1) One difference between the tariffs on steel imports levied in 2002 and the tariffs on Chinese tire imports levied in 2009 was that:

Group of answer choices

U.S. tire producers supported the tire tariff, while U.S. steel producers did not support the steel tariff.

U.S. steel workers supported the steel tariff, while U.S. tire workers did not support the tire tariff.

U.S. steel producers supported the steel tariff, while U.S. tire producers did not support the tire tariff.

U.S. tire workers supported the tire tariff, while U.S. steel workers producers did not support the steel tariff.

2) (Scenario: A Monopolist) A monopolist faces a demand curve given byP= 20-Qand has total costs given byTC=Q2.

What is its profit-maximizing price and quantity?

Group of answer choices

$15, 5 units

$20, 40 units

$10, 10 units

$5, 15 units

3) (Scenario: Discriminating Monopolist) The demand curve in its home market isP= 200 -Q; the demand curve in its foreign market isP= 160 - 2Q; and its marginal cost is a constant $20 per unit.

What is the discriminating monopolist's profit perunitin the home market?

Group of answer choices

$110

$70

$35

$90

4) Suppose that: (1) the United States has a comparative advantage in producing chemicals; (2) Costa Rica has a comparative advantage in producing sugar, and (3) the United States imposes a quota on its imports of Costa Rican sugar. Now suppose that the United States eliminates its import quotas on Costa Rican sugar. Which of the following is MOST likely to occur for the United States?

Group of answer choices

Consumer surplus for American consumers of chemical products will rise.

Consumer surplus for American consumers of sugar products will rise.

Terms of Trade for the U.S. government will rise.

Producer surplus for American sugar producers will rise.

5) Suppose that Home has 20% of the world's capital, 10% of the world's skilled labor, and 30% of the world's unskilled labor and produces 20% of the world's GDP. What does this information suggest?

Group of answer choices

only that Home is capital abundant

Home is not abundant in capital, skilled labor, or unskilled labor.

only that Home is abundant in unskilled labor

only that Home is skilled-labor abundant

6)Suppose that the free-trade price of a ton of steel is 500. (Note: is the symbol for the euro, a common currency used in 19 European countries, including Finland.) Finland, a small country, imposes a 60 per-ton specific tariff on imported steel. With the tariff, Finland produces 300,000 tons of steel and consumes 600,000 tons of steel.

Who will gain and who will lose as a result Finland's 60-per-ton tariff on imported steel?

Group of answer choices

Finnish steel producers will be better off; Finnish steel consumers will be worse off with the tariff than without it.

Both Finnish steel producers and steel consumers will be worse off with the tariff than without it.

Both Finnish steel producers and steel consumers will be better off with the tariff than without it.

Finnish steel producers will be worse off; Finnish steel consumers will be better off with the tariff than without it.

7) Suppose that the U.S. International Trade Commission determines that there is material injury to the U.S. furniture industry because of Brazilian subsidies on its exports of furniture to the United States. Which type of tariff will be applied on U.S. imports of Brazilian furniture?

Group of answer choices

export duties

antidumping duties

safeguard duties levied under section 421 of the amended U.S. Trade Act of 1974

countervailing duties

8)The small-country monopolist's free-trade equilibrium occurs:

Group of answer choices

where the home demand is completely satisfied by foreign importers.

at minimum marginal cost.

at the "world" price.

whereMC=MR, whereMRis declining and below price.

9)When trade occurs among nations with similar tastes, technology, products, and costs, monopolistically competitive firms will have an incentive to:

Group of answer choices

raise prices to take advantage of a lucrative situation.

cut corners in manufacturing to boost profits.

lower prices to get new customers and increase market share.

raise quality, so they can charge a higher price than the competition.

10)Which of the following was NOT a reason for Canada to join NAFTA?

Group of answer choices

Canada did not want U.S. products to dominate its domestic market.

Canadian firms could enjoy lower average costs by producing more.

Canadian firms could expand their markets by selling to the United States and Mexico.

Canada would experience an increase in income and employment by joining NAFTA.