In order to avoid the imposition of other types of trade barriers, foreign producers will sometimes
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 "Buy American" provision in the 2009 stimulus package required that stimulus money be spent only
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 "B
The "Buy American" provision in the 2009 stimulus package required that stimulus money be spent only
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 "Bu
As a result of the tariff on Chinese tires, U.S. consumers are estimated to have spent ________ on i
As a result of the tariff on Chinese tires, U.S. consumers are estimated to have spent ________ on imported tires and ________ on U.S.-produced tires. A) more; more B) more; less C) less; more D) less; less
Free trade refers to trade between countries A) that is without shipping costs. B) that is licensed by both governments. C) that is without restrictions. D) of products which are free to low-income consumers.
A quota 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 safe
Which of the following is the best example of a quota?
Which of the following is the best example of a quota? 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 quant
A tariff A) makes domestic consumers better off. B) makes both domestic producers and consumers better off. C) makes everyone worse off. D) makes domestic producers better off.
In the 1980s Japan agreed to limit the quantity of automobiles it would export to the United States.
In the 1980s Japan agreed to limit the quantity of automobiles it would export to the United States. Why did the Japanese government agree to this trade restriction? A) Japanese automobile producers lobbied for the restrictions in order to incr
Which of the following is the best example of a tariff?
Which of the following is the best example of a tariff? A) a limit imposed on the number of sports utility vehicles that the United States can import from Japan B) a subsidy granted by the U.S. government to domestic garment manufacturers s
In order to avoid the imposition of other types of trade barriers, foreign producers will sometimes
In order to avoid the imposition of other types of trade barriers, foreign producers will sometimes agree to limit their exports to a country. What are these types of agreements called? A) involuntary export restraints B) voluntary export r
The "Buy American" provision in the 2009 stimulus package required that stimulus money be spent only
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. For the U.S. steel industry, a "
Which of the following is common to both tariffs and quotas?
Which of the following is common to both tariffs and quotas? A) Tariffs and quotas are both used as a means to increase government revenue. B) Tariffs and quotas both increase economic efficiency. C) Tariffs and quotas are both desig
A.Distinguish between a tariff and a quota. b.In what ways are tariffs and quotas similar?c.In what
a. Distinguish between a tariff and a quota. b. In what ways are tariffs and quotas similar? c. In what ways are tariffs and quotas different? d. Why might a foreign producer prefer a quota rather than a tariff?
In 1930, the U.S. government attempted to help domestic firms that were harmed by the Great Depressi
In 1930, the U.S. government attempted to help domestic firms that were harmed by the Great Depression by A) establishing the General Agreement on Tariffs and Trade (GATT). B) passing the Smoot-Hawley Tariff. C) establishing the World
In 1995 ________, which was established in 1948, was replaced by ________.
In 1995 ________, which was established in 1948, was replaced by ________. A) the GATT; the WTO B) the WTO; NAFTA C) the Smoot-Hawley Tariff; the GATT D) NAFTA; the Smoot-Hawley Tariff
The World Trade Organization (WTO) promotes foreign trade and investment, or globalization. In recen
The World Trade Organization (WTO) promotes foreign trade and investment, or globalization. In recent years opposition to globalization has led to violent protests at meetings of the WTO. One reason for these anti-globalization protests is A) fo
Many economists criticize protectionism because it causes losses to consumers and eliminates jobs in
Many economists criticize protectionism because it causes losses to consumers and eliminates jobs in domestic industries that use protected products. Why, then, do some people support protectionism? A) The criticisms of economists are based on t
Which of the following describes the infant industry argument for protectionism?
Which of the following describes the infant industry argument for protectionism? A) An industry must be protected in its early stages of development so that firms can compete with government-subsidized foreign competition. B) Some strategic
Suppose that American firms claim that protectionism in Canada is on the rise as the Canadian govern
Suppose that American firms claim that protectionism in Canada is on the rise as the Canadian government attempts to protect its infant industries with a "Buy Canadian" provision. This policy, similar to the original "Buy American"
The selling of a product for a price below its cost of production is called
The selling of a product for a price below its cost of production is called A) fair competition. B) dumping. C) unfair competition. D) operating at a loss.
Imposing tariffs in cases of dumping A) is allowed under the WTO agreement. B) is not allowed under the WTO agreement. C) is not addressed by the WTO agreement. D) has never occurred, even though it is allowed under the WTO agree
One reason for the success that firms have in getting the government to erect barriers to foreign co
One reason for the success that firms have in getting the government to erect barriers to foreign competition is that jobs lost to foreign competition are easy to identify but jobs created by foreign trade are often hard to identify. Which of the fol
Refer to the Article Summary. The protectionism being granted to Russian firms will cause the greate
Refer to the Article Summary. The protectionism being granted to Russian firms will cause the greatest harm to A) Russian manufacturers. B) the Russian government. C) manufacturers who export to Russia. D) Russian consumers.
In the United States during the Great Depression, tariffs were ________ than they were following Wor
In the United States during the Great Depression, tariffs were ________ than they were following World War II, and ________ than they are today. A) higher; higher B) higher; lower C) lower; higher D) lower; lower
In 1930, the U.S. government attempted to help domestic firms that were harmed by the Great Depressi
In 1930, the U.S. government attempted to help domestic firms that were harmed by the Great Depression by passing the Smoot-Hawley Tariff. In response to this tariff, other countries ________ and international trade ________. A) lowered their ta
In 1995, the General Agreement on Tariffs and Trade (GATT), which was established in 1948, was repla
In 1995, the General Agreement on Tariffs and Trade (GATT), which was established in 1948, was replaced by the World Trade Organization (WTO). Why did members of the GATT push for the establishment of the WTO? A) The GATT agreement only covered
The World Trade Organization (WTO) promotes foreign trade and investment, or globalization. In recen
The World Trade Organization (WTO) promotes foreign trade and investment, or globalization. In recent years opposition to globalization has led to violent protests at meetings of the WTO. All of the following are reasons for these anti-globalization
Your roommate Hansen argues that American producers cannot compete with foreign producers because wa
Your roommate Hansen argues that American producers cannot compete with foreign producers because wages are lower in foreign countries than in the United States. Hansen A) is incorrect. Free trade raises living standards by increasing economic e
All but one of the following statements is used to justify protectionism. Which statement is not use
All but one of the following statements is used to justify protectionism. Which statement is not used to justify protectionism? A) Free trade leads to higher prices for imported goods. B) Free trade reduces employment by driving domestic
Domestic producers require time to gain experience and lower their unit costs; this will allow these
Domestic producers require time to gain experience and lower their unit costs; this will allow these producers to compete successfully in international markets. This statement describes the ________ argument for protectionism. A) diseconomies of
Economists believe the most persuasive argument for protectionism is to
Economists believe the most persuasive argument for protectionism is to A) save jobs. B) protect high wages. C) protect national security. D) protect infant industries.
Dumping refers to A) selling inferior products to unsuspecting consumers. B) selling a product for a price below its cost of production. C) exporting products that do not meet domestic safety standards. D) illegally avoiding tarif
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