Chapter 6 Quiz (Econ 13, Week 8)

What are the three main forms of protectionism?

• Tariffs, subsidies, and non-tariff barriers

• Tariffs, import quotas, and non-tariff barriers

• Import quotas, subsidies, and export taxes

• Export taxes, tariffs, and subsidies

What is the effect of tariffs on imported products?

• They encourage imports by making imported products less expensive to consumers

• They have no impact on the price or availability of imported products

• They discourage imports by making imported products more expensive to consumers

• They increase the export potential of domestic products

According to the text, what is a potential consequence for consumers in Plaque if imports are restricted?

• Consumers will end up buying more sugar at a lower price

• Consumers will end up buying less sugar and paying a higher price for what they buy

• Consumers will benefit from higher quality sugar

• Consumers will not experience any changes in their purchasing habits

What is the basic policy recommendation mentioned in the text regarding imports of foreign products?

• Imports of foreign products should be increased

• Imports of foreign products should be reduced or even cut off

• Imports of foreign products should be subsidized

• Imports of foreign products should be taxed less

What is the primary concern of some environmentalists regarding multinational firms and globalization?

• Multinational firms may increase environmental protection laws

• Multinational firms may move production to countries with stricter pollution standards

• Multinational firms may evade environmental protection laws by moving production to countries with loose or nonexistent pollution standards

• Multinational firms may reduce their overall production to meet environmental standards

What is one of the consequences of protectionism mentioned in the text?

• It decreases prices for consumers in the country enacting protectionism.

• It requires domestic consumers to pay higher prices to benefit domestic producers.

• It increases the number of jobs in industries that are not protected.

• It ensures that tariffs are imposed on all countries equally.

According to the text, what is a hidden opportunity cost of using protectionism?

• It increases the average level of wages in an economy.

• It saves jobs in one industry while costing jobs in other industries.

• It makes domestic consumers pay lower prices for imported goods.

• It allows foreign producers to sell their products at lower prices.

What impact does trade have on the average level of wages in an economy, as mentioned in the text?

• Trade decreases the average level of wages in an economy.

• Trade has no impact on the average level of wages in an economy.

• Trade causes the average level of wages in an economy to increase.

• Trade causes the average level of wages in an economy to fluctuate unpredictably.

Which group of workers is mentioned as being less likely to be impacted by imports from low-wage countries?

• High-skilled US workers

• Low-skilled US workers in service jobs

• Medium-wage Americans in manufacturing

• Workers in industries that do not sell globally

According to the text, low-wage US workers suffer from protectionism in which of the following ways?

• They are able to purchase basic necessities at lower prices.

• They are forced to pay higher prices for basic necessities.

• They receive subsidies for basic necessities.

• They benefit from increased wages due to protectionism.