Question 1

Which of the following international organizations,founded in 1995,facilitates trade disputes between nations?

Accepted Answer

A)   United Nations (UN) 
B)   North American Free Trade Agreement (NAFT
A)  
C)   World Trade Organization (WTO) 
D)   European Union (EU) 
E)   Asia Pacific Economic Cooperation (APE
C)  F) A) and B)
G) A) and C)

Question 2

The following table identifies the real value of exports,imports,and gross domestic product (GDP) for the U.S.economy,measured in billions of dollars for a series of years.Use the table to answer the following questions:
 
-According to the table,across the 60-year period,the real value of exports ________ and the real value of exports as a percentage of GDP ________.

Accepted Answer

A)   increased; decreased
B)   increased; increased
C)   increased; fluctuated up and down
D)   decreased; increased
E)   fluctuated up and down; fluctuated up and downF) A) and D)
G) C) and E)

Question 3

Which of the following trade agreements caused trade between the United States,Canada,and Mexico to double?

Accepted Answer

A)   World Trade Organization
B)   Asia Pacific Economic Cooperation
C)   North American Free Trade Agreement
D)   European Union
E)   Central America Free Trade AgreementF) C) and D)
G) A) and E)

Question 4

A rich nation will trade with a poor nation (and vice versa) because the

Accepted Answer

A)   rich nation has a comparative advantage in all products.
B)   poor nation has an absolute advantage in all products.
C)   rich nation has an absolute advantage in all products.
D)   poor nation has a comparative advantage in a product.
E)   poor nation does not have any comparative advantage.F) B) and E)
G) A) and B)

Question 5

Use the following scenario to answer the following questions:
Karl and Jager produce cars and trucks.Karl can produce 10 cars per hour or 5 trucks per hour.Jager can produce 12 cars per hour or 4 trucks per hour.
-Based on the scenario,Jager's opportunity cost of one truck is ________ car(s) .

Accepted Answer

A)   three-quarters of a
B)   one and a third
C)   three
D)   four
E)   sixF) A) and B)
G) C) and D)

Question 6

Describe what the market effects on a good would be in the face of a quota,a tariff,and a complete ban on imports.

Accepted Answer

The demand for the product is the same i...

Question 7

A tax on imports is known as a(n)

Accepted Answer

A)   import subsidy.
B)   nontariff trade barrier.
C)   tariff.
D)   voluntary quota.
E)   quota.F) A) and B)
G) All of the above

Question 8

Use the following scenario to answer the following questions:
Karl and Jager produce cars and trucks.Karl can produce 10 cars per hour or 5 trucks per hour.Jager can produce 12 cars per hour or 4 trucks per hour.
-Based on the scenario,Karl's opportunity cost of one car is ________ truck(s) .

Accepted Answer

A)   one-quarter of a
B)   one-half of a
C)   two
D)   four
E)   sixF) All of the above
G) D) and E)

Question 9

Which of the following trade agreements is a binding agreement to reduce trade barriers between the United States and Mexico?

Accepted Answer

A)   World Trade Organization
B)   Asia Pacific Economic Cooperation
C)   North American Free Trade Agreement
D)   European Union
E)   Central America Free Trade AgreementF) B) and E)
G) B) and D)

Question 10

Why do politicians sometimes resist free trade and "globalization"?

Accepted Answer

A)   Free trade does not benefit the economy as a whole.
B)   Special interest groups may not benefit from free trade.
C)   Free trade does not benefit the global economy.
D)   Free trade usually hurts the consumers.
E)   Only the rich benefit from free trade.F) B) and D)
G) C) and D)

Question 11

A tariff is a tax imposed on ________ good.

Accepted Answer

A)   an imported
B)   a luxury
C)   an illegal
D)   the most popular
E)   a domesticF) C) and D)
G) A) and D)

Question 12

In the domestic market following the imposition of an import quota,imports ________,domestic production ________,and prices ________.

Accepted Answer

A)   decrease; increases; decrease
B)   increase; increases; increase
C)   decrease; increases; increase
D)   increase; decreases; decrease
E)   decrease; decreases; increaseF) D) and E)
G) B) and D)

Question 13

Use the following graph to answer the following questions:
 
-What is the price of a car if this is a nontrading (closed) economy?

Accepted Answer

A)   $6,000
B)   $8,000
C)   $10,000
D)   $14,000
E)   $24,000F) B) and E)
G) All of the above

Question 14

List three trade-restrictive policies.

Accepted Answer

Trade-restrictive po...

Question 15

What is the maximum number of each item that can be produced if each worker fully specializes and produces according to his comparative advantage?

Accepted Answer

A)   4 computers and 12 smartphones
B)   5 computers and 14 smartphones
C)   6 computers and 16 smartphones
D)   8 computers and 22 smartphones
E)   10 computers and 28 smartphonesF) All of the above
G) C) and D)

Question 16

Trade balance is

Accepted Answer

A)   the sum of a nation's total exports and total imports.
B)   the difference between a nation's total exports and total imports.
C)   when a nation exports more than it imports.
D)   when a nation imports more than it exports.
E)   when a nation no longer feels it has the need for trade partners.F) A) and C)
G) None of the above

Question 17

Use the following scenario to answer the following questions:
Karl and Jager produce cars and trucks.Karl can produce 10 cars per hour or 5 trucks per hour.Jager can produce 12 cars per hour or 4 trucks per hour.
-Based on the scenario,which of the following is true?

Accepted Answer

A)   Karl has both an absolute and a comparative advantage in car production.
B)   Karl has both an absolute and a comparative advantage in truck production.
C)   Karl has neither an absolute nor a comparative advantage in car production.
D)   Karl has neither an absolute nor a comparative advantage in truck production.
E)   Jager has both an absolute and a comparative advantage in truck production.F) A) and D)
G) A) and C)

Question 18

Graphically illustrate the lost consumer surplus associated with imposing a quota on imports.What happens to this lost surplus?

Accepted Answer

When the quota is imposed,the supply cur...

Question 19

The following table presents data on imports and exports as a percentage of gross domestic product (GDP) for select countries in 2015,based on data from the World Bank.Use the table to answer the following questions:
 
-Based on data from the table,which country had the largest trade deficit as a percentage of GDP in 2015?

Accepted Answer

A)   Belgium
B)   Chile
C)   United States
D)   South Korea
E)   AustraliaF) C) and D)
G) B) and D)

Question 20

Use the following scenario to answer the following questions:
Esther and Ebenezer produce hamburgers and hot dogs.Esther can produce six hamburgers per hour or four hot dogs per hour.Ebenezer can produce three hamburgers per hour or one hot dog per hour.
-Based on the scenario,Esther's opportunity cost of one hot dog is ________ hamburgers.

Accepted Answer

A)   three
B)   one and a half
C)   six
D)   four
E)   eightF) A) and E)
G) A) and C)

Exam 19: International Trade

Why do politicians sometimes resist free trade and "globalization"?

Correct Answer
verified

List three trade-restrictive policies.

Correct Answer
verified
Trade-restrictive po...
View Answer

A tariff is a tax imposed on ________ good.

Correct Answer
verified

Graphically illustrate the lost consumer surplus associated with imposing a quota on imports.What happens to this lost surplus?

Correct Answer
verified
When the quota is imposed,the supply cur...
View Answer

Use the following scenario to answer the following questions: Karl and Jager produce cars and trucks.Karl can produce 10 cars per hour or 5 trucks per hour.Jager can produce 12 cars per hour or 4 trucks per hour. -Based on the scenario,Jager's opportunity cost of one truck is ________ car(s) .

Correct Answer
verified

Correct Answer
verified

A rich nation will trade with a poor nation (and vice versa) because the

Correct Answer
verified

Correct Answer
verified

Describe what the market effects on a good would be in the face of a quota,a tariff,and a complete ban on imports.

Correct Answer
verified
The demand for the product is the same i...
View Answer

Use the following graph to answer the following questions: -What is the price of a car if this is a nontrading (closed) economy?

Correct Answer
verified

Correct Answer
verified

What is the maximum number of each item that can be produced if each worker fully specializes and produces according to his comparative advantage?

Correct Answer
verified

Which of the following trade agreements caused trade between the United States,Canada,and Mexico to double?

Correct Answer
verified

Which of the following trade agreements is a binding agreement to reduce trade barriers between the United States and Mexico?

Correct Answer
verified

Use the following scenario to answer the following questions: Karl and Jager produce cars and trucks.Karl can produce 10 cars per hour or 5 trucks per hour.Jager can produce 12 cars per hour or 4 trucks per hour. -Based on the scenario,Karl's opportunity cost of one car is ________ truck(s) .

Correct Answer
verified

A tax on imports is known as a(n)

Correct Answer
verified

Which of the following international organizations,founded in 1995,facilitates trade disputes between nations?

Correct Answer
verified

Trade balance is

Correct Answer
verified

In the domestic market following the imposition of an import quota,imports ,domestic production ,and prices .

Correct Answer
verified

Use the following scenario to answer the following questions: Karl and Jager produce cars and trucks.Karl can produce 10 cars per hour or 5 trucks per hour.Jager can produce 12 cars per hour or 4 trucks per hour. -Based on the scenario,which of the following is true?

Correct Answer
verified

Exam 19: International Trade

Why do politicians sometimes resist free trade and "globalization"?

Correct AnswerverifiedShow Answer

List three trade-restrictive policies.

Correct AnswerverifiedTrade-restrictive po...View AnswerShow Answer

A tariff is a tax imposed on ________ good.

Correct AnswerverifiedShow Answer

Graphically illustrate the lost consumer surplus associated with imposing a quota on imports.What happens to this lost surplus?

Correct AnswerverifiedWhen the quota is imposed,the supply cur...View AnswerShow Answer

Use the following scenario to answer the following questions: Karl and Jager produce cars and trucks.Karl can produce 10 cars per hour or 5 trucks per hour.Jager can produce 12 cars per hour or 4 trucks per hour. -Based on the scenario,Jager's opportunity cost of one truck is ________ car(s) .

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A rich nation will trade with a poor nation (and vice versa) because the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Describe what the market effects on a good would be in the face of a quota,a tariff,and a complete ban on imports.

Correct AnswerverifiedThe demand for the product is the same i...View AnswerShow Answer

Use the following graph to answer the following questions: -What is the price of a car if this is a nontrading (closed) economy?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What is the maximum number of each item that can be produced if each worker fully specializes and produces according to his comparative advantage?

Correct AnswerverifiedShow Answer

Which of the following trade agreements caused trade between the United States,Canada,and Mexico to double?

Correct AnswerverifiedShow Answer

Which of the following trade agreements is a binding agreement to reduce trade barriers between the United States and Mexico?

Correct AnswerverifiedShow Answer

Use the following scenario to answer the following questions: Karl and Jager produce cars and trucks.Karl can produce 10 cars per hour or 5 trucks per hour.Jager can produce 12 cars per hour or 4 trucks per hour. -Based on the scenario,Karl's opportunity cost of one car is ________ truck(s) .

Correct AnswerverifiedShow Answer

A tax on imports is known as a(n)

Correct AnswerverifiedShow Answer

Which of the following international organizations,founded in 1995,facilitates trade disputes between nations?

Correct AnswerverifiedShow Answer

Trade balance is

Correct AnswerverifiedShow Answer

In the domestic market following the imposition of an import quota,imports ________,domestic production ________,and prices ________.

Correct AnswerverifiedShow Answer

Use the following scenario to answer the following questions: Karl and Jager produce cars and trucks.Karl can produce 10 cars per hour or 5 trucks per hour.Jager can produce 12 cars per hour or 4 trucks per hour. -Based on the scenario,which of the following is true?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Trade-restrictive po...
View Answer

Correct Answer
verified

Correct Answer
verified
When the quota is imposed,the supply cur...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The demand for the product is the same i...
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

In the domestic market following the imposition of an import quota,imports ,domestic production ,and prices .

Correct Answer
verified

Correct Answer
verified