Economy Help 10 Pts?

Rick asked:


1.The infant industry argument for tariffs is criticized:
a.because it is difficult to determine which industries merit protection.
b.because direct subsidies are probably a better means of stimulating such industries.
c.because the tariffs may remain after the industry reaches maturity.
d.for all of the above reasons.

2.The increased-domestic-employment argument for tariff protection holds that:
a.domestic inflation is a desirable policy goal because it stimulates exports.
b.domestic deflation is a desirable policy goal because it stimulates imports.
c.an increase in tariffs will reduce net exports and stimulate domestic employment.
d.an increase in tariffs will increase net exports and stimulate domestic employment.

3.An excise tax on an imported good that is not produced domestically is called a:
a.protective tariff.
b.import quota.
c.revenue tariff.
d.voluntary export restriction.

4.Export supply curves are __________________; import demand curves are ___________________.
a.horizontal; vertical
b.vertical; horizontal
c.downsloping; upsloping
d.upsloping; downsloping

5.The terms of trade reflect the:
a.rate at which gold exchanges internationally for any domestic currency.
b.ratio at which nations will exchange two goods.
c.fact that the gains from trade will be equally divided.
d.cost conditions embodied in a single country’s production possibilities curve.

6.Which of the following is an example of a labor-intensive commodity?
a.cameras
b.beer
c.aspirin tablets
d.gasoline

7.In recent years the United States has:
a.exported more services abroad than it has imported.
b.had a small goods trade surplus with Japan.
c.had a large goods trade surplus with the rest of the world.
d.fallen to third behind Japan and Germany in the list of leading export nations (absolute volume basis).