Chapter Quiz Chapter 9

A  import restrictions.

B  export restrictions.

C  free trade.

D  none of the above.

A  Free trade harms both domestic producers and domestic consumers and therefore reduces total surplus.

B  Free trade is harmful to importing countries if foreign countries subsidize their exporting industries.

C  Free trade destroys domestic jobs.

D  Free trade harms infant industries in an importing country.

E  Free trade harms the national security if vital products are imported.

A  An import quota reduces the price to the domestic consumers.

B  For every tariff, there is an import quota that could have generated a similar result.

C  Voluntary quotas established by the exporting country generate no deadweight loss for the importing country.

D  Import quotas are preferred to tariffs because they raise more revenue for the imposing government.

A  A tariff increases consumer surplus, decreases producer surplus, increases revenue to the government, and increases total surplus.

B  A tariff increases consumer surplus, decreases producer surplus, increases revenue to the government, and reduces total surplus.

C  A tariff increases producer surplus, decreases consumer surplus, increases revenue to the government, and increases total surplus.

D  A tariff increases producer surplus, decreases consumer surplus, increases revenue to the government, and reduces total surplus.

A  the jobs argument

B  the national-security argument

C  the deadweight-loss argument

D  the infant-industry argument

A  domestic consumers are better off, domestic producers are worse off, and the nation is better off because the gains of the winners exceed the losses of the losers.

B  domestic producers are better off, domestic consumers are worse off, and the nation is worse off because the losses of the losers exceed the gains of the winners.

C  domestic producers are better off, domestic consumers are worse off, and the nation is better off because the gains of the winners exceed the losses of the losers.

D  domestic consumers are better off, domestic producers are worse off, and the nation is worse off because the losses of the losers exceed the gains of the winners.

A  a comparative advantage in the production of the good.

B  a comparative disadvantage in the production of the good.

C  an absolute disadvantage in the production of the good.

D  an absolute advantage in the production of the good.

A  both producers and consumers will gain.

B  consumers will gain and producers will lose.

C  both producers and consumers will lose.

D  producers will gain and consumers will lose.

A  below the before-trade domestic price of the good.

B  equal to the before-trade domestic price of the good.

C  above the before-trade domestic price of the good.

D  none of the above.