Question

The U.S. government restricting the quantity of sugar imports into the country is an example of a(n):

1. trade settlement.
2. trade quota.
3. market hanger.
4. embargo.

The key industries argument for trade restrictions relies on the notion that:

1. war may disrupt trade flows.
2. some industries deserve protection because they provide positive spillover effects to the rest of the economy.
3. products with inelastic supply are the major source for job creation.
4. economies of scale are easier to achieve in exporting industries.

Which of the following statements regarding trade is NOT true?

1. Trade raises the price of goods for both trading partners.
2. Trade increases productivity through specialization and production according to comparative advantage.
3. Trade increases productivity through specialization and the division of knowledge.
4. Trade makes people better off when preferences differ.

A trade quota on imports:

1. benefits domestic consumers and hurts domestic producers.
2. hurts both domestic producers and domestic consumers.
3. benefits both domestic producers and domestic consumers.
4. benefits domestic producers and hurts domestic consumers.

Which of the following arguments is valid in the economics of international trade?

1. Trade restrictions help to reduce child labor in poor countries.
2. Trade can result in a net job gain in the whole country.
3. Protectionism increases the well-being of domestic consumers.
4. Trade restrictions are good ways to raise a country's employment.

Who does protectionism hurt?

1. domestic consumers only
2. international producers and domestic consumers
3. international producers only
4. domestic producers only

Which of the following statements is TRUE about the removal of trade barriers?

1. Consumers are harmed while some suppliers benefit.
2. Everyone benefits.
3. Consumers benefit while some suppliers are harmed.
4. Everyone is harmed.

Restricting the importation of foreign automobiles will:

1. raise the price of foreign automobiles but decrease the price of domestic automobiles.
2. raise the price of both foreign and domestic automobiles.
3. cause domestic producers to sell their automobiles at lower prices because of reduced competition.
4. lower the price of foreign automobiles but raise the price of domestic automobiles.

Technology and trade:

1. both create jobs in the short run but decrease the standard of living in the long run.
2. cannot continue to increase forever.
3. are not very similar to each other.
4. both destroy jobs in the short run but increase the standard of living in the long run.

Answer 1

Answer1) b is the right option

The U.S. government restricting the quantity of sugar imports into the country is an example of trade Quota

A restriction that limits the max quantity of a good that my be imported in a given period (US with sugar, bananas, textiles, and paper)
S + quota (but doesnt go below world price)

Answer2- b is the right option

The key industries argument for trade restrictions relies on the notion that some industries deserve protection because they provide positive spillover effects to the rest of the economy.

Answer 3 ) a is the right option

Trade raises the price of goods for both trading partners are false statement for trade.

Trade includes,

• Trade increases productivity through specialization and the division of knowledge.
• -Trade increases productivity through specialization and production according to comparative advantage.
• Trade makes people better off when preferences differ.

Answer 4) d is the right option

A trade quota on imports that benefits domestic producers and hurts domestic consumer.

The economic effects of an import quota is

- Protection to domestic industries from foreign comp.
- Protection to workers who otherwise might be laid off.
- Rising prices for the consumer by reducing the amount of cheaper, foreign-made goods
- Reducing competition for domestic industries

Answer 5 b is the right option

Trade can result in a net job gain in the whole country.

Answer 6 ) b is the right answer

International Producers and Domestic Consumers

• Economic policy of restraining trade between states through methods such as tariffs, restrictive quotas, and a variety of other government regulations designed to allow "fair competition" between imports and goods & services produced domestically.

Answer 7) c is the right option

Consumers benefit while some suppliers are harmed.

Answer 8) b is the right option

Restricting the importation of foreign automobiles will raise the price of both foreign and domestic automobiles.

Answer9) d is the right option

Technology and trade both destroy jobs in the short run but increase the standard of living in the long run