Question :
4) In the 1980s, the U.S. government forced Japanese automakers : 1241660
4) In the 1980s, the U.S. government forced Japanese automakers to limit their exports to the United States. The union representing the autoworkers (UAW), argued that otherwise the U.S. auto industry would have contracted. The UAW’s argument is the ________ argument for protection.
A) save domestic jobs
B) national security
C) anti-dumping
D) infant-industry
E) bringing diversity and stability
5) In 2002, President Bush imposed a tariff on imported steel. He did so in response to rent seeking by
A) domestic steel consumers.
B) domestic steel producers.
C) foreign steel consumers.
D) foreign steel producers.
E) foreign politicians.
6) If the opportunity cost of producing a T-shirt is ________ in China than in the United States, China has ________ advantage in producing T-shirts.
A) lower; a comparative
B) lower; an absolute
C) higher; a comparative
D) higher; an absolute
E) higher; no
7) Because the United States has ________ advantage compared to China in producing airplanes, China can buy airplanes from the United States at a ________ opportunity cost than that at which China can produce them.
A) comparative; lower
B) comparative; higher
C) absolute; lower
D) absolute; higher
E) None of the above because China will produce airplanes and sell them to the United States.
8) Which of the following is true?
i.Comparative advantage drives international trade.
ii.Compared to a no-trade situation, in a market with imports, producer surplus is larger.
iii.Tariffs lower the domestic price of imported goods.
A) only i
B) only ii
C) only iii
D) i and ii
E) i and iii
9) Which of the following is true?
i.When the world price of a good is lower than the price that balances domestic supply and demand, a country gains from exporting the good.
ii.Compared to a no-trade situation, in a market with imports, consumer surplus is larger.
iii.Quotas raise the domestic price of imported goods.
A) only i
B) only ii
C) only iii
D) i and ii
E) ii and iii
10) Which of the following is true?
i.Compared to a no-trade situation, in a market with exports, consumer surplus is larger.
ii.Tariffs decrease consumer surplus.
iii.Trade is restricted because protection brings small losses to a large number of people and large gains to a small number of people.
A) only i
B) only ii
C) only iii
D) i and iii
E) ii and iii
11) We find that the world price of sugar is 20 cents a pound, the U.S. does not trade internationally, and the U.S. equilibrium price of sugar is 30 cents a pound. If the U.S. begins to trade internationally, the price of sugar in the U.S. ________ to the world price and U.S. consumers buy ________ sugar.
A) falls; more
B) falls; less
C) rises; more
D) rises; less
E) falls; no
12) The world price of steel is $100 a ton. Before international trade, the price of steel in India is $60 a ton. If India begins trading internationally, the price of steel in India ________ and steel mills in India ________ the quantity they produce.
A) rises; increase
B) falls; increase
C) does not change; increase
D) rises; decrease
E) falls; decease
13) Imports ________ society’s total surplus because of the ________ in price and ________ in consumption.
A) increase; rise; increase
B) increase; rise; decrease
C) decrease; fall; increase
D) decrease; fall; decrease
E) increase; fall; increase
14) Exports ________ society’s total surplus because of the ________ in price and ________ in production.
A) increase; rise; increase
B) increase; rise; decrease
C) decrease; fall; increase
D) decrease; fall; decrease
E) increase; fall; increase
