1) figure 4.4 market for gasoline in a small nation
figure 4.4 represents the market for gasoline in a small nation.the free trade world price
of gasoline is $3.50.suppose this small nation imposes a tariff on gasoline of $.50 per
gallon.the change in consumer surplus would be
a.area a + b
b.area a
c.area a + b + c + d + e
d.area a + b + f + g + h
2) concerning the u.s. balance of payments, which account is defined in essentially the
same way as the net export of goods and services, which comprises part of the country’s
gross domestic product?
a.merchandise trade account
b.goods and services account
c.current account
d.capital account
3) figure 15.2market for the british pound
refer to figure 15.2. demand and supply of british pounds is initially d0 and s0.with a
system of floating exchange rates, the equilibrium exchange rate is:
a.$0.40 per pound
b.$0.60 per pound
c.$0.80 per pound
d.$1.00 per pound
4) long-run exchange rate movements are governed by all of the following except:
a.national productivity levels
b.consumer tastes and preferences
c.rates of inflation
d.interest rate levels
5) which nation is not a member of the north american free trade association?
a.canada
b.greenland
c.mexico
d.united states
6) a system of floating exchange rates and high capital mobility strengthens which
policy in combating a recession:
a.expansionary fiscal policy
b.expansionary monetary policy
c.contractionary fiscal policy
d.contractionary monetary policy
7) if the world price of steel is $600 per ton, a specific tariff of $120 per ton is
equivalent to an ad valorem tariff of 25 percent.
a.true
b.false
8) on the balance-of-payments statement, a capital inflow can be likened to the import
of goods and services.
a.true
b.false
9) multilateral trade negotiations have led to
a.continued trade liberalization
b.financial liberalization
c.increased investment
d.all of the above
10) figure 2.2 illustrates trade data for canada. the figure assumes that canada attains
international trade equilibrium at point c.
figure 2.2. canadian trade possibilities
consider figure 2.2. with trade, canada consumes:
a.12 televisions and 8 refrigerators
b.12 televisions and 16 refrigerators
c.8 televisions and 16 refrigerators
d.24 refrigerators
11) the figure below depicts the steel market for portugal, a small nation that is unable
to affect the world price. assume that germany and france can supply steel to portugal at
a price of $200 and $300 respectively.
figure 8.2. portugal’s steel market
consider figure 8.2. if portugal levies a 100 percent nondiscriminatory tariff on its steel
imports, it will purchase 5 tons of steel from france at a price of $500 per ton.
a.true
b.false
12) the united states
a.has been a heavy user of antidumping laws to protect domestic producers
b.has rarely used antidumping laws to protect domestic producers
c.has targeted antidumping action against china, japan, canada, italy, and germany
d.both a and c