Question 1

In effect tariffs on imports are:

Accepted Answer

A)   special taxes on domestic producers.
B)   subsidies to domestic consumers.
C)   subsidies to foreign producers.
D)   subsidies for domestic producers.E) A) and B)
F) C) and D)

Question 2

The best example of a land-intensive commodity is:

Accepted Answer

A)   cameras.
B)   radios.
C)   meat.
D)   chemicals.E) C) and D)
F) B) and D)

Question 3

A tax on an imported product is a(n) :

Accepted Answer

A)   tariff.
B)   quota.
C)   import subsidy.
D)   export subsidy.E) A) and C)
F) A) and D)

Question 4

As of 2011,16 out of 27 members of the EU use the Euro as a common currency.The 3 countries that have opted out of the common currency are:

Accepted Answer

A)   Germany,Great Britain,and Denmark.
B)   Germany,Denmark,and Sweden.
C)   Great Britain,Denmark,and Sweden.
D)   France,Germany,and Sweden.E) A) and D)
F) C) and D)

Question 5

The specification of the maximum amounts of commodities which may be imported into a country in any period of time is a:

Accepted Answer

A)   tariff.
B)   quota.
C)   nontariff barrier.
D)   voluntary export restriction.E) None of the above
F) All of the above

Question 6

The following data is for the hypothetical nations of Alpha and Beta.Qs is domestic quantity supplied and Qd is domestic quantity demanded.
 s is domestic quantity supplied and Qd is domestic quantity demanded.    -Refer to the above data.Alpha's export supply is represented by:   A)  Choice A B)  Choice B C)  Choice C D)  Choice D" class="answers-bank-image d-inline" rel="preload" >
-Refer to the above data.Alpha's export supply is represented by: s is domestic quantity supplied and Qd is domestic quantity demanded.    -Refer to the above data.Alpha's export supply is represented by:   A)  Choice A B)  Choice B C)  Choice C D)  Choice D" class="answers-bank-image d-inline" rel="preload" >

Accepted Answer

A)   Choice A
B)   Choice B
C)   Choice C
D)   Choice DE) B) and C)
F) None of the above

Question 7

GATT was an international organization designed to provide short-term advances of foreign monies to those nations faced with trade deficits.

Accepted Answer

A) True 
 B)False

Question 8

Free trade based on comparative advantage is economically beneficial because:

Accepted Answer

A)   it promotes an efficient allocation of world resources.
B)   it increases competition.
C)   it provides consumers with a wider range of products.
D)   of all of the above reasons.E) B) and D)
F) None of the above

Question 9

Which products were the leading imports of Canada in 2014

Accepted Answer

A)   energy products
B)   machinery and equipment
C)   agricultural and fishing products
D)   petroleumE) B) and D)
F) None of the above

Question 10

Which country did Canada sign a free-trade agreement with in 2008?

Accepted Answer

A)   South Korea.
B)   Columbia.
C)   Brazil.
D)   Argentina.E) A) and B)
F) A) and C)

Question 11

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 B)

Question 12

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

Accepted Answer

A)   clothing
B)   wool
C)   sunflower seeds
D)   chemicalsE) A) and B)
F) B) and D)

Question 13

The "increased-domestic-employment" argument for tariff protection holds that:

Accepted Answer

A)   domestic inflation is a desirable policy goal because it stimulates exports.
B)   domestic deflation is a desirable policy goal because it stimulates imports.
C)   an increase in tariffs will reduce net exports and stimulate domestic employment.
D)   an increase in tariffs will increase net exports and stimulate domestic employment.E) A) and B)
F) All of the above

Question 14

The following data is for the hypothetical nations of Alpha and Beta.Qs is domestic quantity supplied and Qd is domestic quantity demanded.
 s is domestic quantity supplied and Qd is domestic quantity demanded.    -Refer to the above data.The equilibrium world price of steel must be between: A)  $5 and $4. B)  $4 and $3. C)  $3 and $2. D)  $2 and $1." class="answers-bank-image d-inline" rel="preload" >
-Refer to the above data.The equilibrium world price of steel must be between:

Accepted Answer

A)   $5 and $4.
B)   $4 and $3.
C)   $3 and $2.
D)   $2 and $1.E) A) and B)
F) C) and D)

Question 15

Dumping is:

Accepted Answer

A)   selling of a good in a foreign market at a price above its domestic price.
B)   selling of a good in a foreign market at a price equal to its domestic price.
C)   a form of price discrimination.
D)   a form of protective tariff.E) A) and B)
F) B) and C)

Question 16

The World Trade Organization:

Accepted Answer

A)   is also known as the International Monetary Fund (IMF) .
B)   was established by the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) to resolve disputes arising under the GATT rules.
C)   is also known as the European Union-NAFTA Alliance.
D)   enhances world trade by providing interest rate subsidies to foreign borrowers who buy exports on credit.E) A) and B)
F) All of the above

Question 17

The nation which has a comparative advantage in a particular product will be the only world exporter of that product.

Accepted Answer

A) True 
 B)False

Question 18

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) A) and D)
F) All of the above

Question 19

-Export supply curves are _____________ import demand curves are __________.

Accepted Answer

A)   horizontal;vertical
B)   vertical;horizontal
C)   downsloping;upward sloping
D)   upward sloping;downslopingE) B) and C)
F) A) and D)

Question 20

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

Accepted Answer

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

Exam 17: International Trade

GATT was an international organization designed to provide short-term advances of foreign monies to those nations faced with trade deficits.

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A tax on an imported product is a(n) :

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The best example of a land-intensive commodity is:

Correct AnswerverifiedShow Answer

The nation which has a comparative advantage in a particular product will be the only world exporter of that product.

Correct AnswerverifiedShow Answer

The specification of the maximum amounts of commodities which may be imported into a country in any period of time is a:

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In effect tariffs on imports are:

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The "increased-domestic-employment" argument for tariff protection holds that:

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

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Which country did Canada sign a free-trade agreement with in 2008?

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Dumping is:

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The following data is for the hypothetical nations of Alpha and Beta.Qs is domestic quantity supplied and Qd is domestic quantity demanded. -Refer to the above data.Alpha's export supply is represented by:

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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:

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The following data is for the hypothetical nations of Alpha and Beta.Qs is domestic quantity supplied and Qd is domestic quantity demanded. -Refer to the above data.The equilibrium world price of steel must be between:

Correct AnswerverifiedShow Answer

Free trade based on comparative advantage is economically beneficial because:

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

Correct AnswerverifiedShow Answer

-Export supply curves are _____________ import demand curves are __________.

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

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Which products were the leading imports of Canada in 2014

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As of 2011,16 out of 27 members of the EU use the Euro as a common currency.The 3 countries that have opted out of the common currency are:

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The World Trade Organization:

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The following data is for the hypothetical nations of Alpha and Beta.Q_s is domestic quantity supplied and Q_d is domestic quantity demanded. -Refer to the above data.Alpha's export supply is represented by:

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The following data is for the hypothetical nations of Alpha and Beta.Q_s is domestic quantity supplied and Q_d is domestic quantity demanded. -Refer to the above data.The equilibrium world price of steel must be between:

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-Export supply curves are ___ import demand curves are .

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