Question 1

-Refer to the above diagram pertaining to two nations and a specific product. Lines FA and GB are:

Accepted Answer

A)   domestic supply curves for two countries.
B)   domestic demand curves for two countries.
C)   import demand curves for two countries.
D)   export supply curves for two countries.E) A) and C)
F) B) and D)

Question 2

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) B) and D)
F) A) and D)

Question 3

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 effect of the import quota on domestic price and domestic consumption is: A)  the same as that of a tariff of PcPt. B)  the same as that of a tariff of PtPa. C)  the same as that of a tariff of PcPa. D)  to raise price by more and reduce consumption less than a tariff of PcPt." 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 effect of the import quota on domestic price and domestic consumption is:

Accepted Answer

A)   the same as that of a tariff of PcPt.
B)   the same as that of a tariff of PtPa.
C)   the same as that of a tariff of PcPa.
D)   to raise price by more and reduce consumption less than a tariff of PcPt.E) B) and C)
F) All of the above

Question 4

Which products were the leading imports of Canada in 2011

Accepted Answer

A)   energy products
B)   machinery and equipment
C)   agricultural and fishing products
D)   petroleumE) A) and C)
F) B) and D)

Question 5

Which of the following is one of the trade liberalizations proposed by the World Trade Organization (WTO) ?

Accepted Answer

A)   better use of strategic trade policy
B)   more widespread use of diversification-for-stability as the case for protection
C)   increase in the use of quotas to replace tariffs to improve economic efficiency.
D)   reduction in agricultural subsidies that distort trade.E) A) and C)
F) A) and D)

Question 6

The following information is about the cost ratios for two products-fish (F)  and chicken (C) -in Singsong and Harmony. Assume that production occurs under conditions of constant costs and these are the only two nations in the world. If in Singsong: 1F = 2C and, in Harmony: 1F = 4C then, in Singsong the domestic real cost of each chicken:

Accepted Answer

A)   is 1/2 a fish.
B)   is 2 fish.
C)   increases with the level of fish caught.
D)   decreases with the level of fish caught.E) All of the above
F) A) and B)

Question 7

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 8

The data in the tables below, show that production in:

Accepted Answer

A)   Germany is subject to increasing domestic opportunity costs and the U.S. to constant domestic opportunity costs.
B)   the U.S. is subject to increasing domestic opportunity costs and Germany to constant domestic opportunity costs.
C)   both Germany and the U.S. are subject to constant domestic opportunity costs.
D)   both Germany and the U.S. are subject to increasing domestic opportunity costs.E) A) and C)
F) A) and B)

Question 9

A nation's export supply curve for a specific product:

Accepted Answer

A)   is upward sloping.
B)   shows the amount of the product it will export at prices below its domestic price.
C)   lies below its import demand curve for the product.
D)   depends on domestic supply of the product, but not on domestic demand.E) A) and C)
F) All of the above

Question 10

The proponents of the cheap foreign labour argument mistakenly:

Accepted Answer

A)   look at the labour costs per unit rather than labour costs per hour.
B)   look at the labour costs per hour rather than labour costs per unit of output.
C)   believe that labour costs per unit are not important.
D)   believe that the wage rates in Canada should be reduced in order to compete with low-wage nations.E) All of the above
F) C) and D)

Question 11

Studies show that:

Accepted Answer

A)   it is impossible to estimate the benefits of trade barriers.
B)   costs and benefits of trade barriers are about equal.
C)   benefits of trade barriers exceed their costs in less developed nations.
D)   costs of trade barriers exceed their benefits, creating an efficiency loss for society.E) None of the above
F) All of the above

Question 12

The data given is for two hypothetical nations, Wat and Xat. The nations have the Production Possibilities Curves (PPC)  for units of rice and corn as given below.
 
-Refer to the diagram below in which, line AB is the Canadian production possibility curve and AC is its trading possibilities curve. We can conclude that Canada:

Accepted Answer

A)   has chosen to specialize in the production of cheese.
B)   has chosen to specialize in the production of beef.
C)   has decided to trade beef for cheese.
D)   is relatively more efficient than its trading partners in producing both cheese and beef.E) None of the above
F) B) and D)

Question 13

Tariffs and import quotas meant to increase domestic employment also eliminate domestic jobs in export industries.

Accepted Answer

A) True 
 B)False

Question 14

A nation's import demand curve for a specific product:

Accepted Answer

A)   is upsloping.
B)   shows the amount of the product it will import at prices below its domestic price.
C)   lies above its export supply curve for the product.
D)   depends on domestic demand for the product, but not on domestic supply.E) A) and B)
F) None of the above

Question 15

The following information is about the cost ratios for two products-fish (F)  and chicken (C) -in Singsong and Harmony. Assume that production occurs under conditions of constant costs and these are the only two nations in the world. If in Singsong: 1F = 2C and, in Harmony: 1F = 4C:

Accepted Answer

A)   Singsong will both produce chicken and catch fish.
B)   Harmony will both produce chicken and catch fish.
C)   Harmony will produce chicken and Singsong will catch fish.
D)   Singsong will produce chicken and Harmony will catch fish.E) None of the above
F) B) and C)

Question 16

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 17

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) B) and C)
F) B) and D)

Question 18

The data given is for two hypothetical nations, Wat and Xat. The nations have the Production Possibilities Curves (PPC)  for units of rice and corn as given below.
 1/3 unit of corn and should not specialize in production of it if the two nations decide to trade with each other. C)  corn is 5 units of rice. D)  corn is 1/5 unit of rice." class="answers-bank-image d-inline" rel="preload" >
-Refer to the above data, in country Wat, the comparative cost of 1 unit of:

Accepted Answer

A)   rice is 3 units of corn.
B)   rice is 1/3 unit of corn and should not specialize in production of it if the two nations decide to trade with each other.
C)   corn is 5 units of rice.
D)   corn is 1/5 unit of rice.E) B) and D)
F) C) and D)

Question 19

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. A quota of wy will:   A)  lower domestic price and increase domestic consumption. B)  increase the revenues of domestic producers by areas E + F + K. C)  increase the revenues of domestic producers by areas G + H. D)  increase the revenues of domestic producers by areas E + F + G + H + J." class="answers-bank-image d-inline" rel="preload" >
-Refer to the diagram below, 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. A quota of wy will: 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. A quota of wy will:   A)  lower domestic price and increase domestic consumption. B)  increase the revenues of domestic producers by areas E + F + K. C)  increase the revenues of domestic producers by areas G + H. D)  increase the revenues of domestic producers by areas E + F + G + H + J." class="answers-bank-image d-inline" rel="preload" >

Accepted Answer

A)   lower domestic price and increase domestic consumption.
B)   increase the revenues of domestic producers by areas E + F + K.
C)   increase the revenues of domestic producers by areas G + H.
D)   increase the revenues of domestic producers by areas E + F + G + H + J.E) B) and D)
F) B) and C)

Question 20

The major beneficiaries of a tariff on a product are the:

Accepted Answer

A)   domestic producers of the product.
B)   domestic consumers of the product.
C)   foreign consumers of the product.
D)   foreign producers of the product.E) A) and D)
F) A) and C)

Exam 16: International Trade

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

Correct Answer
verified

The data given is for two hypothetical nations, Wat and Xat. The nations have the Production Possibilities Curves (PPC) for units of rice and corn as given below. -Refer to the above data, in country Wat, the comparative cost of 1 unit of:

Correct Answer
verified

Correct Answer
verified

Studies show that:

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

The proponents of the cheap foreign labour argument mistakenly:

Correct Answer
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The data in the tables below, show that production in:

Correct Answer
verified

The following information is about the cost ratios for two products-fish (F) and chicken (C) -in Singsong and Harmony. Assume that production occurs under conditions of constant costs and these are the only two nations in the world. If in Singsong: 1F = 2C and, in Harmony: 1F = 4C:

Correct Answer
verified

Which products were the leading imports of Canada in 2011

Correct Answer
verified

A nation's import demand curve for a specific product:

Correct Answer
verified

-Refer to the diagram below, 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. A quota of wy will:

Correct Answer
verified

Which of the following is one of the trade liberalizations proposed by the World Trade Organization (WTO) ?

Correct Answer
verified

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

Correct Answer
verified

Dumping is:

Correct Answer
verified

Correct Answer
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-Refer to the above diagram pertaining to two nations and a specific product. Lines FA and GB are:

Correct Answer
verified

The major beneficiaries of a tariff on a product are the:

Correct Answer
verified

A nation's export supply curve for a specific product:

Correct Answer
verified

Tariffs and import quotas meant to increase domestic employment also eliminate domestic jobs in export industries.

Correct Answer
verified

-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 effect of the import quota on domestic price and domestic consumption is:

Correct Answer
verified

Exam 16: International Trade

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

Correct AnswerverifiedShow Answer

The data given is for two hypothetical nations, Wat and Xat. The nations have the Production Possibilities Curves (PPC) for units of rice and corn as given below. -Refer to the above data, in country Wat, the comparative cost of 1 unit of:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Studies show that:

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

The proponents of the cheap foreign labour argument mistakenly:

Correct AnswerverifiedShow Answer

The data in the tables below, show that production in:

Correct AnswerverifiedShow Answer

The following information is about the cost ratios for two products-fish (F) and chicken (C) -in Singsong and Harmony. Assume that production occurs under conditions of constant costs and these are the only two nations in the world. If in Singsong: 1F = 2C and, in Harmony: 1F = 4C:

Correct AnswerverifiedShow Answer

Which products were the leading imports of Canada in 2011

Correct AnswerverifiedShow Answer

A nation's import demand curve for a specific product:

Correct AnswerverifiedShow Answer

-Refer to the diagram below, 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. A quota of wy will:

Correct AnswerverifiedShow Answer

Which of the following is one of the trade liberalizations proposed by the World Trade Organization (WTO) ?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Dumping is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

-Refer to the above diagram pertaining to two nations and a specific product. Lines FA and GB are:

Correct AnswerverifiedShow Answer

The major beneficiaries of a tariff on a product are the:

Correct AnswerverifiedShow Answer

A nation's export supply curve for a specific product:

Correct AnswerverifiedShow Answer

Tariffs and import quotas meant to increase domestic employment also eliminate domestic jobs in export industries.

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. Sd + Q is the product supply curve after an import quota is imposed. The effect of the import quota on domestic price and domestic consumption is:

Correct AnswerverifiedShow Answer

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-Refer to the diagram below, 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. A quota of wy will:

Correct Answer
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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. S_d + Q is the product supply curve after an import quota is imposed. The effect of the import quota on domestic price and domestic consumption is:

Correct Answer
verified