Question : 7.1   The United States in the International Economy 1) When the : 1388249

 

7.1   The United States in the International Economy

 

1) When the U.S. government places a tariff on a product, such as the tariff on tires imported from China, the quantity of the product imported will generally ________ and the price paid by consumers for the product will generally ________.

A) increase; increase

B) increase; decrease

C) decrease; increase

D) decrease; decrease

 

 

2) Trade restrictions tend to preserve ________ in the protected industries and lead to ________ in other industries.

A) almost all jobs; economic growth

B) well over half of the jobs; price decreases

C) relatively few jobs; job losses

D) no jobs; increased productivity

 

 

3) Protection in the form of tariffs create winners and losers. Winners include ________ and losers include ________.

A) U.S. consumers and taxpayers; foreign firms that rely on U.S. exports

B) firms sheltered from foreign competition; U.S. consumers and taxpayers

C) U.S. firms that rely on exports to foreign countries;  foreign manufacturers

D) the U.S. government; firms sheltered from foreign competition

 

4) Over the past several decades there has been a rapid growth in international trade. This growth has been due to all except one of the following factors. Which factor has not contributed to the growth of international trade?

A) the spread of reliable communications

B) a change in the tariffs charged on many goods

C) a reduction in shipping costs

D) favorable changes in government policies

 

 

5) A tax imposed by a government on imports of a good into a country is called

A) an import levy.

B) an import fine.

C) a tariff.

D) an import quota.

 

 

6) Imports are goods and services bought domestically

A) and produced domestically.

B) but produced in other countries.

C) and resold at a profit.

D) and not subject to tariffs.

 

 

7) Domestically produced goods and services sold to other countries are referred to as

A) exports.

B) imports.

C) transfer payments.

D) capital outflow.

 

8) When Sophie, a French citizen, purchases a Dell computer in Paris that was produced in Texas, the purchase is

A) both a U.S. and an French import.

B) a U.S. import and an French export.

C) a U.S. export and an French import.

D) neither an export nor an import for either country.

 

 

9) When Tesla, a U.S. company, purchases Italian-made Pirelli tires for its automobiles, the purchase is

A) both a U.S. and an Italian import.

B) a U.S. import and an Italian export.

C) a U.S. export and an Italian import.

D) neither an export nor an import for either country.

 

 

10) Which of the following statements about the importance of trade to the U.S. economy is false?

A) Since 1950, both exports and imports have steadily increased as a fraction of U.S. gross domestic product.

B) Overall, about 20 percent of U.S. manufacturing jobs depend directly or indirectly on exports.

C) The United States is the second largest exporter in the world.

D) The U.S. economy is highly dependent on international trade for growth in its gross domestic product.

 

 

 

 

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