Econ Final Exam (last one)
There are nontariff barriers in the form of _______________ regulations, in which certain textiles are made in the United States, shipped to other countries, combined in making apparel with textiles made in those other countries—and then re-exported back to the United States at a lower tariff rate.
"rules of origin"
The membership of the WTO includes about __________ nations.
150
Despite interlocking import quotas, tariffs, and nontariff barriers, the share of apparel sold in the United States that is imported rose from about _________ in 1999 to about ________ today.
50%; 75%
As measured in 2008, about _________ of U.S. trade and ________ of European trade is intra-industry trade.
60%; 60%
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 gain from the higher prices. B. hurt both domestic wine drinkers and domestic wineries, but this 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
In 2009, total federal and state government spending was about $5.1 trillion and the cost of choosing politicians to determine how this money would be spent amounted to roughly _____________ of government spending. A. 1/10 of 1% B. 1/10 of 2% C. 1/25 of 1% D. 1/25 0f 2%
A
In presidential elections over the last few decades, about ____________ of voting-age citizens actually turned out to cast their votes. A. 55-65% B. 45-50% C. 30-45% D. 70-75%
A
In some instances where voters have more than two choices in a democratic election, the principle that the __________________ will decide the outcome may no longer make logical sense. A. majority of voters B. under-educated voters C. economically challenged D. eligible voters
A
In the U.S. political arena, ______________________ may tend to emphasize the virtues of markets and the limitations of government, while _____________ may tend to emphasize the shortcomings of markets and the need for government programs. A. conservatives; liberals B. politicians; economists C. economists; politicians D. liberals; conservatives
A
Political institutions play a role in allocating the ____________________, and economists have played an active role along with other social scientists in analyzing ________________________________________. A. scarce resources of society; how such political institutions work B. single political district spending; the impossibility of the majority deciding what it prefers C. resources to pork barrel projects; the impossibility of deciding on spending limits D. funding to 51 tuition-free colleges and universities; disadvantages of price controls
A
Tariffs are taxes imposed on _________________. A. imported products B. exported products C. hazardous goods D. surplus goods
A
The government is imposing an industrial pollution tax in an attempt to reduce carbon emissions. The cost of the tax to five major companies in the oil refining industry will be $50 million annually. In terms of reduced emissions, the annual benefits of the tax are valued at $10 per person. There are 125 million people directly affected by emissions from oil refineries owned by these companies. The total annual cost of this tax is ___________ while the total annual benefit to society is ___________. A. $250 million; $1.25 trillion B. $500 million; 1.5 trillion C. $250 million; $1.5 trillion D. $500 million; $1.25 trillion
A
The political systems in most Latin American nations differ from the political system in the United States because most Latin American nations A. have laws that require voting. B. have laws requiring voters to cast informed votes. C. are not recognized as democracies ruled by electoral majorities. D. are ruled by dictatorships.
A
The theory of __________________ holds that people won't bother incurring the costs of becoming informed and voting, because they know that their vote ___________________________________________. A. rational ignorance; won't be decisive in the election B. imperfect competition; has little impact on election outcomes C. inequality of incomes; won't be decisive in the election D. democracy by majority rule; won't impact election outcomes
A
Why are politicians more likely to focus their political actions on individuals with higher incomes and higher levels of education? A. research shows this group has greater informed voter participation B. research shows this group has a higher percentage of conservatives C. research shows this group has a higher percentage of liberals D. research shows members of this group have employment concerns
A
Which of the following is true?
A nation cannot have a comparative advantage in the production of every good.
Say that Alland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Georgeland can produce 24 units of food per year or 12 units of clothing. Which of the following is true?
Alland has an absolute advantage in producing food but will not trade with Georgeland.
A problem may arise when politicians are elected by the votes of 60% or less of the population, because these politicians may not enact A. legislation that is focused on numerically small special interest groups. B. economic policy in the best interests of 100% of the population. C. public policies that fail to benefit social surplus. D. pork-barrel legislation using logrolling.
B
Legislators who focus on local spending projects for their own district typically show a lack of sufficient concern for A. meeting the demands of special interest groups. B. spending in the interest of the nation as a whole. C. law and non-market based economics. D. the prevalence of voting cycles.
B
Pork-barrel spending can be thought of as another case where democracy is challenged by _______________ and __________________. A. specials interest groups; disconnected voters B. concentrated benefits; widely dispersed costs C. conventional wisdom; lawyers and judges D. higher income earners; low-educated individuals
B
Research on voting behavior in the U.S. has shown that, on average, people who are more __________________ tend to _______________________. A. involved with a political party; vote more frequently B. connected to society; vote more frequently C. conservative; vote less frequently D. liberal; vote less frequently
B
Since the 1980s, national elections in Germany, Spain and France have all recorded ______________ than was recorded for presidential elections in the United States. A. lower voter participation B. higher voter participation C. a 50% higher number of votes cast D. a 50% lower number of votes cast
B
The problem of special interests in politics can be related to an economic policy problem called ________________________. A. pork-barrel spending B. regulatory capture C. logrolling D. imperfect competition
B
When ___________________ occurs, the result will be determined by the order in which choices are presented and voted on, not by_____________, because every choice is both preferred to some alternative and also not preferred to another alternative. A. vote splitting; special interests B. a voting cycle; majority rule C. vote splitting; a runoff round D. a voting cycle; a reduction in candidates
B
Which of the following characteristics differentiates the private economy from government? A. public policy with appropriate incentives B. self-correcting mechanism C. spending programs and unwanted results D. moderate future behaviour
B
Which of the following is a reason the Supreme Court was asked to rule on various provisions and interpretations of the Bipartisan Campaign Reform Act of 2002? A. legalized political advertising for the year leading up to an election B. conflicts with the free speech provisions of the U.S. Constitution C. allowed individuals to make unlimited political donations D. allowed foreign corporations to make unlimited political donations
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 numerical limitations on the quantity of products that can be imported. A. Tariffs B. Import quotas C. Taxes D. Nontariff barriers
B
________________ occurs when a group of legislators all agree to vote for a package of otherwise unrelated laws that they individually favor. A. Pork-barrel spending B. Logrolling C. Competitive spending D. Politically conservative spending
B
_______________________ are numerically small, but well organized groups that are able to exert a disproportionate effect on political outcomes. A. Bipartisan reform organizations B. Special interest groups C. Social scientists organizations D. Bipartisan campaign reformers
B
At the time the United States was formed, mandatory voting was required in each of the following states with one exception. Which one is it? A. Virginia B. Maryland C. Alabama D. Delaware C
C
Australian law may require people to vote, but mandatory voting laws are unlikely to mean that each vote cast in an election __________________________________. A. will matter less than it does in a free society B. is worth the loss of freedom not to vote C. will be an informed or a thoughtful vote D. was cast by voters who don't care who wins
C
Economists readily admit that in settings that involve a monopoly or negative externalities, a potential role exists for _______________________. A. scare resources B. economically wise programs C. government intervention D. economically wise projects
C
In ____________________, when there is no president race, the voter turnout is typically ___________________________. A. Senate elections; more than half of eligible voters B. Congressional elections; more than half of eligible voters C. Congressional elections; less than half of the eligible voters D. Senate elections; less than half of eligible voters
C
In the U.S., why is figuring out a way of strengthening people's feeling of connectedness to society still an issue of importance? A. it will make it easier for people to register to vote B. keeping the polls open longer will create more jobs C. other proposals offered have failed to substantially increase voter turnout D. those who vote tend to be more supportive of quality public education
C
In the United States, which of the following would be most likely to participate in an election by informing themselves and casting their vote? A. single people B. newcomers C. the employed D. the socially isolated
C
The government wants to enact tax legislation aimed at reducing increasing discharge levels of toxins into municipal waste water systems. The annual cost of the tax to the 100 worst industrial polluters will be $5 million each. The annual benefits of the tax, in terms of reduced toxin levels in water systems, are valued at $25 per person. There are 300 million people directly affected by the 100 worst industrial polluters. The total cost of this tax is ___________ while the total benefit to society is ___________. A. $125 million; $1.5 trillion B. $125 million; $7.5 trillion C. $500 million; $7.5 trillion D. $500 million; $1.5 trillion
C
U.S. presidential elections over the last few decades have typically involved _____________ of voting-age citizens actually participating by ___________________ to vote. A. 75-80%; joining a political party B. 65-75%; registering C. 55-65%; exercising their right D. 40-55%; getting out
C
U.S. voting statistics show that elderly citizens donate both money and time to political campaigns. In the 2012 presidential election, ___________ of those over age 65 voted, while just ___________ of the remainder of the voting age population cast a ballot. A. 75%; 68% B. 44%; 20% C. 70%; 49% D. 50%; 30%
C
Which of the following is an oversimplified term that is sometimes used to describe the meaning of democracy? A. voting cycles B. majority opinion C. majority rule D. majority vote
C
_________________ are more likely to arise from a group that is easily identifiable, rather than from a group where some of those who suffered may not even recognize that _____________________________. A. Connected peoples; specific tax breaks exist for them B. Socially isolated people; government intervention is needed C. Special interests; they are bearing the costs D. Beneficiaries; rent controls are in effect
C
___________________ is a particular type of spending that mainly benefits a single political district. A. Logrolling B. Special interest spending C. Pork-barrel spending D. An appropriate spending program
C
Suppose that Canada can produce 100,000 hockey sticks or 10,000 gallons of maple syrup in a typical workweek, while Germany can produce 90,000 hockey sticks or 10,000 gallons of maple syrup in a typical workweek. From these numbers, we can conclude:
Canada has a comparative advantage in the production of hockey sticks.
A practical approach to microeconomic policy will need to take a realistic view of the specific strengths and weaknesses of markets and ___________________________________. A. rational ignorance that encourages a preference for uninformed voting B. the difficulties that arise when electors have three or more ballet choices. C. lobbying efforts that encourage pork-barrel spending D. the specific strengths and weaknesses of government
D
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 imported.
D
In Canada, voters typically choose between three or more candidates in an election, which can lead to situations where A. actors in the political system are presumed to follow their own self-interest. B. there will be a disproportionately large impact on conservative politicians. C. there will be a disproportionately large impact on liberal politicians. D. it becomes impossible for the majority to decide who it prefers.
D
In a 1948 novel titled "Walden II", one of the characters states: "The chance that one man's vote will decide the issue in a national election...is less than the chance that he will be killed on his way to the polls." This statement addresses A. why laws against pork-barrelling and logrolling cannot be legislated. B. why the United States spends too much money on elections. C. why the margin of victory in elections is measured in hundreds, thousands, and millions of votes. D. why a utility-maximizing person may rationally decide not to vote or become informed about elections.
D
The $5.8 billion spent on political campaigns in the United States in 2012 represents roughly _____________ of the nation's overall economy. A. 1/10 of 1% B. 1/15 of 1% C. 1/20 of 1% D. 1/25 of 1%
D
The absence of which of the following best explains why government agencies are slower to correct mistakes than private firms. A. imperfect information B. discrimination in wealth distribution C. monopoly over the economy D. competition or a threat of new entry
D
The government has decided to impose a pollution tax on coal burning power plants in an attempt to reduce harmful emissions. The new tax will cost the 20 largest industrial carbon emitters $6 million annually. In terms of reduced emissions, the annual tax benefits are valued at $20 per person. 100 million people are directly affected by emissions from these plants. The total annual cost of this tax is ___________, while the total annual benefit to society is ____________. A. $60 million, $2 trillion B. $60 million, $1 trillion C. $120 million, $1 trillion D. $120 million, $2 trillion
D
What American economist wrote "An Economic Theory of Democracy" in which it is stated: "It seems probable that for a great many citizens in a democracy, rational behavior excludes any investment whatever in political information per se." A. B.F. Skinner B. Adam Smith C. F. Scott Fitzgerald D. Anthony Downs
D
When the U.S. Congress begins to draft laws and regulations that attempt to reduce the harmful effects of environmental pollution, industry lobbyists will A. study every word and comma. B. suggest alternate wording. C. often contribute to campaigns of legislators on key committees. D. do all of the above in order to influence legislation in their favour.
D
Which of the following is not one of the proposals that have been offered to encourage greater voter turnout? A. making it easier to register to vote B. keeping the polls open for more hours C. moving election day to a weekend D. tax incentives for active voters
D
Who of the following is credited with having once written: "No one pretends that democracy is perfect or all-wise"? A. Abraham Lincoln B. Adam Smith C. F. Scott Fitzgerald D. Sir Winston Churchill
D
The acronym GATT stands for:
General Agreement on Tariffs and Trade.
Say that Alland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Georgeland can produce 16 units of food per year or 8 units of clothing. Which of the following is true?
Georgeland has a comparative advantage, but not an absolute advantage, in producing clothing.
Say that Alland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Georgeland can produce 24 units of food per year or 12 units of clothing. Which of the following is true?
Georgeland has an absolute disadvantage, but not a comparative disadvantage, in producing clothing.
_____________ are numerical limitations on the quantity of products that can be imported.
Import quotas
It is sometimes argued that nation should not depend too heavily on other countries for supplies of certain key products. This argument is commonly known as the _______________.
National Interest Argument
_________________ are ways that a nation can draw up regulations, inspections, and paperwork to make it more costly or difficult to import products.
Nontariff barriers
What are the arguments used to counter free (or freer trade).
Prices for imported goods are more expensive
The race to the bottom scenario of global environmental degradation is explained roughly like this:
Profit-seeking multinational companies shift their production from countries with strong environmental standards to countries with weak standards, thus reducing their costs and increasing their profits.
Which of the following would be expected if the tariff on foreign-produced automobiles were increased?
The supply of foreign automobiles to the domestic market would be reduced, causing auto prices to rise.
Why would foreign firms export a product at less than its cost of production—which presumably means making a loss?
This may be part of a long-term strategy in which foreign firms would sell at below the cost of production in the short-term for a time, and when they have driven out the domestic U.S. competition, they would then raise prices.
The international group responsible for lowering trade barriers is the:
World Trade Organization (WTO)
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
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
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
Which of the following is the best example of a tariff?
a $1000-per-car fee imposed on all small cars imported
Politicians often argue for tariff increases in order to reduce the nation's dependence on imports. If tariffs are increased, the long-run effect is most likely to be:
a decrease in both American imports and exports.
Which of the following is the best example of a quota?
a limit imposed on the number of men's suits that can be imported from a foreign country
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 non-tariff barrier
A tariff differs from a quota in that a tariff is:
a tax imposed on imports, whereas a quota is an absolute limit to the number of units of a good that can be imported.
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
As international trade increases, it contributes to a shift in jobs away from industries where that economy does not have a(n) __________ advantage and toward industries where it has a(n) ___________ advantage.
comparative; comparative
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:
declined quite substantially both in the U.S. economy and in the global economy.
The infant industry argument for protectionism suggests that an industry must be protected in the early stages of its development so that:
domestic producers can attain the economies of scale to allow them to compete in world markets.
Which of the following is not a short-run impact of imposing quotas on the American industries they seek to protect?
government tax revenues increase
An import quota or tariff on French wine that raises the prices for wine will probably:
hurt domestic wine drinkers but help domestic wineries, which will gain from the higher prices.
Tariffs are taxes imposed on _________________.
imported products
Raising an existing tariff on grapes from Argentina will:
increase American consumption of domestically produced grapes.
Introducing a tariff on vitamin Z would:
increase American consumption of domestically produced vitamin Z.
A new American import quota on imported steel would be likely to:
increase American production of steel.
After the USA introduces a tariff in the market for gigastraps, the price of gigastraps in the USA will:
increase.
An import quota does which of the following?
increases the price of the domestic goods to consumers
"Tariffs and other trade restrictions increase the domestic scarcity of products from abroad. Such policies benefit domestic producers of the restricted products at the expense of domestic consumers." This statement:
is essentially correct
Intra-industry trade between similar trading partners allows the gains from ______________________ that arise when firms and workers specialize in the production of a certain product.
learning and innovation
Economists would say tariffs:
limit voluntary exchanges.
The slope of the production possibility frontier is determined by the ________________ of expanding production of one good, measured by how much of the other good would be lost.
opportunity cost
Low-wage U.S. workers suffer from protectionism in all the industries that they don't work in, because:
protectionism forces them to pay higher prices for basic necessities like clothing and food.