Question :
1.CongressmanSmithcitesthe“jobsargument”whenhearguesinfavorofrestrictionsontrade?hearguesthateverythingcanbeproducedatlowercostinothercountries.ThelikelyflawinCongressmanSmith’sreasoningisthatheignore : 1262627
1.CongressmanSmithcitesthe“jobsargument”whenhearguesinfavorofrestrictionsontrade?hearguesthateverythingcanbeproducedatlowercostinothercountries.ThelikelyflawinCongressmanSmith’sreasoningisthatheignoresthefactthat
a.thereisnoevidencethatanyworkereverlosthisorherjobbecauseoffreetrade.
b.unemploymentoflaborisnotaseriousproblemrelativetoothereconomicproblems.
c.thegainsfromtradearebasedoncomparativeadvantage.
d.thegainsfromtradearebasedonabsoluteadvantage.
2.“Ownersoffirmsinyoungindustriesshouldbewillingtoincurtemporarylossesiftheybelievethatthosefirmswillbeprofitableinthelongrun.”Thisobservationhelpstoexplainwhymanyeconomistsareskepticalaboutthe
a.national-securityargument.
b.infant-industryargument.
c.unfair-competitionargument.
d.jobsargument.
3.Oneshouldbeespeciallywaryofthenational-securityargumentforrestrictingtradewhenthatargumentismadeby
a.representativesofindustry.
b.representativesofthedefenseestablishment.
c.membersofhouseholds.
d.foreigngovernmentofficials.
4.The“unfaircompetition”argumentmightbecitedbyanAmericanwhobelievesthat
a.almosteverycountryhasacomparativeadvantage,relativetotheUnitedStates,inproducingalmostallgoods.
b.youngindustriesshouldbeprotectedagainstforeigncompetitionuntiltheybecomeprofitable.
c.theAmericanautomobileindustryshouldbeprotectedagainstJapanesefirmsthatareabletoproduceautomobilesatrelativelylowcost.
d.theFrenchgovernment’ssubsidiestoFrenchfarmersjustifyrestrictionsonAmericanimportsofFrench
5.IftheUnitedStatesthreatenstoimposeatariffonHonduranblueberriesifHondurasdoesnotremoveagriculturalsubsidies,theUnitedStateswillbe
a.betteroffnomatterhowHondurasresponds.
b.betteroffifHondurasgivesin,andwillbenoworseoffifitdoesn’t.
c.worseoffifHondurasdoesn’tgiveintothethreat.
d.worseoffnomatterhowHondurasresponds.
6.Whichofthefollowingargumentsfortraderestrictionsisoftenadvanced?
a.TraderestrictionsmakeallAmericansbetteroff.
b.Traderestrictionsincreaseeconomicefficiency.
c.Traderestrictionsarenecessaryforeconomicgrowth.
d.Traderestrictionsaresometimesnecessaryfornationalsecurity.
7.AboutwhatpercentoftotalworldtradeisaccountedforbycountriesthatbelongtotheWorldTradeOrganization?
a.54percent
b.72percent
c.89percent
d.97percent
8.Atpresent,theUnitedStatesusesasystemofquotastolimittheamountofsugarimportedintothecountry.Whichofthefollowingstatementsismostlikelytrue?
a.ThequotasareprobablytheresultoflobbyingfromU.S.consumersofsugar.ThequotasincreaseconsumersurplusfortheUnitedStates,reduceproducersurplusfortheUnitedStates,andharmforeignsugarproducers.
b.ThequotasareprobablytheresultoflobbyingfromU.S.producersofsugar.ThequotasincreaseproducersurplusfortheUnitedStates,reduceconsumersurplusfortheUnitedStates,andharmforeignsugarproducers.
c.Thequotasareprobablytheresultoflobbyingfromforeignproducersofsugar.ThequotasreduceproducersurplusfortheUnitedStates,increaseconsumersurplusfortheUnitedStates,andbenefitforeignsugarproducers.
d.U.S.lawmakersdidnotneedtobelobbiedtoimposethequotasbecausetotalsurplusfortheUnitedStatesishigherwiththequotasthanwithoutthem.
9.SupposeFrancesubsidizesFrenchwheatfarmers,whileGermanyoffersnosubsidytoGermanwheatfarmers.AsaresultoftheFrenchsubsidy,salesofFrenchwheattoGermany
a.maypromptGermanfarmerstoinvoketheunfair-competitionargument.
b.increasetheconsumersurplusofGermanbuyersofwheat.
c.increasethetotalsurplusoftheGermanpeople.
d.Alloftheabovearecorrect.
10.CongresswomanGagarepresentsastateinwhichseveralfirmsmanufacturefurniture.Shewantstoimposetariffsonallimportedfurniture.Whichofthefollowingistheleastlikelyconsequenceofsuchtariffs?
a.Domesticfurniturebuyerswillloseconsumersurplus,havelessvariety,andwillpayhigherprices.
b.Domesticfurnitureproducerswillgainproducersurplus.
c.Domesticfurnitureproducerswillhaveahigherrateoftechnologicaladvance.
d.Domesticfurnitureproducerswillhavemoremarketpower.