Question :
19.4 Government Policies That Restrict International Trade
1) Trade between countries : 1267019
19.4 Government Policies That Restrict International Trade
1) Trade between countries that is without restrictions is called
A) unobstructed commerce.
B) unabated trade.
C) free trade.
D) unencumbered trade.
Figure 19-1
Figure 19-1 shows the U.S. demand and supply for leather footwear.
2) Refer to Figure 19-1. Under autarky, the consumer surplus is ________ and the producer surplus is ________.
A) $195; $105
B) $300; $285
C) $260; $40
D) $555; $105
3) Refer to Figure 19-1. Under autarky, the deadweight loss is
A) $0.
B) $15.
C) $30.
D) $40.
4) Refer to Figure 19-1. Suppose the government allows imports of leather footwear into the United States. What happens to the market price and what is the quantity of imports?
A) The price equals $24 and imports equal 20 units.
B) The price falls to $24 and imports equal 5 units.
C) The price falls to $18 and imports equal 15 units.
D) The price equals $18 and imports equals 10 units.
5) Refer to Figure 19-1. Suppose the government allows imports of leather footwear into the United States. The market price falls to $18. What are the values of consumer surplus and domestic producer surplus?
A) Consumer surplus = $270; producer surplus = $40.
B) Consumer surplus = $320; producer surplus = $40.
C) Consumer surplus = $320; producer surplus = $360..
D) Consumer surplus = $305; producer surplus = $320.
6) Which of the following is not an example of a trade restriction?
A) tariffs
B) quotas and voluntary export restraints
C) legislation requiring that cars sold in a country have a 50 percent domestic content
D) consumer preferences for goods produced domestically
7) Under autarky, consumer surplus is represented by the area
A) above the supply curve and below the equilibrium price.
B) above the supply curve and below the demand curve.
C) below the demand curve and above the equilibrium price.
D) above the demand curve and below the supply curve.
8) A tariff is
A) a limit placed on the quantity of goods that can be imported into a country.
B) a tax imposed by a government on goods imported into a country.
C) a subsidy granted to importers of a vital input.
D) a health and safety restriction imposed on an imported product.
9) A numerical limit imposed by a government on the quantity of a good that can be imported into the country is called a
A) tariff.
B) quota.
C) quantity floor.
D) barricade.
10) Which of the following is the best example of a tariff?
A) a subsidy from the U.S. government to domestic manufacturers of residential air conditioners to enable them to compete more effectively with foreign producers
B) a limit on the quantity of residential air conditioners that can be imported from a foreign country
C) a $150 fee imposed on all imported residential air conditioners
D) a tax placed on all residential air conditioners sold in the domestic market to help offset the impact of emissions on the environment
