Question : 4.4   The Political Economy of Trade: A Preliminary View 1) Those : 1303493

 

 

4.4   The Political Economy of Trade: A Preliminary View

 

1) Those who will lose from free trade are ________ factors in sectors that produce goods that are ________.

A) immobile; also imported

B) mobile; also imported

C) immobile; exported

D) mobile; exported

E) mobile; untraded

 

 

2) Those who will unambiguously gain from free trade are ________ factors in sectors that produce goods that are ________.

A) immobile; exported

B) immobile; also imported

C) mobile; also imported

D) mobile; exported

E) mobile; untraded

 

 

3) The effect of trade on specialized employees of import-competing industries will be ________ jobs and ________ pay because they are relatively ________.

A) fewer; lower; immobile

B) fewer; lower; mobile

C) more; lower; immobile

D) more; higher; mobile

E) more; higher; immobile

 

4) The effect of trade on specialized employees of exporting industries will be ________ jobs and ________ pay because they are relatively ________.

A) more; higher; immobile

B) fewer; lower; immobile

C) fewer; lower; mobile

D) more; lower; immobile

E) more; higher; mobile

 

 

5) Economists consider the effects of free trade on income distribution to be ________ important than the effects on overall welfare because ________.

A) less; those who are harmed can be compensated by those who gain

B) more; those who are harmed are not compensated by those who gain

C) less; the effects on income distribution are minor and inconsequential

D) more; the effects on income distribution are major and consequential

E) less; the wealthy benefit and only the poor lose

 

 

6) Economists consider the effects of free trade on income distribution to be ________ important than the effects on overall welfare because ________.

A) less; many factors besides trade affect income distribution

B) more; those who are harmed are not compensated by those who gain

C) less; the effects on income distribution are minor and inconsequential

D) more; the effects on income distribution are major and consequential

E) less; the wealthy benefit and only the poor lose

 

 

7) There is a bias in the political process against free trade because

A) those who lose from free trade are better organized than those who gain.

B) the gains from free trade cannot be measured.

C) those who gain from free trade can’t compensate those who lose.

D) foreign governments make large donations to U.S. political campaigns.

E) there is a high correlation between the volume of imports and the unemployment rate.

 

8) U.S. imports of sugar are limited by an import quota that, according to a study updated in 2013, imposed annual costs on American consumers of

A) $2,000,000.

B) $1,500,000.

C) $1,000,000,000.

D) $200,000.

E) $370,000.

 

 

9) U.S. imports of sugar are limited by an import quota that, according to a study updated in 2013, imposed a total cost on American consumers close to $________, or an average cost of ________ per year for every man, woman, and child in the country.

A) $3 billion; $10

B) $105 million; $3

C) $2 billion; $110

D) $3 billion; $2,000

E) $370 million; $2,000

 

 

10) U.S. imports of sugar are limited by an import quota that, according to a study updated in 2013, imposed a total cost on American consumers close to $________, or an average cost of ________ per year for every job saved in the U.S sugar industry.

A) $3 billion; $10

B) $105 million; $3

C) $2 billion; $110

D) $3 billion; $1,000,000

E) $370 million; $20