34

A rule that every imported product must be opened by hand and inspected with a magnifying glass, by one of just three government inspectors available at any given time might be referred to as __________________. a. a nontariff barrier b.quota c.government bureaucracy d.import quota

A

An import quota or tariff on French wine that raises the prices for wine will probably: a.hurt domestic wine drinkers but help domestic wineries, which will gains from higher prices b.hurt both domestic wine drinkers and producers, but the will be more than offset by a reduction in driving fatalities c.hurt both domestic wine drinkers and domestic wine producers because of a reduction in competition d.hurt domestic wineries, which will lose business as a result of the higher prices

a

It is sometimes argued that a nation should not depend too heavily on other countries for supplies of certain key products. This argument is commonly knows as the_______ a.National interest argument b.import limitation argument c.anti dumping argument d.buy-American argument

a

A new American import quota on important steel would be likely to: a.increase the production of steel-using American firms b.increase American production of steel c.generate tax revenue to the government d.reduce the cost of production of steel-using American firms

b

The infant industry argument for protectionism suggests that an industry must be protected in the early states of its development so that: a.firms will be protected from subsidized foreign competition b.domestic producers can attain the economies of scale to allow them to compete in world markets c.there will be adequate supplies of crucial resources in case they re needed for national defense d.it will not be subjected to takeover from a foreign competitor

b

Which of the following would be expected if the tariff on foreign-produced automobiles were increased? a.the domestic price of automobiles would fall b.the supply of foreign automobiles to the domestic market would be reduced, causing auto prices to rise c.the number of unemployed workers in the domestic automobile industry would rise d.the demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations

b

________ are ways that a nation can draw up regulations, inspections, and paperwork to make it more costly or difficult to import products a.tariffs b.nontariff barriers c.quotas d.import ceilings

b

_________ are numerical limitations on the quantity of products that can be imported a.tariffs b.import quotas c.taxes d.nontariff barriers

b

__________ means selling goods below their cost of production a.protectionism b.dumping c.import quotas d.non-tarrif barriers

b

International trade is fundamentally a ________ a.win-lose situtation b.lose-lose situation c.win-win situation d.war which is won by the strongest

c

Tariffs result in a decrease in consumer surplus because: a.the price and the quantity consumer of the protected good increases b.the price and the quantity consumed of the protected good decreases c.the price of the protected good increases and quantity consumed decreases d.the price of the protected good decreases and the quantity consumed increases.

c

A tariff differs from a quota in that a tariff is: a.levied on imports, whereas a quota is imposed on exports b.levied on exports, whereas a quota is imposed on imports c.a tax levied on exports, whereas a quota is a limit on the number of units of a good that can be exported. d.a tax imposed on imports, whereas a quota is an absolute limit to the number of units of a good that can be exported

d

During the second half of the twentieth century, trade barriers have in general: a.declined quite substantially both in the US and in the global economy b.declined quite substantially in the US economy but not the global economy c.increased quite substantially in the US economy and in global economy d.increased quite substantially in the US economy but not in the global economy

a