Question 1

d and Dd are the domestic supply and demand for a product and Pc is the world price of that product.With a PcPt per unit tariff, the quantities sold by foreign and domestic producers respectively will be: A) xz and x. B) xv and xz. C) x and xz. D) wy and w." 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.With a PcPt per unit tariff, the quantities sold by foreign and domestic producers respectively will be:

Accepted Answer

A)  xz and x.
B)  xv and xz.
C)  x and xz.
D)  wy and w.E) A) and B)
F) C) and D)

Question 2

Consider two countries which trade with each other.As these countries expand their production according to their comparative advantage, most probably they will experience:

Accepted Answer

A)  constant costs.
B)  high tariffs.
C)  decreasing costs.
D)  increasing costs.E) A) and B)
F) All of the above

Question 3

Which of the following countries had the lowest percentage of exports as a percentage of GDP in 2015?.Use Image 17.2 Global Perspective.

Accepted Answer

A)  Belgium
B)  Netherlands
C)  Germany
D)  CanadaE) C) and D)
F) A) and B)

Question 4

Which of the following is an example of a labour-intensive commodity?

Accepted Answer

A)  clothing
B)  beer
C)  Aspirin tablets
D)  gasolineE) All of the above
F) B) and C)

Question 5

Given the following production possibilities schedules, it can be seen that:

Accepted Answer

A)  France has a comparative advantage in producing wine.
B)  Germany can produce more machines than France.
C)  France has a comparative advantage in producing machines.
D)  Germany can produce more of both goods than France.E) A) and B)
F) A) and C)

Question 6

The following shows the Production possibilities tables for two countries, Latalia and Trombonia:  Refer to the above tables.If these two nations specialize on the basis of comparative advantage:

Accepted Answer

A)  Trombonia will produce beans and Latalia will produce pork.
B)  Trombonia will produce both beans and pork.
C)  Latalia will produce both beans and pork and Trombonia will produce neither.
D)  Latalia will produce beans and Trombonia will produce pork.E) A) and D)
F) A) and C)

Question 7

The long-run effect of tariffs is:

Accepted Answer

A)  an increase in domestic employment.
B)  an increase in export businesses.
C)  a reallocation of domestic workers from export industries to protected domestic industries.
D)  a reallocation of consumer spending to imported products over domestically-produced products.E) B) and C)
F) None of the above

Question 8

Several new players have significantly expanded their share of world trade.These nations are:

Accepted Answer

A)  China, Taiwan, Malaysia, and Indonesia.
B)  China, Singapore, South Korea, and Taiwan.
C)  North Korea, China, Hong Kong, and Cambodia.
D)  Japan, China, South Korea, and Taiwan.E) None of the above
F) A) and C)

Question 9

The major difference between a tariff and a quota on an imported product is that a tariff produces revenue for the government.

Accepted Answer

A) True 
 B)False

Question 10

The following table is domestic supply and demand schedules for a product.Suppose that the world price of the product is $1.  Refer to the above data.With a $1 dollar per unit tariff, price and total quantity sold will be:

Accepted Answer

A)  $3 and 7 units.
B)  $5 and 2 units.
C)  $7 and 3 units.
D)  $2 and 11 units.E) All of the above
F) A) and B)

Question 11

Imposing tariffs to increase domestic employment?

Accepted Answer

A)  causes a decrease in consumer prices
B)  causes a decrease in the tariff rates of foreign nations
C)  causes an increase in the number of jobs, especially for those in the export sector.
D)  is referred to as a "beggar thy neighbour" policy.E) All of the above
F) B) and C)

Question 12

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 C)
F) None of the above

Question 13

The following is the Production possibilities tables for two countries, Latalia and Trombonia: Latalia's production possibilities  Refer to the above tables.In Latalia the domestic real cost of 1 ton of pork:

Accepted Answer

A)  is 3 tons of beans.
B)  diminishes with the level of pork production.
C)  is 5 tons of beans.
D)  is 1/5 of a ton of beans.E) None of the above
F) A) and C)

Question 14

As of 2012, the Euro Zone consists of the 17 members of the EU that use the Euro as a common currency.

Accepted Answer

A) True 
 B)False

Question 15

An import quota:

Accepted Answer

A)  generates revenues for foreign producers.
B)  generates revenues for foreign governments.
C)  generates revenues for domestic producers.
D)  generates revenues for the domestic government.E) B) and D)
F) B) and C)

Question 16

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 17

The North American Free Trade Agreement (NAFTA) :

Accepted Answer

A)  resulted from GATT negotiations at the Uruguay Round.
B)  permits the European Union to export goods tariff free to North America.
C)  has eliminated most of the tariffs and other trade barriers among Canada, Mexico, and the United States.
D)  will reduce American exports to Mexico.E) C) and D)
F) B) and D)

Question 18

If Canadian government were to impose a quota on wristwatches imported from Switzerland, the:

Accepted Answer

A)  Canada would reduce its export of watches.
B)  prices of watches in Switzerland would rise.
C)  price of watches in Canada would remain the same, but the quantity will fall.
D)  total quantity of watches (domestically produced and imported)  purchased would decline.E) C) and D)
F) A) and C)

Question 19

Assume that by devoting all its resources to the production of X, nation Alpha can produce 40 units of X.By devoting all its resources to Y, Alpha can produce 60Y.Comparable figures for nation Beta are, 60X and 40Y.Refer to the above information.Alpha would prefer terms of trade at, or close to, 1X = 2/3 Y.

Accepted Answer

A) True 
 B)False

Question 20

The provisions of the Uruguay Round of GATT were phased in through:

Accepted Answer

A)  2005.
B)  1999.
C)  1994.
D)  2018.E) C) and D)
F) A) and B)

Exam 17: B: International Trade

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
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Which of the following is an example of a labour-intensive commodity?

Correct Answer
verified

The major difference between a tariff and a quota on an imported product is that a tariff produces revenue for the government.

Correct Answer
verified

Imposing tariffs to increase domestic employment?

Correct Answer
verified

If Canadian government were to impose a quota on wristwatches imported from Switzerland, the:

Correct Answer
verified

Correct Answer
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The long-run effect of tariffs is:

Correct Answer
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The following shows the Production possibilities tables for two countries, Latalia and Trombonia: Refer to the above tables.If these two nations specialize on the basis of comparative advantage:

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.With a P_cP_t per unit tariff, the quantities sold by foreign and domestic producers respectively will be:

Correct Answer
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Given the following production possibilities schedules, it can be seen that:

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

The provisions of the Uruguay Round of GATT were phased in through:

Correct Answer
verified

Consider two countries which trade with each other.As these countries expand their production according to their comparative advantage, most probably they will experience:

Correct Answer
verified

The following table is domestic supply and demand schedules for a product.Suppose that the world price of the product is $1. Refer to the above data.With a $1 dollar per unit tariff, price and total quantity sold will be:

Correct Answer
verified

The following is the Production possibilities tables for two countries, Latalia and Trombonia: Latalia's production possibilities Refer to the above tables.In Latalia the domestic real cost of 1 ton of pork:

Correct Answer
verified

An import quota:

Correct Answer
verified

As of 2012, the Euro Zone consists of the 17 members of the EU that use the Euro as a common currency.

Correct Answer
verified

Which of the following countries had the lowest percentage of exports as a percentage of GDP in 2015?.Use Image 17.2 Global Perspective.

Correct Answer
verified

The North American Free Trade Agreement (NAFTA) :

Correct Answer
verified

Several new players have significantly expanded their share of world trade.These nations are:

Correct Answer
verified

Exam 17: B: International Trade

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

Which of the following is an example of a labour-intensive commodity?

Correct AnswerverifiedShow Answer

The major difference between a tariff and a quota on an imported product is that a tariff produces revenue for the government.

Correct AnswerverifiedShow Answer

Imposing tariffs to increase domestic employment?

Correct AnswerverifiedShow Answer

If Canadian government were to impose a quota on wristwatches imported from Switzerland, the:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The long-run effect of tariffs is:

Correct AnswerverifiedShow Answer

The following shows the Production possibilities tables for two countries, Latalia and Trombonia: Refer to the above tables.If these two nations specialize on the basis of comparative advantage:

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.With a PcPt per unit tariff, the quantities sold by foreign and domestic producers respectively will be:

Correct AnswerverifiedShow Answer

Given the following production possibilities schedules, it can be seen that:

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

The provisions of the Uruguay Round of GATT were phased in through:

Correct AnswerverifiedShow Answer

Consider two countries which trade with each other.As these countries expand their production according to their comparative advantage, most probably they will experience:

Correct AnswerverifiedShow Answer

The following table is domestic supply and demand schedules for a product.Suppose that the world price of the product is $1. Refer to the above data.With a $1 dollar per unit tariff, price and total quantity sold will be:

Correct AnswerverifiedShow Answer

The following is the Production possibilities tables for two countries, Latalia and Trombonia: Latalia's production possibilities Refer to the above tables.In Latalia the domestic real cost of 1 ton of pork:

Correct AnswerverifiedShow Answer

An import quota:

Correct AnswerverifiedShow Answer

As of 2012, the Euro Zone consists of the 17 members of the EU that use the Euro as a common currency.

Correct AnswerverifiedShow Answer

Which of the following countries had the lowest percentage of exports as a percentage of GDP in 2015?.Use Image 17.2 Global Perspective.

Correct AnswerverifiedShow Answer

The North American Free Trade Agreement (NAFTA) :

Correct AnswerverifiedShow Answer

Several new players have significantly expanded their share of world trade.These nations are:

Correct AnswerverifiedShow Answer

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
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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.With a P_cP_t per unit tariff, the quantities sold by foreign and domestic producers respectively will be:

Correct Answer
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Correct Answer
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