Question : 31) An agreement negotiated by two countries that places a : 1244923

31) An agreement negotiated by two countries that places a numerical limit on the quantity of a good that can be imported by one country from another country is called

A) a non-tariff trade barrier.

B) an export quota.

C) an import quota.

D) a voluntary export restraint.

32) The main purpose of most tariffs and quotas is to

A) raise revenue for the government.

B) reduce the prices consumers pay for goods and services.

C) reduce the foreign competition that domestic firms face.

D) improve the quality of goods and services imported into the country.

33)  Which of the following is the best example of a quota?

A) a limit imposed on the number of sport utility vehicles that the United States can import from Japan

B) a subsidy granted by the U.S. government to domestic garment manufacturers so they can compete more effectively with foreign garment manufacturers

C) a tax placed on all sport utility vehicles sold in the domestic market

D) a $5,000 per-car fee imposed on all sport utility vehicles imported into the United States

34)  Which of the following is the best example of a voluntary export restraint?

A) a limit imposed by the U.S. government on the number of cell phones that the United States can import from Korea

B) a subsidy granted by the U.S. government to domestic cell phone manufacturers so they can compete more effectively with foreign cell phone manufacturers

C) a limit set by the Korean government on the number of cell phones that the United States can import fro Korea

D) a $50 per-cell phone-fee imposed on all cell phones vehicles imported into the United States

35) In order to avoid the imposition of other types of trade barriers, foreign producers will sometimes agree to voluntary export restraints. With voluntary export restraints, foreign producers

A) agree to meet specific quality standards required by the importing country.

B) limit their exports to a country.

C) pay a tax on all products they export.

D) must agree to import an equal quantity of products that they export.

36) The “Buy American” provision in the 2009 stimulus package required that stimulus money be spent only on U.S.-made goods, effectively acting as a quota of zero imports when stimulus money was being spent. In the market for steel, the “Buy American” provision would ________ the price of steel in the United States and ________ the quantity of steel demanded in the United States.

A) increase; increase

B) increase; decrease

C) decrease; increase

D) decrease; decrease

37) The “Buy American” provision in the 2009 stimulus package required that stimulus money be spent only on U.S.-made goods, effectively acting as a quota of zero imports when stimulus money was being spent. In the U.S. steel market, a “Buy American” provision in the 2009 stimulus package would

A) convert some consumer surplus to deadweight loss.

B) transfer some deadweight loss to producer surplus.

C) transfer some producer surplus to consumer surplus.

D) reduce the producer surplus received by foreign manufacturers.

Figure 19-3

Since 1953 the United States has imposed a quota to limit the imports of peanuts.  Figure 19-3 illustrates the impact of the quota. 

38) Refer to Figure 19-3. Without the quota, the domestic price of peanuts equals the world price which is $2.00 per pound. What is the quantity of peanuts supplied by domestic producers in the absence of a quota?

A) 10 million pounds

B) 28 million pounds

C) 30 million pounds

D) 40 million pounds

39) Refer to Figure 19-3. If there was no quota, how many pounds of peanuts would domestic consumers purchase?

A) 10 million

B) 28 million

C) 34 million

D) 40 million

40) Refer to Figure 19-3. If there was no quota, how many pounds of peanuts would be imported?

A) 16 million

B) 24 million

C) 30 million

D) 40 million