C719 Module 15B with expert curated questions and answers

What is the fundamental force that generates international trade?

a. the sea rule

b. absolute advantage

c. comparative advantage

d. the need for more goods and services

c. comparative advantage

A specified maximum amount of the good that may be imported in a given period of time is called what?

a. tariff

b. quota

c. sanction

d. dumping limit

b. quota

If the United States starts to import a good that the US is currently producing, what will happen to the market price of the good in the United States?

a. Increase

b. Decrease

c. No change

b. Decrease

The U.S. government has decided to impose trade barriers for cars imported from Japan. What will be the impact of this decision?

a. The impact on the Japanese economy will be negative because wages in the Japanese auto industry will increase.

b. The impact on the U.S. economy will be negative in comparison to free trade because U.S. consumers will face higher prices.

c. The impact on the U.S. economy will be positive in comparison to free trade because countries will be able to enjoy a variety of goods.

d. The impact on the Japanese economy will be positive in comparison to free trade because Japanese employment in the auto industry will increase.

b. The impact on the U.S. economy will be negative in comparison to free trade because U.S. consumers will face higher prices.

The Canadian government is considering applying tariffs on milk imported from the U.S. Who will benefit from this policy? Choose 2 answers

a. U.S. customers

b. U.S. producers

c. Canadian producers

d. Canadian government

c. Canadian producers

d. Canadian government

If a tariff is imposed on imports of shrimp into the United States, what are the effects on U.S. consumers and U.S. producers?

a. US consumers gain; US producers gain

b. US consumers gain; US producers lose

c. US consumers lose; US producers gain

d. US consumers lose; US producers lose

c. US consumers lose; US producers gain

In his first State of the Union address, President Biden pledged that the United States government would "buy American" when spending federal money on infrastructure and other purchases. What is likely to happen because of this policy?

a. US producers of these goods will be helped.

b. US consumers of these goods will be helped.

c. Foreign producers of these goods will be helped.

d. US government will be able to collect more taxes.

a. US producers of these goods will be helped

In response to trade barriers in the United States for sugar from Brazil, the Brazilian government decides to impose trade restrictions on wheat imported from the United States. What would happen if these two trade barrier policies were applied against each other? Choose 2 answers

a. Both the U.S. and Japanese governments will benefit.

b. This policy will benefit both U.S. and Brazilian customers.

c. Brazilian wheat producers and U.S. sugar producers will benefit.

d. Brazilian sugar producers and U.S. wheat producers will be hurt.

e. Prices of wheat in Brazil will go down, but the price of sugar in the United States will go up.

c. Brazilian wheat producers and U.S. sugar producers will benefit.

d. Brazilian sugar producers and U.S. wheat producers will be hurt.

Why would the national security argument against free trade be used?

a. to increase imports as a way of strengthening their country.

b. to limit exports to control the flow of technology to third world nations.

c. to increase exports as a way of earning money to strengthen their country.

d. to limit imports that compete with domestic producers important for national defense.

d. to limit imports that compete with domestic producers important for national defense.

Dumping falls under which of the following arguments against free trade?

a. Infant industry

b. National security

c. Unfair competition

d. Protection as a bargaining chip

c. Unfair competition

How is a developing country likely to be affected when it received foreign direct investment (FDI)?

a. Real GDP will increase.

b. Tax revenue will decrease.

c. Unemployment rate will increase.

d. FDI does not affect a developing country.

a. Real GDP will increase.

Carrier and some other companies in Indiana moved their production facilities overseas. What would happen as a result of this move? Choose 2 answers

a. The foreign companies would make more profits.

b. The U.S. would experience higher unemployment.

c. U.S. producers would be able to pay lower wages abroad.

d. The foreign countries would experience an economic slowdown.

b. The U.S. would experience higher unemployment.

c. U.S. producers would be able to pay lower wages abroad.

Organized labor has generally _____________ immigration because it wants to protect jobs for U.S. citizens, especially during and after a _________________.

a. Opposed; Recession

b. Opposed; Expansion

c. Supported; Recession

d. Supported; Expansion

a. Opposed; Recession