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1.Which of the following situations will arise in the domestic market following the removal of an import quota? a. imports increase, domestic production increases, prices increaseb. imports increase, domestic production decreases, prices decreasec. imports decrease, domestic production increases, prices decreased. imports decrease, domestic production decreases, prices increase
2.The WTO and GATT promote trade bya. reducing tariffs.b. eliminating quotas.c. reducing agricultural subsidies.d. All of these.
3.Which of the following statements is true? a. Free trade will benefit all workers in a nation equally.b. As a result of specialization some workers will be displaced and so harmed in the short run by free trade.c. Free trade leads to lower wages for all workers in both nations.d. Specialization will result in a decline in an industry and none of those workers will be able to find other jobs.
4.Today, the average U.S. tariff is 4.6 percent of the value of imported goods, which is very low by historical standards. TrueFalse
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