17–72
According to the graph shown, if the economy opens itself to free trade, it will become a:
123. This graph demonstrates the domestic demand and supply for a good, as well as a quota and the
world price for that good.
17–73
According to the graph shown, if the economy opens itself to free trade, producer surplus will:
124. This graph demonstrates the domestic demand and supply for a good, as well as a quota and the
world price for that good.
17–74
According to the graph shown, if the government restricts trade, area G represents:
125. This graph demonstrates the domestic demand and supply for a good, as well as a quota and the
world price for that good.
17–75
According to the graph shown, if the government restricts free trade, area G represents:
126. This graph demonstrates the domestic demand and supply for a good, as well as a quota and the
world price for that good.
17–76
According to the graph shown, if the government decides to restrict trade, a deadweight loss is created
equal to area(s):
127. This graph demonstrates the domestic demand and supply for a good, as well as a quota and the
world price for that good.
17–77
As shown in the graph, when a government imposes a quota, the outcome differs from that of a tariff
being imposed in that area:
128. This graph demonstrates the domestic demand and supply for a good, as well as a quota and the
world price for that good.
As shown in the graph, when a government imposes a quota, consumer surplus will:
129. A quota has all of the following impacts except:
130. As a general rule, free trade:
131. As a general rule, free trade:
132. In general, one of the results of free trade is that the owners of domestically:
133. Americans whose jobs have been lost to free trade should, in theory:
134. The great Franco-American cheese war of 2009 began with:
135. The World Trade Organization (WTO) is an international organization designed to:
136. Every government has its own set of policies to govern the economy such as:
137. Every government’s set of policies used to govern their economy:
138. The problem of inconsistent standards across nations can be managed by:
139. When a nation imposes a blanket standard on imports, it refers to policies that:
140. Blanket standards on imports usually address issues affecting:
17–81
141. Import standards on specific countries are:
142. Import standards on specific countries usually address issues affecting:
143. The fair trade movement:
144. The restriction or prohibition of trade in order to put political pressure on a country is:
Chapter 17 Test Bank Summary
Category
# of Quest
ions
AACSB: Knowledge Application
16
AACSB: Reflective Thinking
128
Accessibility: Keyboard Navigation
78
17–82
Blooms: Apply
16
Blooms: Remember
38
Blooms: Understand
90
Difficulty: 01 Easy
38
Difficulty: 02 Medium
90
Difficulty: 03 Hard
16
Learning Objective: 17-
01 Define comparative advantage and list some root causes of comparative advantage o
n a national level.
38
Learning Objective: 17-02 Determine whether a country will become a net-
importer or net-exporter of a good when it moves from autarky to free trade.
27
Learning Objective: 17-
03 Calculate the change in surplus and the distribution of benefits within a market when
a country opens up to trade.
16
Learning Objective: 17-
04 Identify when and how an economy’s trade policies affect world supply of and
world demand for a good.
9
Learning Objective: 17-
05 Explain the effect of a tariff on quantity, price, and the distribution of surplus.
25
Learning Objective: 17-
06 Explain the effect of an import quota on quantity, price, and the distribution of surpl
us.
14
Learning Objective: 17-
07 Describe the effects of trade on the factor distribution of income.
8
Learning Objective: 17-
08 Discuss the challenges of establishing environmental or labor standards in internatio
nal markets.
7
Topic: Distribution of Benefits with Trade
13
Topic: Import vs. Export
27
Topic: International Labor and Capital
7
Topic: International Trade
38
Topic: Labor and Environmental Standards
8
Topic: Quotas
13
Topic: Tariffs
21
Topic: Trade Policies and World Market
12
Topic: Trade Restrictions
5