Question 1

If the United States starts to import a good that had previously been produced in the United States, the market price of the good in the United States

Accepted Answer

When the United States starts importing a good, it typically means that the world market price is lower than the domestic price, leading to a decrease in the market price of the good in the United States.

Question 2

If an import quota is imposed on imports of shrimp into the United States, U.S. producers
And the U.S. economy will _________ .

Accepted Answer

U.S. producers will gain because the quota limits competition from foreign shrimp, allowing them to sell more at higher prices. However, the U.S. economy will lose because consumers face higher prices and less variety, and resources are not allocated efficiently.

Question 3

The figure above shows the U.S. demand and U.S. 
-supply curves for cherries. At a world price of $2 per pound, the production of cherries in the United States will equal

Accepted Answer

At a world price of $2 per pound, the production of cherries in the United States will equal 600,000 pounds, as indicated by the supply curve.

Question 4

If supporters of restrictions on imports argue that protection is needed to preserve a strategic industry, which of the following is being used?

Accepted Answer

The national security argument is used when protection is justified to preserve industries that are crucial for national defense and security.

Question 5

When the United States imposes a tariff on an imported good, the

Accepted Answer

A tariff increases the price of the imported good, leading to a decrease in the quantity purchased in the United States.

Question 6

What is the national security argument to support protection from international trade?

Accepted Answer

The national security argument for trade protection is that industries crucial for national defense should be protected to ensure they are available during wartime or emergencies.

Question 7

One of the major reasons why the United States exports jet airplanes is because Boeing faces__________Opportunity cost than firms in other nations in the production of such aircraft.

Accepted Answer

Boeing has a comparative advantage in producing jet airplanes, meaning it has a lower opportunity cost compared to firms in other nations. This allows the United States to export jet airplanes efficiently.

Question 8

As a result of importing a good, domestic producers______ the quantity produced and the price of the good_________ .

Accepted Answer

When a country imports a good, domestic producers typically decrease the quantity produced because they face competition from foreign producers. This increased supply from imports generally leads to a decrease in the price of the good.

Question 9

When politicians debated the North American Free Trade Agreement (NAFTA), some told stories
Of U.S. workers whose jobs would be moved to Mexico. Which of the following arguments in favor
Of protection was being used?

Accepted Answer

The argument being used is the "Save domestic jobs argument," which suggests that free trade agreements like NAFTA could lead to job losses in the U.S. as companies move operations to countries with lower labor costs, such as Mexico.

Question 10

When a country exports a good, the ______to consumers is _______ the  ______to producers.

Accepted Answer

When a country exports a good, the loss to consumers (due to higher prices and reduced domestic supply) is smaller than the gain to producers (who benefit from higher prices and increased sales).

Question 11

$\begin{array} { c c c } 
\hline \begin{array} { c } 
\text { Price } \
\text { (dollars per unit) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded } \
\text { (units per day) }
\end{array} & \begin{array} { c } 
\text { Quantity supplied } \
\text { (units per day) }
\end{array} \
\hline 2 & 20 & 14 \
4 & 19 & 16 \
6 & 18 & 18 \
8 & 17 & 20 \
10 & 16 & 22 \
12 & 15 & 24 \
\hline
\end{array}$
-According to the above table, the country will import the good if the world price is less than_________
And will export the good if the world price is more than _______________.

Accepted Answer

The answer of \(\begin{array} { c c c } 
\hline...

Question 12

Which of the following chain of events occurs when a tariff is imposed on a good?

Accepted Answer

When a tariff is imposed, it raises the domestic price of the good, leading to a decrease in the quantity demanded and an increase in the domestic quantity supplied.

Question 13

When a tariff supporter argues that foreign producers are selling their products for prices below the costs of production, which of the following is being used?

Accepted Answer

The dumping argument is used when foreign producers are accused of selling products below the cost of production, often to undermine domestic industries.

Question 14

The figure above shows the U.S. demand and U.S. 
-supply curves for cherries. At a world price of $2 per pound, the total imports of cherries to the United States from other nations equals

Accepted Answer

The answer of The figure above shows the U.S. demand...

Question 15

Why are the losers from free international trade not fully compensated for their losses?

Accepted Answer

Identifying all losers and the size of their losses is extremely difficult, making it challenging to provide full compensation.

Question 16

A major reason why it is difficult to lower the barriers to free trade is

Accepted Answer

The uneven distribution of gains and losses from free trade makes it politically challenging to lower trade barriers, as some groups may lose out even if the overall economy benefits.

Question 17

When a country imports a good, the________to consumers is _________ the_____to producers.

Accepted Answer

When a country imports a good, consumers benefit from lower prices and increased variety, which typically results in a gain that is larger than the loss experienced by domestic producers who face increased competition.

Question 18

The national security argument is used by those who assert they want to

Accepted Answer

The national security argument is often used to justify limiting imports that compete with domestic producers crucial for national defense, ensuring that essential industries remain operational in times of conflict.

Question 19

Airlines in other countries buy airplanes from Boeing because

Accepted Answer

Boeing's prices are less than what the airlines would pay for planes built in their own country.

Question 20

Looking at the average tariff rate in the United States since 1930, we see that

Accepted Answer

Since 1930, the average tariff rate in the United States has generally trended downward due to trade liberalization and agreements like GATT and WTO.

Quiz 18: International Trade Policy

If the United States starts to import a good that had previously been produced in the United States, the market price of the good in the United States

If an import quota is imposed on imports of shrimp into the United States, U.S. producers And the U.S. economy will _________ .

The figure above shows the U.S. demand and U.S. -supply curves for cherries. At a world price of $2 per pound, the production of cherries in the United States will equal

If supporters of restrictions on imports argue that protection is needed to preserve a strategic industry, which of the following is being used?

When the United States imposes a tariff on an imported good, the

What is the national security argument to support protection from international trade?

One of the major reasons why the United States exports jet airplanes is because Boeing faces__________Opportunity cost than firms in other nations in the production of such aircraft.

As a result of importing a good, domestic producers the quantity produced and the price of the good___ .

When politicians debated the North American Free Trade Agreement (NAFTA) , some told stories Of U.S. workers whose jobs would be moved to Mexico. Which of the following arguments in favor Of protection was being used?

When a country exports a good, the __to consumers is _ the ____to producers.