ECO 336 Chapter 7 Exam 2025
Questions and Answers
Which of the following describes the asymmetry Moncur Olson observed in the
incentives to support and oppose trade policy? - ....ANSWER ...-The benefits of
policy are concentrated, and the costs are spread out over a large number of participants.
Tariffs are highest in which sector internationally? - ....ANSWER ...-Agriculture
Which of the following is NOT a reason people tolerate tariffs and quotas? -
....ANSWER ...-Their personal jobs depend on tariffs and quotas
Which of the following is an example of a countervailing duty? - ....ANSWER ...-A
tariff is granted to an industry because foreign firms are subsidized by their governments
Television programming might be targeted for protection in a country using which of
the following arguments? - ....ANSWER ...-Cultural protection
Economic sanctions - ....ANSWER ...-are more likely to work if the international
community supports them
When comparing the U.S. and Mexican car assembly industries, the disadvantage of
higher U.S. wages is offset by - ....ANSWER ...-higher productivity in the United
States
…FOR STUDENTS ONLY…©️2025 ALL RIGHTS RESERVED… 1
Questions and Answers
Which of the following describes the asymmetry Moncur Olson observed in the
incentives to support and oppose trade policy? - ....ANSWER ...-The benefits of
policy are concentrated, and the costs are spread out over a large number of participants.
Tariffs are highest in which sector internationally? - ....ANSWER ...-Agriculture
Which of the following is NOT a reason people tolerate tariffs and quotas? -
....ANSWER ...-Their personal jobs depend on tariffs and quotas
Which of the following is an example of a countervailing duty? - ....ANSWER ...-A
tariff is granted to an industry because foreign firms are subsidized by their governments
Television programming might be targeted for protection in a country using which of
the following arguments? - ....ANSWER ...-Cultural protection
Economic sanctions - ....ANSWER ...-are more likely to work if the international
community supports them
When comparing the U.S. and Mexican car assembly industries, the disadvantage of
higher U.S. wages is offset by - ....ANSWER ...-higher productivity in the United
States
…FOR STUDENTS ONLY…©️2025 ALL RIGHTS RESERVED… 1
