Question 1

The General Agreement on Tariffs and Trade (GATT) was established in:​

Accepted Answer

A)  1870 to protect U.S.industries and decrease world trade.
B)  1921 to manage legal and accounting requirements for U.S.tariffs and quotas.
C)  1947 by 23 countries to reduce trade restrictions.
D)  1973 to increase trade restrictions,after OPEC significantly raised oil prices.
E)  1990 to develop a free trade zone across 50 states.F) C) and D)
G) A) and B)

Question 2

The following graph shows the demand for and the supply of a good in a country.If the world price of the good is $2.00 per unit and an import quota of 50 units per month is imposed,then:​ ​
Figure 17.6
​

Accepted Answer

A)  domestic production will increase from 100 to 200 units per month.
B)  imports will increase from 25 to 50 units per month.
C)  domestic production will increase from 100 to 175 units per month.
D)  domestic production will increase from 100 to 125 units per month.
E)  domestic production will increase from 100 to 150 units per month.F) A) and B)
G) A) and C)

Question 3

The following graph shows U.S.demand for and supply of a good.Suppose the world price of the good is $1.00 per unit and a specific tariff of $0.50 per unit is imposed on each unit of imported good.In such a case,net welfare loss as a result of a tariff of $0.50 per unit is represented by the area ____.​ ​
Figure 17.2
​

Accepted Answer

A)  c + i + e + f
B)  i + f
C)  i
D)  f
E)  b + dF) B) and D)
G) B) and C)

Question 4

The following graph shows the supply of and demand for baseballs in the United States.If the world price of a baseball is $3,then the quantity of baseballs demanded is _____.​ ​
Figure 17.3
​

Accepted Answer

A)  4,000
B)  6,000
C)  8,000
D)  10,000
E)  12,000F) A) and B)
G) A) and C)

Question 5

Differences in tastes among nations:​

Accepted Answer

A)  make gains from trade possible even in the absence of differences in resource endowments.
B)  make gains from trade possible only when there are differences in resource endowments.
C)  negate any potential gains from trade.
D)  are caused by differences in resource endowments.
E)  occur only among countries whose people are of different religions.F) A) and C)
G) A) and B)

Question 6

If quota rights accrue to foreigners,then _____.​

Accepted Answer

A)  the domestic economy is better off with a quota than with a tariff
B)  the domestic economy is worse off with a quota than with a tariff
C)  consumer surplus and economic welfare increase
D)  production costs decrease
E)  part of the decrease in consumer surplus is redistributed to the domestic governmentF) A) and E)
G) B) and C)

Question 7

The following table shows per-day production data of rice and T-shirts for two countries,Cambria and Bodoni.Based on the table,it can be said that the opportunity cost of 1 ton of rice in Cambria is _____.​ ​
Table 17.1
​

Accepted Answer

A)  3 T-shirts
B)  10 T-shirts
C)  20 T-shirts
D)  30 T-shirts
E)  40 T-shirtsF) D) and E)
G) B) and E)

Question 8

Which of the following is not a type of trade restriction?​

Accepted Answer

A)  Low-interest loans to foreign buyers
B)  Export subsidies to domestic producers
C)  Restrictive health and safety standards
D)  Domestic content requirements
E)  Economies of scaleF) A) and C)
G) A) and B)

Question 9

The following table shows per-day production data of rice and T-shirts for two countries,Cambria and Bodoni.Based on the table,it can be said that Bodoni has a comparative advantage in the production of rice.​
​
Table 17.1
​

Accepted Answer

A) True 
 B)False

Question 10

Quotas are favoured over free international trade by:​

Accepted Answer

A)  consumers in the importing country and consumers in the exporting country.
B)  domestic producers in the importing country and foreign producers with quota rights.
C)  domestic producers and domestic consumers in the exporting country.
D)  foreign producers without quota rights and consumers in the importing country.
E)  foreign consumers and domestic producers in the exporting country.F) A) and E)
G) C) and D)

Exam 17: International Trade

If quota rights accrue to foreigners,then _____.

Correct Answer
verified

Correct Answer
verified

Differences in tastes among nations:

Correct Answer
verified

Which of the following is not a type of trade restriction?

Correct Answer
verified

The following table shows per-day production data of rice and T-shirts for two countries,Cambria and Bodoni.Based on the table,it can be said that Bodoni has a comparative advantage in the production of rice. Table 17.1

Correct Answer
verified

The General Agreement on Tariffs and Trade (GATT) was established in:

Correct Answer
verified

The following graph shows the supply of and demand for baseballs in the United States.If the world price of a baseball is $3,then the quantity of baseballs demanded is _____. Figure 17.3

Correct Answer
verified

The following table shows per-day production data of rice and T-shirts for two countries,Cambria and Bodoni.Based on the table,it can be said that the opportunity cost of 1 ton of rice in Cambria is _____. Table 17.1

Correct Answer
verified

The following graph shows the demand for and the supply of a good in a country.If the world price of the good is $2.00 per unit and an import quota of 50 units per month is imposed,then: Figure 17.6

Correct Answer
verified

Quotas are favoured over free international trade by:

Correct Answer
verified

Exam 17: International Trade

If quota rights accrue to foreigners,then _____.​

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Differences in tastes among nations:​

Correct AnswerverifiedShow Answer

Which of the following is not a type of trade restriction?​

Correct AnswerverifiedShow Answer

The following table shows per-day production data of rice and T-shirts for two countries,Cambria and Bodoni.Based on the table,it can be said that Bodoni has a comparative advantage in the production of rice.​ ​ Table 17.1 ​

Correct AnswerverifiedShow Answer

The General Agreement on Tariffs and Trade (GATT) was established in:​

Correct AnswerverifiedShow Answer

The following graph shows the supply of and demand for baseballs in the United States.If the world price of a baseball is $3,then the quantity of baseballs demanded is _____.​ ​ Figure 17.3 ​

Correct AnswerverifiedShow Answer

The following table shows per-day production data of rice and T-shirts for two countries,Cambria and Bodoni.Based on the table,it can be said that the opportunity cost of 1 ton of rice in Cambria is _____.​ ​ Table 17.1 ​

Correct AnswerverifiedShow Answer

The following graph shows the demand for and the supply of a good in a country.If the world price of the good is $2.00 per unit and an import quota of 50 units per month is imposed,then:​ ​ Figure 17.6 ​

Correct AnswerverifiedShow Answer

Quotas are favoured over free international trade by:​

Correct AnswerverifiedShow Answer

If quota rights accrue to foreigners,then _____.

Correct Answer
verified

Correct Answer
verified

Differences in tastes among nations:

Correct Answer
verified

Which of the following is not a type of trade restriction?

Correct Answer
verified

The following table shows per-day production data of rice and T-shirts for two countries,Cambria and Bodoni.Based on the table,it can be said that Bodoni has a comparative advantage in the production of rice. Table 17.1

Correct Answer
verified

The General Agreement on Tariffs and Trade (GATT) was established in:

Correct Answer
verified

The following graph shows the supply of and demand for baseballs in the United States.If the world price of a baseball is $3,then the quantity of baseballs demanded is _____. Figure 17.3

Correct Answer
verified

The following table shows per-day production data of rice and T-shirts for two countries,Cambria and Bodoni.Based on the table,it can be said that the opportunity cost of 1 ton of rice in Cambria is _____. Table 17.1

Correct Answer
verified

The following graph shows the demand for and the supply of a good in a country.If the world price of the good is $2.00 per unit and an import quota of 50 units per month is imposed,then: Figure 17.6

Correct Answer
verified

Quotas are favoured over free international trade by:

Correct Answer
verified