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
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, 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
There are asymmetric incentives to support and to oppose protectionist trade
policies, with the stronger incentives going to those that would seek protection. -
....ANSWER ...-True
Which of the following is NOT a true statement? - ....ANSWER ...-Trade
barriers are usually a good way of protecting jobs
Some economists argue that free trade is beneficial regardless of the actions of a
country's trading partners, including trading partners that heavily protect their
home markets. - ....ANSWER ...-True
A countervailing duty is a tariff that is levied to counteract - ....ANSWER ...-
Subsidies given to foreign firms by their own governments
One reason why consumers are unlikely to be too upset about tariffs is because -
....ANSWER ...-The costs are o spread out that no one pays a big share of
the total
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
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
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, 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
There are asymmetric incentives to support and to oppose protectionist trade
policies, with the stronger incentives going to those that would seek protection. -
....ANSWER ...-True
Which of the following is NOT a true statement? - ....ANSWER ...-Trade
barriers are usually a good way of protecting jobs
Some economists argue that free trade is beneficial regardless of the actions of a
country's trading partners, including trading partners that heavily protect their
home markets. - ....ANSWER ...-True
A countervailing duty is a tariff that is levied to counteract - ....ANSWER ...-
Subsidies given to foreign firms by their own governments
One reason why consumers are unlikely to be too upset about tariffs is because -
....ANSWER ...-The costs are o spread out that no one pays a big share of
the total
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
