization and the greater the competition among sellers in a market.
B)   the smaller the opportunity for specialization but the greater the opportunity for improved efficiency in production.
C)   the greater the opportunity to use resources efficiently and the greater the opportunity for sellers to raise prices and restrict outputs.
D)   the smaller the opportunity to increase the availability of goods and services and the smaller the opportunity to decrease the costs of production.E) B) and C)
F) A) and B)

Question 15

The 1994 trade agreement among the United States, Canada, and Mexico:

Accepted Answer

A)   is known as the North American Free Trade Agreement, or NAFTA.
B)   has been a source of debate over issues such as working conditions, laborers' rights, and the environment.
C)   has benefited the Mexican economy by allowing it to import inputs from the U.S., process them, and then return the finished products to the U.S. as exports.
D)   all of the above.E) B) and C)
F) A) and C)

Question 16

Use the following table showing production possibilities for herbs and cosmetics from one unit of resources in Country J and one unit of resources in Country K.
 
-Suppose that the combined output from both countries is 100 pounds of herbs and 60 pounds of cosmetics when each country uses two units of resources. From this it can be concluded that:

Accepted Answer

A)   each country is specializing in a way that takes advantage of its comparative advantage.
B)   each country is specializing, but not in a way that takes advantage of its comparative advantage.
C)   Country J is specializing in the production of herbs and Country K is producing both herbs and cosmetics.
D)   Country K is specializing in the production of herbs and Country J is producing both herbs and cosmetics.E) C) and D)
F) B) and D)

Question 17

Use the following table showing production possibilities for herbs and cosmetics from one unit of resources in Country J and one unit of resources in Country K.
 
-If each country has two units of resources and if each country specializes according to its comparative advantage, the combined output of herbs and cosmetics will be:

Accepted Answer

A)   140 pounds of cosmetics and no herbs.
B)   200 pounds of herbs and no cosmetics.
C)   100 pounds of herbs and 80 pounds of cosmetics.
D)   one of the above.E) B) and C)
F) A) and C)

Question 18

The ______ _______ ________ took over the responsibilities of GATT and is concerned with encouraging trade and settling trade disputes.

Accepted Answer

World Trad...

Question 19

With one unit of resources each, Country A can produce 12 schools or 4 hospitals and Country B can produce 12 schools or 6 hospitals.
-According to the principle of comparative advantage, Country A should:

Accepted Answer

A)   produce both schools and hospitals.
B)   produce neither schools nor hospitals.
C)   specialize in the production of schools.
D)   specialize in the production of hospitals.E) A) and D)
F) A) and C)

Question 20

According to the philosophy of protectionism, unrestricted importing may be injurious to the economy as a whole, or to certain groups within the economy.

Accepted Answer

A) True 
 B)False

Exam 16: International Trade

Use the following table showing production possibilities for herbs and cosmetics from one unit of resources in Country J and one unit of resources in Country K. -The opportunity cost of producing 10 pounds of cosmetics is:

Correct Answer
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Correct Answer
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Correct Answer
verified

The __ _ ______ took over the responsibilities of GATT and is concerned with encouraging trade and settling trade disputes.

Correct Answer
verified
World Trad...
View Answer

The 1994 trade agreement among the United States, Canada, and Mexico:

Correct Answer
verified

A tax on imports of electronic equipment is an example of:

Correct Answer
verified

A tax on an import is:

Correct Answer
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In recent years, the most important group of U.S. exports has been:

Correct Answer
verified

Application 16.2, "Gloria Flunks the Professor,"demonstrates that:

Correct Answer
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You would expect free, or unrestricted, international trade to:

Correct Answer
verified

With one unit of resources each, Country A can produce 12 schools or 4 hospitals and Country B can produce 12 schools or 6 hospitals. -According to the principle of comparative advantage, Country A should:

Correct Answer
verified

The freer the trade between nations:

Correct Answer
verified

Why might an economy be attracted to protectionism when it is slipping into a deep recession?

Correct Answer
verified
During a recession, a country's mood beg...
View Answer

The main beneficiaries of free trade are the businesses that produce the freely traded goods and services.

Correct Answer
verified

The goal of dumping is to:

Correct Answer
verified

A tariff has the effect of:

Correct Answer
verified

According to the philosophy of protectionism, unrestricted importing may be injurious to the economy as a whole, or to certain groups within the economy.

Correct Answer
verified

International trade:

Correct Answer
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Currently, the largest category of U.S. imports is:

Correct Answer
verified

Correct Answer
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Exam 16: International Trade

Use the following table showing production possibilities for herbs and cosmetics from one unit of resources in Country J and one unit of resources in Country K. -The opportunity cost of producing 10 pounds of cosmetics is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The ______ _______ ________ took over the responsibilities of GATT and is concerned with encouraging trade and settling trade disputes.

Correct AnswerverifiedWorld Trad...View AnswerShow Answer

The 1994 trade agreement among the United States, Canada, and Mexico:

Correct AnswerverifiedShow Answer

A tax on imports of electronic equipment is an example of:

Correct AnswerverifiedShow Answer

A tax on an import is:

Correct AnswerverifiedShow Answer

In recent years, the most important group of U.S. exports has been:

Correct AnswerverifiedShow Answer

Application 16.2, "Gloria Flunks the Professor,"demonstrates that:

Correct AnswerverifiedShow Answer

You would expect free, or unrestricted, international trade to:

Correct AnswerverifiedShow Answer

With one unit of resources each, Country A can produce 12 schools or 4 hospitals and Country B can produce 12 schools or 6 hospitals. -According to the principle of comparative advantage, Country A should:

Correct AnswerverifiedShow Answer

The freer the trade between nations:

Correct AnswerverifiedShow Answer

Why might an economy be attracted to protectionism when it is slipping into a deep recession?

Correct AnswerverifiedDuring a recession, a country's mood beg...View AnswerShow Answer

The main beneficiaries of free trade are the businesses that produce the freely traded goods and services.

Correct AnswerverifiedShow Answer

The goal of dumping is to:

Correct AnswerverifiedShow Answer

A tariff has the effect of:

Correct AnswerverifiedShow Answer

According to the philosophy of protectionism, unrestricted importing may be injurious to the economy as a whole, or to certain groups within the economy.

Correct AnswerverifiedShow Answer

International trade:

Correct AnswerverifiedShow Answer

Currently, the largest category of U.S. imports is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The __ _ ______ took over the responsibilities of GATT and is concerned with encouraging trade and settling trade disputes.

Correct Answer
verified
World Trad...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
During a recession, a country's mood beg...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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