Copyright Cengage Learning. Powered by Cognero.
Page 21
a.
Fall in revenue of $18; fall in profits of $15
b.
Fall in revenue of $18, fall in profits of $18
c.
Rise in revenue of $18, rise in profits of $15
d.
Rise in revenue of $18, rise in profits of $18
ANSWER:
d
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.2
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Dumping
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
Figure 5.3 illustrates the apple market for Sweden, assumed to be a “small” country that is unable to affect the world
price. SSweden is the domestic supply and DSweden is the domestic demand. SSweden+Quota is Sweden’s supply schedule with
an import quota.
Figure 5.3. Sweden‘s Apple Market
47. Consider Figure 5.3. In the absence of trade, Sweden’s equilibrium price and quantity of apples would be:
a.
$0.60 and 22 pounds
b.
$0.60 and 14 pounds
Copyright Cengage Learning. Powered by Cognero.
Page 22
c.
$1.00 and 18 pounds
d.
$1.40 and 14 pounds
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.3
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
48. Consider Figure 5.3. Suppose the rest of the world can supply apples to Sweden at a price of $0.60 per pound. With
free trade, Sweden produces ____ pounds of apples and imports ____ pounds of apples.
a.
b.
c.
d.
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.3
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
49. Consider Figure 5.3. At the free-trade price of $0.60 per pound, Sweden’s consumer surplus totals $____ and producer
surplus totals $____.
a.
$10.80, $2.40
b.
$14.60, $3.90
c.
$24.20, $1.80
d.
$32.40, $2.30
ANSWER:
c
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
Copyright Cengage Learning. Powered by Cognero.
Page 23
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.3
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
50. Consider Figure 5.3. If SSweden+Quota represents the supply schedule after a quota is levied, Sweden’s imports will
equal:
a.
6 apples
b.
8 apples
c.
10 apples
d.
12 apples
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.3
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
51. Consider Figure 5.3. After the quota is levied, the price of apples in Sweden will equal:
a.
$0.60 per pound
b.
$1.00 per pound
c.
$1.40 per pound
d.
$1.80 per pound
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.3
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Absolute Import Quota
Copyright Cengage Learning. Powered by Cognero.
Page 24
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
52. Consider Figure 5.3. As a result of the quota, Sweden’s consumer surplus:
a.
Increases by $6
b.
Increases by $8
c.
Decreases by $6
d.
Decreases by $8
ANSWER:
d
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.3
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
53. Consider Figure 5.3. The quota leads to a deadweight welfare loss for Sweden of an amount equaling:
a.
$0.80
b.
$1.60
c.
$2.40
d.
$3.20
ANSWER:
b
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.3
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
54. Consider Figure 5.3. The quota’s revenue effect equals:
a.
$1.60
b.
$2.40
c.
$3.20
Copyright Cengage Learning. Powered by Cognero.
Page 25
d.
$4.00
ANSWER:
c
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.3
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
55. Consider Figure 5.3. Assume that Swedish import companies behave as competitive buyers while foreign export
companies behave as a monopoly seller. Compared to free trade, Sweden’s import quota results in domestic welfare:
a.
Gains totaling $3.20
b.
Gains totaling $4.80
c.
Losses totaling $3.20
d.
Losses totaling $4.80
ANSWER:
d
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.3
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
56. Consider Figure 5.3. Assume that Swedish import companies behave as a monopoly buyer while foreign export
companies behave as competitive sellers. Compared to free trade, Sweden’s import quota results in domestic welfare:
a.
Gains totaling $1.60
b.
Gains totaling $3.20
c.
Losses totaling $1.60
d.
Losses totaling $3.20
ANSWER:
c
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
Copyright Cengage Learning. Powered by Cognero.
Page 26
PREFACE NAME:
Figure 5.3
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
57. Consider Figure 5.3. If the Swedish government auctions import licenses to the highest bidder in a competitive
market, it could realize revenues of up to:
a.
$3.20
b.
$4.00
c.
$4.80
d.
$5.60
ANSWER:
a
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.3
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
Figure 5.4 illustrates the calculator market for Venezuela, assumed to be a “small” country that is unable to affect the
world price. SVenezuela is the domestic supply schedule and DVenezuela is the domestic demand schedule.
Figure 5.4. Venezuelan Calculator Market
Copyright Cengage Learning. Powered by Cognero.
Page 27
58. Consider Figure 5.4. Suppose the rest of the world supplies calculators to Venezuela at a price of $4 each. With free
trade, Venezuelan imports total:
a.
8 calculators
b.
16 calculators
c.
20 calculators
d.
24 calculators
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.4
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
59. Consider Figure 5.4. Assume the Venezuelan government grants its manufacturers a production subsidy of $4 per
calculator. After the subsidy is granted, Venezuelan imports total:
a.
8 calculators
b.
12 calculators
Copyright Cengage Learning. Powered by Cognero.
Page 28
c.
16 calculators
d.
20 calculators
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.4
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Subsidies
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
60. Consider Figure 5.4. The cost of the production subsidy to the Venezuelan government totals:
a.
$32
b.
$40
c.
$48
d.
$54
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.4
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Subsidies
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
61. Consider Figure 5.4. The increase in Venezuelan producer surplus under the production subsidy totals:
a.
$16
b.
$20
c.
$24
d.
$32
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
Copyright Cengage Learning. Powered by Cognero.
Page 29
PREFACE NAME:
Figure 5.4
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Subsidies
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
62. Consider Figure 5.4. The production subsidy results in an overall welfare loss for Venezuela totaling:
a.
$8
b.
$12
c.
$16
d.
$20
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.4
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Subsidies
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
63. A voluntary export agreement
a.
Typically applies only to the world’s most important exporting nation(s)
b.
Typically applies only to the world’s least important exporting nation (s)
c.
Is always more restrictive on trade than a tariff or import quota
d.
All of the above
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
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:
Export Quotas
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
Copyright Cengage Learning. Powered by Cognero.
Page 30
64. When voluntary export limits are imposed on the world’s chief exporter
a.
The exports of the non-restrained suppliers may be stimulated
b.
A trade diversion effect may occur
c.
Both a and b
d.
None of the above
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: Gains from trade, speciali – DISC: Gains from trade,
specialization and trade
TOPICS:
Export Quotas
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
65. Subsidies to domestic firms may lead to
a.
An increase in prices
b.
Higher volume of exports
c.
Higher volume of imports
d.
Increase in welfare of the trading partner
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
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
66. Concerning international dumping, many economists argue that “fair value” should be based on
a.
Average variable cost
b.
Average fixed cost
c.
Marginal cost
d.
Total cost
ANSWER:
a
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
Copyright Cengage Learning. Powered by Cognero.
Page 31
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
Figure 5.6 Domestice Supply and demand for Wine – US
67. Consider Figure 5.6. In the global market for wine, the EU is willing to supply as much wine as the US demands at $8
per bottle. How much will the US produce and import in these circumstances?
a.
5 bottles, 40 bottles
b.
40 bottles, 0 bottles
c.
5 bottles, 35 bottles
d.
5 bottles, 0 bottles
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.6
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
Copyright Cengage Learning. Powered by Cognero.
Page 32
DATE MODIFIED:
6/22/2016 3:19 PM
68. Consider Figure 5.6. In the global market for wine, the EU is willing to supply as much wine as the US demands at $8
per bottle. What will happen to the price of a bottle of wine in the US if a quota of 15 bottles of wine is imposed?
a.
increase to $15
b.
increase to $10
c.
stay the same at $8
d.
decrease to $5
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.6
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
69. Consider Figure 5.6. In the global market for wine, the EU is willing to supply as much wine as the US demands at $8
per bottle. IF the US imposes a quota of 15 bottles of wine, how much wine will US consumers demand, how much wine
will US producers produce and how much wine will be imported?
a.
30 bottles, 20 bottles, 10 bottles
b.
40 bottles, 25 bottles, 15 bottles
c.
30 bottles, 30 bottles, 0 bottles
d.
30 bottles, 15 bottles, 15 bottles
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.6
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
70. Consider Figure 5.6. In the global market for wine, the EU is willing to supply as much wine as the US demands at $8
per bottle. IF the US imposes a quota of 15 bottles of wine what will happen to consumer surplus?
Copyright Cengage Learning. Powered by Cognero.
Page 33
a.
decreases by $210
b.
decreases by $245
c.
stays the same
d.
increases by $70
ANSWER:
b
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.6
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
71. Consider Figure 5.6. In the global market for wine, the EU is willing to supply as much wine as the US demands at $8
per bottle. If the US imposes a quota of 15 bottles of wine , how much revenue will the US government collect?
a.
0
b.
$35
c.
$70
d.
$105
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 5.6
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
72. In the post-World War II era, Nontariff trade barriers have decreased in importance relative to tariff barriers.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
Copyright Cengage Learning. Powered by Cognero.
Page 34
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:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
73. An import quota is a physical restriction on the quantity of goods that may be imported during a specified time period.
a.
True
b.
False
ANSWER:
True
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:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
74. Today most industrial countries protect their industries via global import quotas rather than selective import quotas.
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:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
75. A global import quota permits a specified number of goods to be imported each year, but does not specify where the
product is shipped from and who is permitted to import.
a.
True
b.
False
Copyright Cengage Learning. Powered by Cognero.
Page 35
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:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
76. Import tariffs and import quotas yield identical protection effects, consumption effects, redistribution effects, and
revenue effects.
a.
True
b.
False
ANSWER:
False
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:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
77. Import quotas can yield revenue for the domestic government if it auctions import licenses to the highest bidder in a
competitive market.
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:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
Copyright Cengage Learning. Powered by Cognero.
Page 36
78. To the extent that domestic importing companies organize as a monopoly buyer, and foreign exporting companies
behave as competitive sellers, the importing companies capture the revenue effect of a quota.
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:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
79. An import quota tends to reduce the overall welfare of the importing nation by an amount equal to the protective
effect, consumption effect, and the portion of the revenue effect that is captured by the domestic government.
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:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
80. The sugar import quotas of the U.S. government have tended to increase the market price of sugar, thus reducing the
costs to the government of maintaining sugar price supports for domestic growers.
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
Copyright Cengage Learning. Powered by Cognero.
Page 37
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
81. During periods of growing demand, a tariff more effectively restricts the volume of imports than an equivalent import
quota.
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:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
82. With a quota placed on imported sugar, increased domestic demand leads to increased sugar imports but not to higher
sugar prices.
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:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
83. With a tariff on auto imports, increased domestic demand leads to a fall in the number of autos imported and a rise in
the number of autos produced domestically.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
Copyright Cengage Learning. Powered by Cognero.
Page 38
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:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
84. An orderly marketing agreement is a market-sharing pact negotiated by trading nations, and its effect is to moderate
the intensity of international competition.
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:
Export Quotas
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
85. An elimination of nontariff barriers on apples tends to increase apple imports, reduce profits of import-competing
apple producers, and generate job losses for domestic apple 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:
Other Nontariff Trade Barriers
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
86. The distribution of an import quota’s revenue effect depends on the relative concentration of bargaining power
between foreign exporters and domestic importers.
a.
True
Copyright Cengage Learning. Powered by Cognero.
Page 39
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:
Absolute Import Quota
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
87. Voluntary export restraint agreements typically apply to all of the world’s exporting nations rather than only the most
important exporting nations.
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:
Export Quotas
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
88. For an export quota applied to manufactured goods, foreign exporters tend to capture only a negligible share of the
quota’s revenue 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:
Export Quotas
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
Copyright Cengage Learning. Powered by Cognero.
Page 40
DATE MODIFIED:
6/22/2016 3:19 PM
89. When increases in nonrestraint supply offset part of the cutback in shipments that occur under an export quota, the
overall inefficiency loss for the importing country is less than that which would have occurred in the absence of
nonrestrained exports.
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:
Export Quotas
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
90. Export quotas, placed on Japanese auto shipments to the United States in the 1980s, led to rising prices of both
Japanese autos and U.S.-produced autos purchased by the U.S. consumer.
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:
Export Quotas
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:19 PM
DATE MODIFIED:
6/22/2016 3:19 PM
91. During the 1980s, U.S. steel-using companies (Caterpillar) actively supported the U.S. government’s negotiation of
voluntary export agreements with foreign steel-exporting countries.
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