Question 1

Import standards on specific countries:

Accepted Answer

A)  are less common than blanket standards.
B)  are more common than blanket standards.
C)  are used in equal amount to blanket standards.
D)  are easier to enforce than blanket standards.E) All of the above
F) A) and D)

Question 2

This graph demonstrates the domestic demand and supply for a good,as well as the world price for that good. 
According to the graph shown,if this economy were open to free trade,domestic producers would produce how many units?

Accepted Answer

A)  60
B)  115
C)  150
D)  90E) C) and D)
F) A) and B)

Question 3

This graph demonstrates the domestic demand and supply for a good,as well as the world price for that good. 
According to the graph shown,if this economy were to open to trade,domestic producers would increase:

Accepted Answer

A)  production by 75 units.
B)  production by 35 units.
C)  prices by $5.
D)  prices by $11.E) All of the above
F) A) and D)

Question 4

This graph demonstrates the domestic demand and supply for a good,as well as the world price for that good. 
According to the graph shown,if this economy were an autarky,producers would enjoy area:

Accepted Answer

A)  BCEFG
B)  BCDEFG
C)  G
D)  EFGE) B) and C)
F) A) and C)

Question 5

This graph demonstrates the domestic demand and supply for a good,as well as a quota and the world price for that good. 
Once an economy decides to impose a quota,as is the case in the graph shown,consumer surplus will:

Accepted Answer

A)  decrease by EFGH.
B)  increase by EFGH.
C)  decrease by FG only.
D)  increase to ABCD.E) C) and D)
F) B) and C)

Question 6

This graph demonstrates the domestic demand and supply for a good,as well as the world price for that good. 
According to the graph shown,if this economy were to open to trade,the amount consumed domestically would:

Accepted Answer

A)  increase by 35.
B)  increase by 40.
C)  decrease by 40.
D)  increase by 75.E) A) and C)
F) None of the above

Question 7

This graph demonstrates the domestic demand and supply for a good,as well as a tariff and the world price for that good. 
According to the graph shown,if this economy were open to free trade,and decided to impose a tariff,the domestic quantity demanded would:

Accepted Answer

A)  decrease from 1500 to 1150.
B)  increase from 1150 to 1500.
C)  increase from 815 to 1150.
D)  decrease from 1150 to 815.E) A) and D)
F) C) and D)

Question 8

This graph demonstrates the domestic demand and supply for a good,as well as a tariff and the world price for that good. 
According to the graph shown,if this economy is an autarky,its equilibrium price is:

Accepted Answer

A)  $175 at a quantity of 815.
B)  $215 at a quantity of 500.
C)  $130 at a quantity of 1150.
D)  $130 at a quantity of 500.E) None of the above
F) All of the above

Question 9

This graph demonstrates the domestic demand and supply for a good,as well as a tariff and the world price for that good. 
According to the graph shown,if the economy were operating under free trade,then imposed a tariff,the overall impact on surplus would be:

Accepted Answer

A)  a net loss of IL.
B)  a net gain of IJKL.
C)  a net loss of IJKL.
D)  a net gain of FGHIJKL.E) A) and B)
F) A) and C)

Question 10

The Multifibre Arrangement and African Growth and Opportunity Act:

Accepted Answer

A)  explains why a country not suitable for trade could become a major exporter.
B)  altered trade patterns from those that would have occurred in the absence of these agreements.
C)  was a group of restrictive trade treaties between individual countries,and agreements exempting others from the restrictions.
D)  All of these are true.E) B) and D)
F) A) and D)

Question 11

A country with plenty of capital and little land may have a comparative advantage in:

Accepted Answer

A)  land-intensive activities.
B)  capital-intensive activities.
C)  labor-intensive activities.
D)  technology-intensive activities.E) B) and C)
F) A) and C)

Question 12

Profits earned by foreign firms or governments under a quota are called:

Accepted Answer

A)  quota rents.
B)  quota revenue.
C)  trade costs.
D)  trade rents.E) All of the above
F) None of the above

Question 13

This graph demonstrates the domestic demand and supply for a good,as well as a quota and the world price for that good. 
According to the graph shown,once this economy decides to restrict its free trade,area G represents:

Accepted Answer

A)  quota rents.
B)  government tax revenues.
C)  deadweight loss.
D)  transferred surplus.E) A) and B)
F) C) and D)

Question 14

This graph demonstrates the domestic demand and supply for a good,as well as a tariff and the world price for that good. 
According to the graph shown,if the economy decides to impose a tariff,the government can expect to raise how much in government revenues?

Accepted Answer

A)  $19,500.
B)  $27,000.
C)  $34,500.
D)  $37,500.E) A) and D)
F) B) and C)

Question 15

As workforces become more educated in countries with comparative advantages in labor-intensive products,cheap labor becomes:

Accepted Answer

A)  less abundant relative to skilled labor.
B)  more abundant relative to skilled labor.
C)  more abundant relative to capital.
D)  None of these is true.E) A) and D)
F) B) and C)

Question 16

This graph demonstrates the domestic demand and supply for a good,as well as a tariff and the world price for that good. 
According to the graph shown,the change in producer surplus brought about by the imposition of the tariff is:

Accepted Answer

A)  a loss of HIJKL.
B)  an increase of HIJKL.
C)  a loss of H.
D)  an increase of H.E) B) and D)
F) B) and C)

Question 17

Once a new technology spreads and is adopted by many countries,

Accepted Answer

A)  the first country to use it may lose its comparative advantage.
B)  the first country to use it will lose its absolute advantage.
C)  other countries will perfect it,putting them at an absolute advantage.
D)  the country will have to have strict intellectual property rights protections in place.E) None of the above
F) A) and B)

Question 18

This graph demonstrates the domestic demand and supply for a good,as well as the world price for that good. 
According to the graph shown,if this were depicting an autarky,the equilibrium price would be:

Accepted Answer

A)  $23
B)  $16
C)  $11
D)  $45E) None of the above
F) All of the above

Question 19

When two countries specialize and trade:

Accepted Answer

A)  both can enjoy more output than either could produce on its own.
B)  they can have consumption possibilities beyond their production possibilities.
C)  surplus can be gained by both countries.
D)  All of these are true.E) A) and B)
F) B) and C)

Question 20

This graph demonstrates the domestic demand and supply for a good,as well as a tariff and the world price for that good. 
According to the graph shown,if this economy were to open to free trade,the domestic demand would be:

Accepted Answer

A)  250.
B)  500.
C)  1150.
D)  1500.E) A) and D)
F) A) and C)

Exam 17: International Trade

This graph demonstrates the domestic demand and supply for a good,as well as the world price for that good. According to the graph shown,if this economy were to open to trade,the amount consumed domestically would:

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This graph demonstrates the domestic demand and supply for a good,as well as a tariff and the world price for that good. According to the graph shown,the change in producer surplus brought about by the imposition of the tariff is:

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Profits earned by foreign firms or governments under a quota are called:

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Import standards on specific countries:

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This graph demonstrates the domestic demand and supply for a good,as well as a tariff and the world price for that good. According to the graph shown,if the economy decides to impose a tariff,the government can expect to raise how much in government revenues?

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The Multifibre Arrangement and African Growth and Opportunity Act:

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This graph demonstrates the domestic demand and supply for a good,as well as the world price for that good. According to the graph shown,if this economy were to open to trade,domestic producers would increase:

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This graph demonstrates the domestic demand and supply for a good,as well as a quota and the world price for that good. According to the graph shown,once this economy decides to restrict its free trade,area G represents:

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This graph demonstrates the domestic demand and supply for a good,as well as the world price for that good. According to the graph shown,if this were depicting an autarky,the equilibrium price would be:

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This graph demonstrates the domestic demand and supply for a good,as well as a tariff and the world price for that good. According to the graph shown,if this economy were open to free trade,and decided to impose a tariff,the domestic quantity demanded would:

Correct AnswerverifiedShow Answer

A country with plenty of capital and little land may have a comparative advantage in:

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Once a new technology spreads and is adopted by many countries,

Correct AnswerverifiedShow Answer

This graph demonstrates the domestic demand and supply for a good,as well as a tariff and the world price for that good. According to the graph shown,if the economy were operating under free trade,then imposed a tariff,the overall impact on surplus would be:

Correct AnswerverifiedShow Answer

This graph demonstrates the domestic demand and supply for a good,as well as a quota and the world price for that good. Once an economy decides to impose a quota,as is the case in the graph shown,consumer surplus will:

Correct AnswerverifiedShow Answer

As workforces become more educated in countries with comparative advantages in labor-intensive products,cheap labor becomes:

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This graph demonstrates the domestic demand and supply for a good,as well as the world price for that good. According to the graph shown,if this economy were an autarky,producers would enjoy area:

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This graph demonstrates the domestic demand and supply for a good,as well as a tariff and the world price for that good. According to the graph shown,if this economy is an autarky,its equilibrium price is:

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When two countries specialize and trade:

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This graph demonstrates the domestic demand and supply for a good,as well as the world price for that good. According to the graph shown,if this economy were open to free trade,domestic producers would produce how many units?

Correct AnswerverifiedShow Answer

This graph demonstrates the domestic demand and supply for a good,as well as a tariff and the world price for that good. According to the graph shown,if this economy were to open to free trade,the domestic demand would be:

Correct AnswerverifiedShow Answer

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