Q The change in welfare attributed to the terms of trade effect, when considered independently of changes in welfare associated with the decline in trade volume, will:
A reduce the nation's welfare
Q
A Country A has comparative advantage in apples
Q The reduction in the price of the import commodity that results when a large nation imposes an import tariff is attributed to the ____________ and constitutes a __________ of welfare for the nation.
A terms of trade effect, gain
Q With free trade, the small nation will import all its commodities at what price level?
A the world market price
Q The difference between what consumers would be willing to pay for each unit of commodity and what they actually pay for that unit is called ____________.
A consumer surplus
Q The increase in consumption in each nation resulting from specialization in production and trading is referred to as:
A gains from trade
Q If a nation imposes a quota and the licenses to import are auctioned off to domestic importers then:
A The revenue effect of the quota and a tariff will be identical
Q If import-competing firms expect the income of domestic consumers to increase and they also the demand for their product to increase they would prefer:
A Free trade.
Q When the amount of a commodity that must be given up to produce each additional unit of another commodity, regardless of the amount of the commodity foregone, is the same at every level of production, which of the following exists?
A constant opportunity costs
Q With ______________, inputs increase proportionately more than the increase in output.
A Decreasing returns to scale
Q When a specific tariff is used instead of an ad valorem tariff:
A cheaper goods enjoy a greater degree of protection than higher priced goods
Q Community indifference curves are __________________ sloped and _____________ to the origin.
A negatively, convex
Q Given that the imposition of a tariff will improve the welfare of a large nation, which of the following is true?
A The large nation's gains results in its trading partners' losses
Q Which of the following statement regarding international trade is correct?
A International trade acts as a substitute for the international mobility of factors of production in its effect on factor prices
Q If the infant-industry argument is valid then evaluate which of the following is a better policy.
A Subsidization of the infant industry
Q
A Neither
Q A(n) __________ is a tax or duty levied on the traded commodity as it enters a nation.
A import tariff
Q According to the Heckscher-Ohlin theory, nations heavily endowed with labor will:
A export more labor intensive goods.
Q Relative prices are different for each nation because their production frontiers and indifference curves differ in _______________.
A shape and location
Q Compare the effects of tariff and quota, if the objective is to restrict the quantity of import, then
A quota is more effective than tariff
------
GOT 90 / 100 ON FIRST TRY. AMAZING~
A reduce the nation's welfare
Q
A Country A has comparative advantage in apples
Q The reduction in the price of the import commodity that results when a large nation imposes an import tariff is attributed to the ____________ and constitutes a __________ of welfare for the nation.
A terms of trade effect, gain
Q With free trade, the small nation will import all its commodities at what price level?
A the world market price
Q The difference between what consumers would be willing to pay for each unit of commodity and what they actually pay for that unit is called ____________.
A consumer surplus
Q The increase in consumption in each nation resulting from specialization in production and trading is referred to as:
A gains from trade
Q If a nation imposes a quota and the licenses to import are auctioned off to domestic importers then:
A The revenue effect of the quota and a tariff will be identical
Q If import-competing firms expect the income of domestic consumers to increase and they also the demand for their product to increase they would prefer:
A Free trade.
Q When the amount of a commodity that must be given up to produce each additional unit of another commodity, regardless of the amount of the commodity foregone, is the same at every level of production, which of the following exists?
A constant opportunity costs
Q With ______________, inputs increase proportionately more than the increase in output.
A Decreasing returns to scale
Q When a specific tariff is used instead of an ad valorem tariff:
A cheaper goods enjoy a greater degree of protection than higher priced goods
Q Community indifference curves are __________________ sloped and _____________ to the origin.
A negatively, convex
Q Given that the imposition of a tariff will improve the welfare of a large nation, which of the following is true?
A The large nation's gains results in its trading partners' losses
Q Which of the following statement regarding international trade is correct?
A International trade acts as a substitute for the international mobility of factors of production in its effect on factor prices
Q If the infant-industry argument is valid then evaluate which of the following is a better policy.
A Subsidization of the infant industry
Q
A Neither
Q A(n) __________ is a tax or duty levied on the traded commodity as it enters a nation.
A import tariff
Q According to the Heckscher-Ohlin theory, nations heavily endowed with labor will:
A export more labor intensive goods.
Q Relative prices are different for each nation because their production frontiers and indifference curves differ in _______________.
A shape and location
Q Compare the effects of tariff and quota, if the objective is to restrict the quantity of import, then
A quota is more effective than tariff
------
GOT 90 / 100 ON FIRST TRY. AMAZING~
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