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United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Export Quotas
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
92. By limiting the amount of foreign sourcing, local content laws are viewed as a means of jobs preservation for
domestic workers.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Domestic Content Requirements
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
93. Local content laws stipulate the maximum percentage of a product’s total value that must be produced domestically for
that product to be sold domestically.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Domestic Content Requirements
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
94. Local content laws are consistent with the principle of import substitution, in which domestic production replaces the
importation of goods from abroad.
a.
True
b.
False
ANSWER:
True
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Page 42
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Domestic Content Requirements
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
95. To the extent that a local content requirement forces firms to locate production in a high-cost nation, product price
rises and consumer surplus falls.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Domestic Content Requirements
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
96. A subsidy granted to import-competing producers results in a welfare loss to the economy by an amount equal to the
protective effect plus the consumption effect.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Subsidies
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
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Page 43
97. A subsidy granted to import-competing producers is intended to lead to increased domestic production and decreased
imports for the home country.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Subsidies
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
98. A subsidy granted to an import-competing producer shifts its supply schedule outward to the right.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Subsidies
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
99. A subsidy granted to an import-competing producer imposes a deadweight loss on the domestic economy equal to the
redistribution effect plus consumption effect.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Subsidies
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Page 44
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
100. A subsidy granted to import-competing producers reduces overall domestic welfare by the same amount as would a
tariff or quota that restricts imports by the same amount.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Subsidies
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
101. To the extent that subsidies granted to exporting firms reduce the foreign price of their goods, the subsidizing
country’s terms of trade worsen.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Subsidies
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
102. If the U.S. demand for Korean steel is price elastic, an export subsidy granted to Korean steel firms will increase
Korea’s export revenue.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
True / False
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Page 45
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Subsidies
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
103. International dumping occurs when foreign buyers are charged higher prices than domestic buyers for an identical
product, after allowing for transportation costs and tariff duties.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Dumping
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
104. Sporadic (distress) dumping would occur if domestic orange producers dispose of an excess quantity of oranges,
resulting from an abnormally large harvest, by selling them at lower prices abroad than at home.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Dumping
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
105. Predatory dumping would occur if Toyota Inc. of Japan sells autos to U.S. consumers at lower prices than to
Japanese consumers in order to put Chrysler Inc. out of business.
a.
True
b.
False
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ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Dumping
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
106. A firm would increase profits from dumping if it charges a lower price at home, where demand is inelastic, and a
higher price abroad where demand is elastic.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Dumping
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
107. The purpose of international dumping is to decrease a firm’s costs and increase its profits, compared to what would
be realized in the absence of dumping.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Dumping
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
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Page 47
108. A firm granting lifetime employment to its workers has the incentive to engage in international dumping during
periods of business recession and excess production capacity.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Dumping
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
109. A firm suffering idle plant capacity would minimize losses by selling its product abroad at a lower price than at
home, provided that the foreign price more than covers average variable cost.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Dumping
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
110. Under U.S. antidumping law, an antidumping duty can be levied when the U.S. Commerce Department determines
that a foreign product is being sold in the United States at less than fair value and the U.S. International Trade
Commission determines that the dumped product is causing economic harm to domestic producers.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
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Page 48
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Antidumping Regulations
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
111. The margin of dumping equals the amount by which the foreign price is greater than the domestic price, or the
amount by which the foreign price exceeds the cost of production.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Dumping
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
112. For most nations, the ratio of imports to total purchases in the public sector is much higher than in the private sector.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Other Nontariff Trade Barriers
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
113. According to the U.S. Buy American Act, federal government agencies cannot purchase materials and products from
U.S. suppliers if their prices are higher than those of foreign competitors.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Easy
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Page 49
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Other Nontariff Trade Barriers
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
114. For the United States, the Buy American Act has tended to increase consumer surplus for U.S. buyers of protected
merchandise.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Other Nontariff Trade Barriers
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
115. An effective Buy American law would tend to increase U.S. producer surplus at the expense of U.S. consumer
surplus.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Other Nontariff Trade Barriers
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
116. An effective Buy American law results in deadweight welfare losses for the United States in the form of the
protective effect and consumption effect.
a.
True
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Page 50
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Other Nontariff Trade Barriers
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
117. Although the Tokyo Round of international trade negotiations reduced the Buy-American restrictions of the U.S.
government, many state governments have maintained restrictive Buy-American policies.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Other Nontariff Trade Barriers
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
118. According to the cost-based definition of dumping, dumping begins to occur when a firm sells a product at a price
that is less than average variable cost.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Dumping
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
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Page 51
DATE MODIFIED:
6/22/2016 3:19 PM
119. If the Japanese demand for computers is elastic and the Canadian demand for computers is inelastic, a profit-
maximizing firm would charge a higher price to Canadian buyers than to Japanese buyers.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Dumping
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
120. If the Australian government imposes a domestic content requirement of 75 percent on autos, at least 25 percent of
an auto’s value must be produced in a foreign country if that auto is to be sold in Australia.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Domestic Content Requirements
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
121. During the 1980s, the U.S. government imposed sugar import quotas in an attempt to reduce its costs of maintaining
price supports for U.S. sugar growers.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
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Page 52
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Tariff-Rate Quota: A Two Tier Tariff
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
Figure 5.5 illustrates the television market for Mexico, assumed to be a small country that is unable to affect the world
price. SMexico is the domestic supply schedule and DMexico is the domestic demand schedule. Suppose that Japan can
supply televisions to Mexico at a price of $100 per set.
Figure 5.5. Mexico’s Television Market
122. Consider Figure 5.5. With free trade, Mexicans produce 4 TVs, consume 24 TVs, and import 20 TVs.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.5
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
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Page 53
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
123. Consider Figure 5.5. With free trade, Mexican producer surplus equals $2450 and Mexican consumer surplus equals
$200.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.5
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
124. Consider Figure 5.5. Suppose that the governments of Mexico and Japan negotiate a voluntary export agreement in
which Japanese TV exports to Mexico are limited to 8 units. Under the quota, the price of TVs in Mexico equals $250
while Mexicans produce 10 TVs and purchase 18 TVs.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.5
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
125. Consider Figure 5.5. Compared to free trade, the Japanese export quota leads to an increase in Mexican consumer
surplus of $3150.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
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Page 54
QUESTION TYPE:
True / False
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.5
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
126. Consider Figure 5.5. Compared to free trade, the Japanese export quota leads to an increase in Mexican producer
surplus of $1050.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.5
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
127. Consider Figure 5.5. The deadweight welfare loss to Mexico, as a result of the Japanese export quota, totals $1200.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.5
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM