SOLVED

19.1  The United States in the International Economy 1) U.S. firms that sell products in foreign markets protested the “Buy American” provision in the 2009 stimulus bill, arguing that if the United States restricted imports from foreign firms, A) foreign countries would likely retaliate by limiting U.S. exports. B) foreign firms would stop selling all products in the United States. C) U.S. firms would never be able to meet the increased demand for U.S.-produced goods. D) eventually the government would demand price cuts from U.S. manufacturers. 2) Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because A) they do not want to offend their employers who want them. B) politicians lobby to convince workers the restrictions will make them better off. C) they believe the restrictions will protect their jobs. D) they don’t understand that the restrictions will threaten their jobs. 3) The intention of the “Buy American” provision in the 2009 stimulus bill was to A) increase jobs in the United States. B) prevent foreign firms from dumping product in the United States. C) insure that products used to build roads and bridges meet U.S. quality and safety standards.  D) save the government money by restricting the sale of more expensive foreign-made products. 4) In the 1930s, the United States charged an average tariff rate ________. Today, the rate is ________. A) of 100 percent; 20 percent B) above 50 percent; less than 2 percent C) of less than 10 percent; over 40 percent D) of 17 percent; 33 percent 5) A tariff is a tax imposed by a government on A) exports. B) services. C) imports. D) luxury items. 6) Goods and services bought domestically but produced in other countries are referred to as A) exports. B) imports. C) transfer payments. D) foreign consumption. 7) Exports are domestically produced goods and services A) sold to other countries. B) sold to the government. C) sold at home. D) which are used to produce other goods and services. 8) When Roxanne, a U.S. citizen, purchases a designer dress from Barneys of New York that was made in Milan, the purchase is A) both a U.S. and an Italian import. B) a U.S. import and an Italian export. C) a U.S. export and an Italian import. D) neither an export nor an import for either country. 9) Which of the following statements about the importance of trade to the U.S. economy is true? A) Since 1950, both exports and imports have steadily decreased as a fraction of U.S. gross domestic product. B) Overall, about 80 percent of U.S. manufacturing jobs depend directly or indirectly on exports. C) The United States is the largest exporter in the world. D) The U.S. economy is highly dependent on international trade for growth in its gross domestic product. 10) In 2010, ________ of Caterpillar’s sales were outside the United States. A) only 12 percent B) more than two-thirds C) less than half D) 95 percent 1