EXAM 3 ECON 2101 UNCC
(Theresa Mannah-Blankson)(63
questions and answers with all
diagrams)
Which of the following is not a form of protectionism?
Sales Taxes
Which of the following will benefit domestic buyers of TVs?
an elimination of an import tariff on TVs from South Korea
A tariff on the import of sugar will hurt ______________.
domestic consumers of sugar,
domestic producers of goods that use sugar as an input to production
A tariff on the import of sugar will benefit
domestic producers of sugar
Which of the following are examples of nontariff barriers?
a requirement for imported toys to pass a safety inspection before they can
be sold in the U.S.
A requirement on imported car emissions to comply to U.S. air quality
regulations before they can be sold in the U.S.
When the product of a protected industry is an input in the production of
other industries, then the higher input price from protectionism results in
higher costs of production, higher prices, lost sales, thus, loss of jobs,
if consumers are paying higher prices to the protected industry, they have
less money to spend on goods from other industries, and so jobs are lost in
those other industries.
Dumping refers to the sale of a product in a foreign market
at a price below its cost of production
, Profit-seeking multinational companies shift their production from countries
with strong environmental standards to countries with weak standards, thus
reducing their costs and increasing their profits. This phenomenon is called
race to the bottom
What is an explanation of dumping that does not assume sinister motives?
The hidden opportunity cost of using protectionism to save jobs in one
industry is __________________.
jobs sacrificed in other industries
Under the WTO rules for protectionism under the unsafe consumer products
argument, countries should apply the same safety standards to domestic
goods as they apply to imported goods
True
Because trade raises _______________ as firms and workers play to their
comparative advantage, trade will also cause the average level of wages in
an economy to ____________________.
worker productivity; rise
Most people, economists included, consider child labor to be morally
unacceptable and would support aggressive efforts to eliminate such
practices—including shutting out imported products made with such labor.
Which of the following is true?
eliminating such practices may not be a good solution as workers may have
even less attractive alternative jobs, perhaps scavenging garbage or
prostitution
The national interest argument is about protecting certain industries that our
country is dependent on, such as
the oil industry
industries that are key for our national defense
Because trade raises the amount that an economy can produce by letting
firms and workers play to their comparative advantage, trade will also cause
the average level of wages in an economy to fall.
False
Free trade can improve environmental standards because
(Theresa Mannah-Blankson)(63
questions and answers with all
diagrams)
Which of the following is not a form of protectionism?
Sales Taxes
Which of the following will benefit domestic buyers of TVs?
an elimination of an import tariff on TVs from South Korea
A tariff on the import of sugar will hurt ______________.
domestic consumers of sugar,
domestic producers of goods that use sugar as an input to production
A tariff on the import of sugar will benefit
domestic producers of sugar
Which of the following are examples of nontariff barriers?
a requirement for imported toys to pass a safety inspection before they can
be sold in the U.S.
A requirement on imported car emissions to comply to U.S. air quality
regulations before they can be sold in the U.S.
When the product of a protected industry is an input in the production of
other industries, then the higher input price from protectionism results in
higher costs of production, higher prices, lost sales, thus, loss of jobs,
if consumers are paying higher prices to the protected industry, they have
less money to spend on goods from other industries, and so jobs are lost in
those other industries.
Dumping refers to the sale of a product in a foreign market
at a price below its cost of production
, Profit-seeking multinational companies shift their production from countries
with strong environmental standards to countries with weak standards, thus
reducing their costs and increasing their profits. This phenomenon is called
race to the bottom
What is an explanation of dumping that does not assume sinister motives?
The hidden opportunity cost of using protectionism to save jobs in one
industry is __________________.
jobs sacrificed in other industries
Under the WTO rules for protectionism under the unsafe consumer products
argument, countries should apply the same safety standards to domestic
goods as they apply to imported goods
True
Because trade raises _______________ as firms and workers play to their
comparative advantage, trade will also cause the average level of wages in
an economy to ____________________.
worker productivity; rise
Most people, economists included, consider child labor to be morally
unacceptable and would support aggressive efforts to eliminate such
practices—including shutting out imported products made with such labor.
Which of the following is true?
eliminating such practices may not be a good solution as workers may have
even less attractive alternative jobs, perhaps scavenging garbage or
prostitution
The national interest argument is about protecting certain industries that our
country is dependent on, such as
the oil industry
industries that are key for our national defense
Because trade raises the amount that an economy can produce by letting
firms and workers play to their comparative advantage, trade will also cause
the average level of wages in an economy to fall.
False
Free trade can improve environmental standards because
