Question

- Jobs lost to foreign trade are generally easy to identify, but jobs created by foreign trade are generally less easy to identify.

a) True

b) False

- A quota is the same as a voluntary export restraint.

a) True

b) False

- One reason a country does not specialize completely in production is that not all goods and services are traded internationally.

a) True

b) False

- A tariff

a) makes everyone better off

b) makes both domestic producers and consumers worse off.

c) makes domestic producers worse off.

d) makes domestic consumers worse off.

Answer 1

a) False, both the job loss and job creation due to foreign trade are easy to indentify in the market.

b) False, quota and voluntary export restraints are different thing, export restrain is used by exporting nation and quota by importing nation.

c) False, they do not specialise fully due to diminishing return.

d) "D"

A tariff will make consumer worse off in the importing market.