Question 1

Foreign factories produce ________ of the shoes New Balance sells in the United States.
A)none
B)less than 15 percent
C)roughly half
D)about 75 percent

Accepted Answer

According to the article, New Balance produces about 25% of its shoes in the United States and imports the rest, indicating that about 75% of the shoes are produced in foreign factories.

Question 2

Which of the following statements is true?
A)Japan is more dependent on foreign trade than is the United States.
B)Imports and exports account for over one-half of the GDP of Belgium.
C)France is the leading exporting country,accounting for 10 percent of total world exports.
D)Because the cost of labor used on farms is so high,the United States exports very little of its wheat,rice and corn crops.

Accepted Answer

According to the information provided, imports and exports account for over one-half of the GDP of Belgium. The other statements are either false (A and C) or unsupported by the given information (D).

Question 3

Which of the following statements about the importance of trade to the U.S.economy is true?
A)Since 1950,both exports and imports have steadily decreased as a fraction of U.S.gross domestic product.
B)Overall,about 80 percent of U.S.manufacturing jobs depend directly or indirectly on exports.
C)The United States is the second largest exporter in the world.
D)The U.S.economy is highly dependent on international trade for growth in its gross domestic product.

Accepted Answer

C

Question 4

Goods and services bought domestically but produced in other countries are referred to as
A)exports.
B)imports.
C)transfer payments.
D)foreign consumption.

Accepted Answer

Imports are goods and services that are produced in other countries and bought domestically. Exports, on the other hand, are goods and services produced domestically and sold in other countries. Transfer payments are payments made without the expectation of receiving goods or services in return, while foreign consumption is not a commonly used economic term.

Question 5

Despite the Obama administration's support of the Trans-Pacific Partnership (TPP),the AFL-CIO labor union has argued that the TPP will not
A)create jobs.
B)protect the environment.
C)ensure safe imports.
D)all of the above

Accepted Answer

The question states that the AFL-CIO labor union argues that the TPP will not create jobs, protect the environment, or ensure safe imports. Therefore, the best choice is D, which includes all of these options.

Question 6

Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because
A)they do not want to offend their employers who want them.
B)politicians lobby to convince workers the restrictions will make them better off.
C)they believe the restrictions will protect their jobs.
D)they don't understand that the restrictions will threaten their jobs.

Accepted Answer

Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because they believe the restrictions will protect their jobs.

Question 7

Which of the following statements is true?
A)Exports benefit trading countries because exports create jobs.Imports do not benefit trading countries because they result in a loss of jobs.
B)Each year China exports about 50 percent of its wheat crop and 40 percent of its rice crop.
C)Most of the leading exporting countries are large,high-income countries.
D)All sectors of the U.S.economy are affected equally by international trade.

Accepted Answer

According to data from the World Trade Organization, the leading exporting countries are typically larger, high-income countries such as China, the United States, Germany, and Japan. Option A is false as imports can also create jobs in trading countries. Option B is incorrect as China is not a major exporter of wheat or rice. Option D is incorrect as different sectors of the U.S. economy are affected differently by international trade.

Question 8

When BMW,an German company,purchases a welding machine that was made in Toronto,the purchase is
A)both a German and a Canadian import.
B)a German import and a Canadian export.
C)a German export and a Canadian import.
D)neither an export nor an import for either country.

Accepted Answer

The answer of When BMW,an German company,purchases a welding machine...

Question 9

In 2014,the largest exporter in the world was
A)Japan.
B)Germany.
C)China.
D)the United States.

Accepted Answer

In 2014, China surpassed the United States to become the largest exporter in the world. Germany and Japan also have strong export economies, but they were not the largest exporter in 2014.

Question 10

When Roxanne,a U.S.citizen,purchases a designer dress from Barneys of New York that was made in Milan,the purchase is
A)both a U.S.and an Italian import.
B)a U.S.import and an Italian export.
C)a U.S.export and an Italian import.
D)neither an export nor an import for either the United States or Italy.

Accepted Answer

The purchase is a U.S. import because Roxanne, a U.S. citizen, bought the dress from Barneys in New York. It is also an Italian export because the dress was made in Milan and sold to a buyer in another country (the United States).

Question 11

A tariff is a tax imposed by a government on
A)exports.
B)services.
C)imports.
D)luxury items.

Accepted Answer

A tariff is a tax that is imposed by a government on imports. This is done in order to protect domestic industries from foreign competition, as well as to generate revenue for the government.

Question 12

Twenty-nine countries in Europe have eliminated all tariffs with each other.This group of countries is known as the
A)European Union.
B)United Federation of Europe.
C)Gruppo Euro.
D)European Free Trade Association.

Accepted Answer

The group of countries that have eliminated all tariffs with each other is known as the European Union (EU). The other options, United Federation of Europe and Gruppo Euro, are not official names of any group of European countries. The European Free Trade Association (EFTA) is a separate organization that includes some European countries but is not the group of countries that have eliminated all tariffs with each other.

Question 13

In the 1930s,the United States charged an average tariff rate ________.Today,the rate is ________.
A)of 100 percent;20 percent
B)above 50 percent;less than 1.5 percent
C)of less than 10 percent;over 40 percent
D)of 17 percent;33 percent

Accepted Answer

The answer of In the 1930s,the United States charged an...

Question 14

With the proposed TPP tariff changes on imported shoes,New Balance would be ________ by the change in prices on some of the imported shoes sold by other companies that compete with New Balance's U.S.-produced shoes,and New Balance would be ________ because of the price it could now charge for the shoes it imports from TPP countries.
A)hurt;helped
B)hurt;hurt
C)helped;hurt
D)helped;helped

Accepted Answer

New Balance would be hurt by the change in prices on some of the imported shoes sold by other companies that compete with New Balance's U.S.-produced shoes as they would become cheaper due to the tariff changes, making them more appealing to customers. However, New Balance would be helped because of the price it could now charge for the shoes it imports from TPP countries since the tariff changes would make them less expensive.

Question 15

NAFTA refers to a 1994 agreement that eliminated most tariffs among which countries?
A)Canada,the United Kingdom,and Mexico
B)the United States,the United Kingdom,and Mexico
C)the United States,Canada,and Mexico
D)the United States,Mexico,and Cuba

Accepted Answer

NAFTA stands for the North American Free Trade Agreement, which was signed in 1994 between the three countries of the United States, Canada, and Mexico. Therefore, the correct choice is option C. The other choices are incorrect because the United Kingdom and Cuba are not part of NAFTA.

Question 16

Today,the United States charges an average tariff rate
A)that is more than its average tariff rate in 1930.
B)which is greater than any other high-income country.
C)of less than 1.5 percent.
D)that exceeds 50 percent.

Accepted Answer

The text states that the United States charges an average tariff rate of less than 1.5 percent, therefore option C is the correct answer. Option A is incorrect as the text does not provide information about the US average tariff rate in 1930. Option B is incorrect as the text does not compare the US tariff rate to other high-income countries. Option D is incorrect as the text states that the US tariff rate is less than 1.5 percent, which is far below 50 percent.

Question 17

As a percentage of GDP,exports are greater than imports for which of the following countries?
A)the United Kingdom
B)France
C)the United States
D)China

Accepted Answer

According to the World Bank data from 2019, China's exports as a percentage of GDP were 19.5%, whereas imports were 18.5%, indicating that exports are greater than imports. The United Kingdom's exports were 27.7% of GDP, and imports were 30.1%, indicating that imports are greater than exports. France's exports were 31.9% of GDP, and imports were 32.6%, indicating that imports are greater than exports. The United States' exports were 12.4% of GDP, and imports were 15.4%, indicating that imports are greater than exports.

Question 18

The Trans-Pacific Partnership (TPP)would ________ tariffs on most goods and services shipped between partnership countries and also ________ so-called non-tariff barriers to trade,such the licenses governments require to import some goods.
A)eliminate;reduce
B)raise;raise
C)lower;raise
D)lower;eliminate

Accepted Answer

The TPP aims to eliminate tariffs on most goods and services between partner countries, meaning there would be no tariffs applied. Additionally, it aims to reduce non-tariff barriers to trade, such as licensing requirements for certain imported goods, making it easier to trade between partner countries.

Question 19

Exports are domestically produced goods and services
A)sold to other countries.
B)sold to the government.
C)sold at home.
D)which are used to produce other goods and services.

Accepted Answer

Exports refer to domestically produced goods and services that are sold to other countries.

Question 20

Today,________ of shoes sold in the United States are made overseas?
A)about 25 percent
B)just over half
C)almost 75 percent
D)99 percent

Accepted Answer

The answer of Today,________ of shoes sold in the United...

Quiz 9: Comparative Advantage and the Gains From International Trade

Foreign factories produce ________ of the shoes New Balance sells in the United States.

Which of the following statements is true?

Which of the following statements about the importance of trade to the U.S.economy is true?

Goods and services bought domestically but produced in other countries are referred to as

Despite the Obama administration's support of the Trans-Pacific Partnership (TPP) ,the AFL-CIO labor union has argued that the TPP will not

Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

Which of the following statements is true?

When BMW,an German company,purchases a welding machine that was made in Toronto,the purchase is

In 2014,the largest exporter in the world was

When Roxanne,a U.S.citizen,purchases a designer dress from Barneys of New York that was made in Milan,the purchase is

A tariff is a tax imposed by a government on

Twenty-nine countries in Europe have eliminated all tariffs with each other.This group of countries is known as the

In the 1930s,the United States charged an average tariff rate .Today,the rate is .

NAFTA refers to a 1994 agreement that eliminated most tariffs among which countries?

Today,the United States charges an average tariff rate

As a percentage of GDP,exports are greater than imports for which of the following countries?

The Trans-Pacific Partnership (TPP) would tariffs on most goods and services shipped between partnership countries and also so-called non-tariff barriers to trade,such the licenses governments require to import some goods.

Exports are domestically produced goods and services

Today,________ of shoes sold in the United States are made overseas?

Quiz 9: Comparative Advantage and the Gains From International Trade

Foreign factories produce ________ of the shoes New Balance sells in the United States.

Which of the following statements is true?

Which of the following statements about the importance of trade to the U.S.economy is true?

Goods and services bought domestically but produced in other countries are referred to as

Despite the Obama administration's support of the Trans-Pacific Partnership (TPP) ,the AFL-CIO labor union has argued that the TPP will not

Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

Which of the following statements is true?

When BMW,an German company,purchases a welding machine that was made in Toronto,the purchase is

In 2014,the largest exporter in the world was

When Roxanne,a U.S.citizen,purchases a designer dress from Barneys of New York that was made in Milan,the purchase is

A tariff is a tax imposed by a government on

Twenty-nine countries in Europe have eliminated all tariffs with each other.This group of countries is known as the

In the 1930s,the United States charged an average tariff rate ________.Today,the rate is ________.

NAFTA refers to a 1994 agreement that eliminated most tariffs among which countries?

Today,the United States charges an average tariff rate

As a percentage of GDP,exports are greater than imports for which of the following countries?

The Trans-Pacific Partnership (TPP) would ________ tariffs on most goods and services shipped between partnership countries and also ________ so-called non-tariff barriers to trade,such the licenses governments require to import some goods.

Exports are domestically produced goods and services

Today,________ of shoes sold in the United States are made overseas?

In the 1930s,the United States charged an average tariff rate .Today,the rate is .

The Trans-Pacific Partnership (TPP) would tariffs on most goods and services shipped between partnership countries and also so-called non-tariff barriers to trade,such the licenses governments require to import some goods.