ch 19 hw macro

a

A tariff can best be described as a. an excise tax on an imported good. b. an excise tax on an exported good.

b

As it relates to international trade, dumping a. is a form of price discrimination illegal under U.S. antitrust laws. b. is the practice of selling goods in a foreign market at less than cost. c. constitutes a general case for permanent tariffs. d. is defined as selling more goods than allowed by an import quota.

b

Assume that by devoting all of its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all of its resources to Y, Alpha can produce 60Y. Comparable figures for nation Beta are 60X and 40Y. We can conclude that a. the terms of trade will be 3X equals 1Y. b. Alpha should specialize in Y and Beta in X. c. Alpha should specialize in X and Beta in Y. d. there is no basis for mutually beneficial specialization and trade.

d

Differences in production efficiencies among nations in producing a particular good result from: A. different endowments of fertile soil. B. different amounts of skilled labor. C. different levels of technological knowledge. D. all of these.

c

Distinctions between land-, labor-, and capital-intensive commodities are important because a. when a country has an abundance of one type of resource, it usually does not have much of other resources. b. for every one unit of capital-intensive commodities, two of land and labor must be present. c. an abundant supply of one type of resource gives a country a comparative cost advantage in products using that resource. d. these commodities must be present for growth to occur

a

Distinctive products a. provide an export niche for a country. b. decrease production costs for a country. c. increase production costs for a country. d. are the basis for international trade and specialization.

a

Import competition can lead to a. job losses worldwide. b. quality improvements and cost reductions by American firms. c. job gains worldwide. d. fewer high-quality products.

a

Import competition can lead to a. quality improvements and cost reductions by b. American firms. job losses worldwide. c. fewer high-quality products. d. job gains worldwide.

b

In order for mutually beneficial trade to occur between two otherwise isolated nations, a. each nation must be able to produce at least one good absolutely cheaper than the other. b. each nation must have a comparative advantage in at least one product. c. each nation must face constant costs in the production of the good it exports. d. one nation's production must be labor-intensive, while the other nation's production is capital-intensive.

voluntary export restriction.

In the past, Canada has agreed to set an upper limit on the total amount of softwood lumber sold to the United States. This is an example of a(n)

b

NAFTA is a. a common currency zone in which members have adopted the euro as their common currency. b. a trade bloc made up of the United States, Canada, and Mexico whose purpose is to reduce tariffs and other trade barriers among the three countries. c. a group that oversees trade agreements reached by member nations and arbitrates trade disputes among them. d. a trading bloc of 28 European countries who have agreed to abolish tariffs and import quotas on most products and have liberalized the movement of labor and capital.

b

Protective tariffs might reduce both the imports and the exports of the nation that levies tariffs because a. exports and imports must be equal. b. other countries may follow with their own import tariffs. c. other countries may follow with their own export tariffs. d. protective tariffs can be designed to either reduce imports or exports.

b

Protective tariffs might reduce both the imports and the exports of the nation that levies tariffs because a. other countries may follow with their own import tariffs. b. other countries may follow with their own export tariffs. c. exports and imports must be equal. d. protective tariffs can be designed to either reduce imports or exports.

import quota

Suppose the United States sets a limit on the number of tons of sugar that can be imported each year. This is an example of a(n)

c

The European Union (EU) is a. a group that oversees trade agreements reached by member nations and arbitrates trade disputes among them. b. a common currency zone in which members have adopted the euro as their common currency. c. a trading bloc of 28 European countries who have agreed to abolish tariffs and import quotas on most products and have liberalized the movement of labor and capital. d. a trade bloc made up of the United States, Canada, and Mexico whose purpose is to reduce tariffs and other trade barriers among the three countries.

canada

The United States' most important trading partner as measured by the dollar value of trade is

a

The World Trade Organization (WTO) is a. a group that oversees trade agreements reached by member nations and arbitrates trade disputes among them. b. a trading bloc of 28 European countries who have agreed to abolish tariffs and import quotas on most products and have liberalized the movement of labor and capital. c. a trade bloc made up of the United States, Canada, and Mexico whose purpose is to reduce tariffs and other trade barriers among the three countries. d. a common currency zone in which members have adopted the euro as their common currency.

A

The eurozone is a. a common currency zone in which members have adopted the euro as their common currency. b. a trading bloc of 28 European countries who have agreed to abolish tariffs and import quotas on most products and have liberalized the movement of labor and capital. c. a group that oversees trade agreements reached by member nations and arbitrates trade disputes among them. d. a trade bloc made up of the United States, Canada, and Mexico whose purpose is to reduce tariffs and other trade barriers among the three countries.

164

The number of countries belonging to the World Trade Organization (WTO), as of 2021, is about

10, GDP

U.S. exports of goods and services are about _____% of U.S. __ __ __

b

We see quite a bit of international trade in the real world. And trade is driven by specialization. So why don't we see full specialization—for instance, all cars in the world being made in South Korea, or all the mobile phones in the world being made in China? Choose the best answer from among the following choices. a. Extensive import quotas b. Increasing opportunity costs c. Increasing returns d. High tariffs

c

Which is an example of a nontariff barrier (NTB)? a. an export subsidy b. an excise tax on the physical volume of imported goods c. box-by-box inspection requirements for imported fruit d. an excise tax on the dollar value of imported goods

d

Which of the following represents land-, labor-, and capital-intensive commodities, respectively? a. Wheat, automobiles, and transistor radios b. Clothing, aircraft, and automobiles c. Automobiles, corn, and transistor radios d. Corn, clothing, and aircraft

a

n recent years, the United States has a. exported more services abroad than it has imported. b. had a small goods trade surplus with Japan. c. had a large goods trade surplus with the rest of the world. d. maintained an overall trade surplus (goods and services combined) with the rest of the world.