Question 1

In the figure,at what level will domestic firms produce under liberalization?

Accepted Answer

A)  Qs.
B)  Qd.
C)  A.
D)  B.
E)  P.F) A) and B)
G) C) and E)

Question 2

What is the theory of hegemonic stability?

Accepted Answer

A)  The hegemonic spread of the belief in the benefits of free trade will lead to a liberal world trading system.
B)  The spread of free trade throughout the world will lead to a stable single trading system.
C)  The longer countries keep their free-trade policies,the more likely they are to remain pro-free trade.
D)  Having one single hegemonic source of information can improve the chances of stability in international trade.
E)  One large state that is willing and powerful enough can solve the collective action problems of international trade.F) B) and D)
G) B) and E)

Question 3

Which of the following is most likely to benefit from protectionism?

Accepted Answer

A)  Consumers of all goods,because they are protected from inferior products.
B)  Consumers of imported products.
C)  Domestic producers of goods that are also imported from foreign countries.
D)  Domestic producers of goods that are exported to other countries.
E)  Foreign producers of goods that are exported to other countries.F) A) and B)
G) A) and C)

Question 4

What factors make it more likely that countries will have trade agreements? How do strategic interactions make it more or less likely that a country will erect a trade barrier?

Accepted Answer

There are several factors that make it m...

Question 5

Which of the following is explained well by the specific-factor approach (Ricardo-Viner model) ?

Accepted Answer

A)  Steel workers and steel factory owners both lobby for tariffs on imported steel.
B)  Steel workers and agricultural workers join together to oppose tariffs.
C)  Owners of factories in a country with abundant fertile land promote free trade.
D)  Car manufacturers and owners of megafarms collude in lobbying for tariffs on car and wheat imports.
E)  Workers in an automobile factory promote free trade while the factory owners lobby for tariffs on imported cars.F) A) and E)
G) A) and B)

Question 6

Why do countries restrict trade?

Accepted Answer

A)  Some influential interest groups may benefit from tariffs.
B)  Trade restrictions do not come with any costs for the country imposing them.
C)  Trade restrictions usually are the best way to improve a country's overall economy.
D)  Free trade hurts industries that make use of the most abundant resource in a country.
E)  Trade restrictions are more important to consumers than to producers of products.F) C) and E)
G) C) and D)

Question 7

Which of the following would be a movement toward the Pareto frontier with regard to the benefits of trade?

Accepted Answer

A)  Steel workers losing their jobs because of steel imports get free training,paid for by the government,so they can get jobs in another industry.
B)  Agricultural workers facing wage decreases because of imported food successfully lobby the government to institute tariffs.
C)  Workers in a clothing factory in Mexico being laid off go to the United States to find work.
D)  South Korean semiconductor manufacturers sell their products at a lower-than-market price in Japan.
E)  The wages of Bangladeshi shoe makers rise when the United States imposes tariffs on shoe imports.F) A) and C)
G) A) and B)

Question 8

The table is an example of:

Accepted Answer

A)  negative externality.
B)  comparative advantage.
C)  trade bargaining.
D)  the Prisoner's Dilemma.
E)  Stag Hunt.F) B) and C)
G) C) and E)

Question 9

Which of the following statements best describes the opinion of most economists about trade?

Accepted Answer

A)  Trade barriers are bad for economic growth and well-being.
B)  Trade barriers have no discernible effect on domestic production.
C)  Trade barriers have no long-term effect on exports.
D)  Trade barriers are "a rising tide that lifts all boats."
E)  Trade barriers disproportionately hurt low-skilled labor.F) C) and E)
G) B) and E)

Question 10

Why do economists believe that free trade would be beneficial for the world economy? Why do nations still erect barriers in the face of those arguments?

Accepted Answer

The answer of Why do economists believe that free trade...

Question 11

Which of the following is most likely to help countries overcome trade problems with each other?

Accepted Answer

A)  When a large number of countries participate in trade negotiations so they can gain broader consensus.
B)  When countries have limited interactions over time and therefore little chance for disputes.
C)  When countries are able to restrict the information that other countries have about their products.
D)  When the countries have concluded a limited war fought with each other to resolve a dispute over trade routes.
E)  When countries can negotiate concessions in different industries to achieve an agreement.F) A) and E)
G) A) and D) E

Question 12

Antiglobalization critics criticize the WTO because they think it:

Accepted Answer

A)  favors domestic workers over other actors.
B)  disregards environmental and safety issues.
C)  is overly concerned about workers' health and safety.
D)  is not doing enough to reduce government subsidies for domestic producers in developing countries.
E)  has too little authority in regulating international trade.F) A) and B)
G) All of the above

Question 13

Which of the following statements about trade policy is true?

Accepted Answer

A)  No country in the world currently maintains trade barriers.
B)  Few countries in the world maintain trade barriers.
C)  A bare majority of countries in the world maintain some trade barriers.
D)  A large majority of countries in the world maintain some trade barriers.
E)  Every country in the world maintains some trade barriers.F) B) and D)
G) D) and E)

Question 14

Which of the following is NOT a trade barrier?

Accepted Answer

A)  Subsidies.
B)  Tariffs.
C)  Quantitative restrictions.
D)  Import licenses.
E)  Nontariff barriers.F) A) and E)
G) A) and D) A

Question 15

Which statement best describes the position of the United States toward free trade?

Accepted Answer

A)  The United States has always promoted free trade.
B)  The United States has always been a highly protectionist country.
C)  The United States was initially in favor of free trade but then became more protectionist,and is currently highly protectionist.
D)  The United States was initially in favor of free trade,became protectionist but currently promotes free trade.
E)  The United States was initially strongly protectionist but has since favored free trade.F) A) and B)
G) A) and C) E

Question 16

The creation of the European Common Market and the subsequent growth of the customs union in Europe is best an example of the importance of ________ in international trade.

Accepted Answer

A)  interests
B)  institutions
C)  ideas
D)  interactions
E)  identitiesF) A) and C)
G) A) and E)

Question 17

How do international institutions affect whether the world trading system is more or less open?

Accepted Answer

The answer of How do international institutions affect whether the...

Question 18

Which is true of Portugal in the table?

Accepted Answer

A)  Portugal has an absolute advantage over England in both cloth and wine.
B)  England's opportunity cost for producing wine is lower than Portugal's.
C)  Portugal can produce more wine than England.
D)  Neither country has a comparative advantage in the production of cloth.
E)  Neither country has a comparative advantage in the production of wine.F) All of the above
G) B) and D)

Question 19

Which of the following is an example of absolute advantage?

Accepted Answer

A)  Japan makes cars more efficiently than the United States.
B)  Germany makes cars more efficiently than the United States,and the United States makes software more efficiently than Germany.
C)  The United States is likely to win in a trade war against either Germany or Japan.
D)  Japan makes cars more efficiently than any other country.
E)  All countries are equally efficient at making software.F) A) and E)
G) A) and C)

Question 20

Why do powerful countries like the United States abide by WTO rules,even when the WTO rules against them?

Accepted Answer

Powerful countries like the United State...

Exam 8: International Trade

In the figure,at what level will domestic firms produce under liberalization?

Correct AnswerverifiedShow Answer

What is the theory of hegemonic stability?

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Which of the following is most likely to benefit from protectionism?

Correct AnswerverifiedShow Answer

What factors make it more likely that countries will have trade agreements? How do strategic interactions make it more or less likely that a country will erect a trade barrier?

Correct AnswerAnswered by ExamLex AIThere are several factors that make it m...View AnswerShow Answer

Which of the following is explained well by the specific-factor approach (Ricardo-Viner model) ?

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Why do countries restrict trade?

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Which of the following would be a movement toward the Pareto frontier with regard to the benefits of trade?

Correct AnswerverifiedShow Answer

The table is an example of:

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Which of the following statements best describes the opinion of most economists about trade?

Correct AnswerverifiedShow Answer

Why do economists believe that free trade would be beneficial for the world economy? Why do nations still erect barriers in the face of those arguments?

Correct AnswerverifiedShow Answer

Which of the following is most likely to help countries overcome trade problems with each other?

Correct AnswerverifiedE

Antiglobalization critics criticize the WTO because they think it:

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Which of the following statements about trade policy is true?

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Which of the following is NOT a trade barrier?

Correct AnswerverifiedA

Which statement best describes the position of the United States toward free trade?

Correct AnswerverifiedE

The creation of the European Common Market and the subsequent growth of the customs union in Europe is best an example of the importance of ________ in international trade.

Correct AnswerverifiedShow Answer

How do international institutions affect whether the world trading system is more or less open?

Correct AnswerverifiedShow Answer

Which is true of Portugal in the table?

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Which of the following is an example of absolute advantage?

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Why do powerful countries like the United States abide by WTO rules,even when the WTO rules against them?

Correct AnswerAnswered by ExamLex AIPowerful countries like the United State...View AnswerShow Answer

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There are several factors that make it m...
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Answered by ExamLex AI
Powerful countries like the United State...
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