International Trade Policy

2. 18 International Trade Policy CLICKER QUESTIONS

3. Checkpoint 18.2 Checkpoint 18.3 Checkpoint 18.1 Question 5 Question 8 Question 1 Question 9 Question 6 Question 2 Question 10 Question 7 Question 3 Question 4

4. CHECKPOINT 18.1 Question 1 When Italy buys a Boeing jet, it pays ____ if it produced the jet itself and the price Boeing receives is ____ than what an additional U.S. buyer is willing to pay. • a lower price than; lower • a higher price than; higher • a lower price than; higher • a higher price than; lower • the same price as; higher

5. CHECKPOINT 18.1 Question 2 Suppose that the price of a good in a country that does not trade internationally is _____ the world price. If this country starts to trade internationally, it will _____ the good and _____ less of the good. • equal to; produce more of; import • less than; export; produce • greater than; import; consume • less than; increase production of the good; import • greater than; import; produce

6. CHECKPOINT 18.1 Question 3 When a country exports a good, the country’s producers of the good ____, consumers of the good ____, and the country ____ from the trade. • gain; gain; gains • lose; gain; gains • gain; lose; gains • lose; lose; loses • gain; lose; loses

7. CHECKPOINT 18.1 Question 4 When a country imports a good, the domestic ______ of the good gain, domestic ________ of the good lose, and the gains from importing the good _______ the losses. • producers; consumers; equal • producers; consumers; are less than • consumers; producers; exceed • consumers; producers; exceed • producers; consumers; exceed

8. CHECKPOINT 18.2 Question 5 When a tariff is imposed on an imported good, the ____ of that good increases. • domestic quantity purchased • domestic quantity produced • quantity imported • quantity exported • world price

9. CHECKPOINT 18.2 Question 6 When a tariff is imposed on a good, domestic consumers of the good ____ and domestic producers of the good ____. • win; lose • lose; lose • win; win • lose; win • lose; neither win nor lose

10. CHECKPOINT 18.2 Question 7 Which of the following parties benefits from an import quota but not from a tariff? • the domestic government • domestic producers • domestic consumers • domestic importers of the good • the foreign government

11. CHECKPOINT 18.3 Question 8 The United States _________ cheap labor. • needs tariffs so that it can compete with countries that have • should not trade with countries that have • will not gain from trade with countries with • does not need tariffs to be able to compete with • avoids trading with countries that have

12. CHECKPOINT 18.3 Question 9 What is a major reason international trade is restricted in developed countries? • rent seeking • to allow competition with cheap foreign labor • to save jobs • to prevent dumping • for national security

13. CHECKPOINT 18.3 Question 10 The major reason most less-developed nations impose tariffs is because _______. • the government gains revenue from the tariff • low-paid domestic workers are protected from high- paid foreign workers. • the tariff increases the nation’s total income • the tariff improves its national security • the tariff helps to diversify the domestic economy